Walmart Launches Its Own Insulin Brand

Walmart (WMT) is expanding its range of healthcare products with the launch of a private brand of diabetes drug, insulin. Walmart pharmacies will begin selling ReliOn NovoLog insulin this week. The product will be available at Sam’s Club pharmacies in mid-July.

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Walmart’s ReliOn NovoLog insulin is available in the form of analog insulin vials and FlexPen. The company is obtaining its supplies from Novo Nordisk (NVO). The retailer says its insulin is more than 50% cheaper than branded products. According to American Diabetes Association CEO Tracey D. Brown, the cost of managing diabetes is about $9,601 a year per person.

“We know many people with diabetes struggle to manage the financial burden of this condition, and we are focused on helping by providing affordable solutions,” said Walmart Health & Wellness Executive Vice President Dr. Cheryl Pegus.

In addition to affordability, Walmart also aims to improve access to insulin. The retailer operates a network of about 10,500 stores that serve around 220 million customers each week. Customers will require a prescription to purchase Walmart’s ReliOn NovoLog drug. (See Walmart stock chart on TipRanks).

Jefferies analyst Stephanie Wissink recently reaffirmed a Buy rating on Walmart stock with a price target of $184. Wissink’s price target suggests 34.01% upside potential.

The analyst reiterated her bullish view after hosting a virtual conference with the management of Walmart’s Sam’s Club and noted that the tone was upbeat.

“Mgmt. pointed towards its strength in food & consumables, which reached the low-20%s during the pandemic with solid growth persisting into Q1. General merch categories remain robust, with home & apparel a standout in Q1 at +high-50%s. These trends have persisted, with CEO noting their core customer is a social host, active parent buying in bulk, above avg sized family, and/or small biz owner; avg HH income ~$100K,” commented Wissink.

Consensus among analysts is a Strong Buy based on 15 Buys and 4 Holds. The average Walmart price target of $167.24 implies 21.81% upside potential to current levels.

TipRanks data shows that financial blogger opinions are 88% Bullish on WMT, compared to a sector average of 72%.