Aventis's Once-A-Day Allegra to Cost Less Than Claritin in US
Paris, March 13 (Bloomberg) -- Aventis SA, the world's biggest drugmaker, plans to sell a once-a-day form of the allergy pill Allegra in the U.S. for less than the cost of a similar dose of Schering-Plough Corp.'s top-selling Claritin.
The French pharmaceutical company won U.S. approval last month for once-a-day Allegra, whose sales already were growing when available only as a less convenient twice-a-day dose. The new dose will make it more of a challenge to Claritin, the world's biggest allergy drug with $2.7 billion in 1999 sales.
DrugStore.com, an Internet site, offered a month's supply of twice-daily Allegra for about $53. A month's supply of Claritin costs about $66. Still, Aventis may need more than a lower price to dethrone Claritin, investors said.
``Certainly, Schering is well aware of the launch of this product and is increasing the marketing behind Claritin,' said Evan McCulloch, a portfolio manager with Franklin Global Heath Care Fund.
Claritin made up about 30 percent of Schering-Plough's $9.2 billion in 1999 sales and analysts say the drug contributes an even higher percentage of its profit. The company built the drug into a blockbuster by placing Claritin ads on everything from television commercials to bags handed out at pharmacies.
Rival Aventis and Pfizer Inc., which markets the UCB SA allergy drug Zyrtec, have adopted the same tack on TV. And now, Aventis is squaring off against Madison, New Jersey-based Schering- Plough in an advertising blitz designed to secure the affections of doctors who could prescribe its medicine.
On the Bag
At a recent meeting of allergy doctors in San Diego, Aventis won the right to put ``Allegra' on the canvas bags handed to every participant. The bags, toted throughout the conference, reminded doctors again and again of Aventis's allergy drug.
Not everything depends on marketing, however. Some doctors attending the American Academy of Allergy, Asthma and Immunology's annual meeting last week said they don't see a lot of differences between the drugs.
``They're all good. The data (on them) is good -- heavily promoted but good,' said Kuo Chang, an allergy specialist with Kaiser Permanente in Portland, Oregon.
Many Allegra users already used the twice-daily version only once a day, prompting some investors to question how well once-a- day Allegra will compete with Claritin.
``For allergic rhinitis, the studies show they are pretty similar,' said Daniel Reichmuth, a doctor who is studying allergy treatment at the University of South Florida. ``There might be some subtle differences.'
Depends on Patient
``My choice depends on the patient and the patient's history,' said Russell Cancellieri, a doctor based in Southampton, New York.
Still, at least one doctor at the medical meeting said prescription decisions can boil down to company efforts -- to which sales representatives spend the most time with him.
Ruchir Agrawal, a fellow specializing in allergy and asthma at Louisiana State Health Science Center, said he uses Zyrtec most often with his patients who need this kind of allergy drug, although it is similar to Allegra and Claritin.
``We never see a Claritin rep, but we see the Zyrtec rep all the time,' Agrawal said. ``As a physician, you can remember only so many medicines and that's what gets into your pen.'
Mar/13/2000 12:15
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Now we have a price war on our hands. SEPR stands to lose from both angles here (Allegra and Claritin 2). |
