Schering-Plough Sues Pfizer In Dispute Over Allergy Drug Settlement
October 05, 1998 8:17 PM
NEW YORK -(Dow Jones)- Schering-Plough Corp.
filed a lawsuit Monday against Pfizer Inc., claiming the
rival drug-maker broke a previous agreement that
resolved a heated dispute between the two companies
over their competing allergy drugs.
Schering-Plough (SGP) markets Claritin, while Pfizer
(PFE) markets the rival prescription allergy medication
Zyrtec. The dispute between the two companies dates
to 1996, when they attacked each other over their
marketing practices - Schering-Plough claimed Pfizer
salesmen were falsely touting their drug as nonsedating,
while Pfizer claimed Schering-Plough salesmen put
warning stickers on Zyrtec samples in doctors' offices.
The two sides settled the litigation that resulted,
promising to back off even though they didn't admit any
wrongdoing. But in the new lawsuit, filed in federal court
in New York, Schering-Plough alleged Pfizer has
violated that settlement, by continuing to claim that
Zyrtec doesn't cause drowsiness.
That hurts Schering-Plough, the company says in its
lawsuit, because if doctors and other medical
professionals inaccurately think of Zyrtec as
nonsedating, they're more likely to prescribe it instead of
Claritin.
The Food and Drug Administration has required Zyrtec
to include a drowsiness warning in its labeling, because
people who take it feel drowsy more often than might be
expected from taking a placebo. Claritin is categorized
as nonsedating and doesn't have to include such a
warning.
On Monday, Pfizer's (PFE) stock closed down $4.375,
or 4.4%, to $94.75 a share, on New York Stock
Exchange volume of about 5.5 million.
Schering-Plough's (SGP) stock ended down 12.5 cents,
or 0.13%, to $99.375 a share, on Big Board volume of
1.8 million.
A spokeswoman for Pfizer said she wasn't aware of the
new suit and had no immediate comment.
UCB Pharma Inc., which also markets and sells Zyrtec,
was also named as a defendant in the suit. UCB Pharma
is a unit of Belgium's UCB S.A.
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