Looming Claritin rivals cut S-P shares 7%

The news that two generics companies have joined forces to launch ageneric version of Schering-Plough's recently-switched over-the-counter variant of the antihistamine Claritin (loratadine) in the USA exerted pressure on S-P's share price on January 27. The move, by Andrx and Perrigo, comes at a time when Novartis subsidiary Geneva has also unveiled plans to launch an OTC version of the drug in collaboration with Impax Laboratories, and sparked a near-7% decline in S-P's shares to $18.73.

The new generics will join Wyeth's Alavert, which was launched in the USA in late December 2002, in competing with the Claritin range; the OTC version brought in just $105 million to S-P's coffers in the fourth quarter of 2002, versus $688 million in the same period of 2001 (see page 6).

Andrx and Perrigo have entered into a multi-year agreement in which the former will manufacture and supply Perrigo with generic versions of Claritin-D 12 Hour, Claritin RediTabs and Claritin-D 24 Hour, which Perrigo will market.