Those Bargain Generics: The generic market is evidently a booming business, and about to get better, as one frequent commenter here often points out. It's so good that Wal-Mart's bargain basement prices aren't a problem- for Wal-Mart or its supplier, McKesson:

Wal-Mart, based in Bentonville, Ark., estimates that the 331 drugs now covered by its discount program represent more than 25 percent of the prescriptions filled at its pharmacies nationwide. The company recently said the program is offered at 3,009 pharmacies in 38 states.

In its earnings reports this year, McKesson has pointed to its generics business as a source of increasing profit. McKesson, the largest distributor of generic drugs in North America, said it moves quickly to make generics available to customers once the patents on brand-name drugs expire.

Because patents are expiring on so many expensive drugs, the growth rate of revenue from pharmaceutical distribution is dropping, it said. But profit margins from the increased sales of generic drugs should be higher, McKesson predicted in a May 4 report.