Drug Retailers Targeting Flu Season - Analyst Blog

Although the severe H1N1 alarm will not mark this year's flu season, drug retailers such as Walgreen (WAG) and CVS Caremark Corporation (CVS) are gearing up to tackle this year's flu season. Walgreen's is preparing to provide flu shots to more customers and has also increased advertising to meet the objective.

According to the company, the major difference between this year's flu season compared to last year is associated with the flu shot required – currently, a person will be requiring one flu shot covering both the seasonal and the H1N1 strain compared to two separate shots.

Moreover, the Center for Disease Control and Prevention (CDC) now recommends flu shots for everyone over six months of age whereas last year, the emphasis was on seniors and others with compromised immune systems. While manufacturers have made over 40 million doses this year, Walgreen's is intending to deliver 15 million flu shots (priced at $30) compared to 7 million last year.

According to a recent CDC report, flu activity is steadily increasing in the US with 8 states witnessing widespread outbreaks of influenza cases. However, a recent survey done by CVS pharmacy shows that 56% of respondents have not received the shots while 93% are aware that flu cases have been reported during the season.

The companies are trying to reach out to these people who have not yet taken the shots as the month of February, which is just around the corner, witnesses the maximum incidence of flu cases.

To meet its objective, Walgreen's has increased the number of certified immunizing pharmacists and nurse practitioners by 10,000 to reach 26,000. Through the end of the first quarter, approximately 5.6 million flu shots were administered, higher than the year-ago period which was marked by the H1N1 pandemic.

The company is undertaking the steps to become a prominent player in the $40 billion total immunization market. We are encouraged to note that apart from the federal government, Walgreen's provides more flu shot immunizations than any other single entity in the US.

 
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