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Perrigo to cooperate with Teva on over-the-counter allergy drug Zytrec
Tags: Teva

Drug developer Perrigo Co. announced that Teva received Food and Drug Administration approval to sell Cetirizine, an over-the-counter version of the allergy treatment Zyrtec-D. Perrigo and Teva are partners in marketing the drug, and Perrigo made its announcement last Thursday. Teva will manufacture the drug.

The allergy medicine is a 5-milligram time-release capsule, which is supposed to relieve allergy symptoms for 12 hours, including nasal congestion and itchiness.

The generic version will be sold by Perrigo under store brand names, and profits will be split with Teva. Perrigo already sells the regular version of Cetirizine over the counter.
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McNeil Consumer Healthcare, a unit of Johnson & Johnson, launched its over-the-counter version of Zyrtec in January, after purchasing the rights from Pfizer. Sales of time-release Zyrtec totalled $190 million in 2007, according to medical research agency Wolters Kluwer. Total sales of the original prescription Zyrtec were estimated at $1.4 billion for the 12 months ending in October 2007.

Perrigo received FDA approval in December 2007 to sell generic Zyrtec in 5 and 10 milligram tablets. Perrigo said it plans to ship within 90 days.

This is not the first cooperative venture between Teva and Perrigo in non-prescription over-the-counter drugs, said Rafi Lebel, CEO of Perrigo Israel. He said the price of the generic will be about 30% lower than the version sold by Johnson & Johnson, and Perrigo's version of the regular version has captured 70% of the market already.

Zyrtec lost its patent protection at the end of 2007, and the drug should have been able to be sold as an ordinary generic. However, Johnson and Johnson changed the drug's status to over the counter and this changed Teva's strategy.

(Yoram Gabison)
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