S 1172 "will add $9.64 billion to Schering-Plough's revenues during 2002-12"

Americans should save $7.33 billion by 2007 if generic competition forSchering-Plough's Claritin (loratadine) starts in 2002 when its patent expires under current law, says a new study by Stephen Schondelmeyer of the University of Minnesota College of Pharmacy's Prime Institute. The report was presented as testimony to the Senate Judiciary Committee's hearing on S 1172, the Drug Patent Term Restoration Review Procedure Act of 1999 (see page 13).

As Claritin represents 66% of the market value for the eight pipeline drugs that would benefit from S 1172, Dr Schondelmeyer puts the bill's total cost impact for consumers and taxpayers at $11.15 billion in 2002-12. The added cost of prescription drugs would be borne proportionately by individual and institutional payers, including federal and state government, he says. The government's total share of outpatient prescriptions, now 20%-25% of all spending, would double to 45%-50% with a Medicare prescription drug benefit. The cost of S 1172 to government would be at least $1.89 billion, rising to $5 billion with such a benefit.

Looking at the drugs affected by S 1172, he says Claritin had sales of $1.9 billion in 1998, accounting for 84% of the drug's worldwide sales which, in turn, represented 34% of S-P's global revenue of $7.3 billion. Sales of SmithKline Beecham's Relafen (nabumetone) reached $450 million and Searle's Daypro (oxaprozin) $300 million. 45 million allergy sufferers and 40 million arthritis patients in the USA may be affected by S 1172, it claims, adding that the Canadian price of Claritin 10mg is $18.34, against $54.72 in the USA.