Wyeth Foreign Growth Strong While Alavert Sales Pick Up At Home

Sales for Wyeth's non-sedating antihistamine Alavert (loratadine) more than quadrupled compared to the previous quarter.

Alavert sales were $17.6 mil. for the quarter ended March 31. The uptick follows a weak ending to 2003, when Alavert accounted for $4 mil. in fourth quarter sales (¹ (Also see "Wyeth Sees Alavert Sales Decline In Fourth Quarter Despite Good Year" - Pink Sheet, 26 Jan, 2004.), p. 4).

"We are pleased to see how consumers are returning to Alavert for what we expect to be a significant allergy season," CFO Kenneth Martin said during an April 21 earnings call.

However, compared to the first quarter of 2003, Alavert sales slipped 16.4%, reflecting increasing generic pressure in the OTC loratadine market.

Private label loratadine products have been making market-share inroads against Alavert and Schering-Plough's Claritin (² (Also see "Loratadine Private Labelers Gain On Branded Alternatives" - Pink Sheet, 12 Apr, 2004.), p. 6).

While Alavert is sold only in the U.S., Wyeth's consumer health business saw its strongest growth overseas. Globally, consumer health sales for the quarter were up 11% to $588.4 mil. compared to last year. Excluding favorable impact of foreign exchange, global net revenue was up 6% for the quarter.

"The consumer business showed continued solid performance in the U.S. and internationally," Martin said, "due to a number of factors including global growth in the division's core Advil , Centrum , and Caltrate brands."

Centrum was particularly strong internationally, growing 46.5% to $62.5 mil., while slipping slightly in the domestic market. The Robitussin line performed well with global growth of 32.3% to $48.4 mil.

Domestically, the division grew a modest 2.4% to $353.3 mil.

Wyeth's pharma division also was driven by international sales.

"The international performance...was particularly strong in the first quarter, led by extraordinary growth in Europe," Bernard Poussot, global pharmaceuticals president said.

"As of year-end 2003, Wyeth is the fastest growing company of the top 15 pharmaceutical companies in Europe," Poussot added.

Overall, Wyeth's worldwide net revenue grew 9% over the year-ago quarter to $4 bil.

Among five key growth-driving Rx products was the proton pump inhibitor Protonix (pantoprazole sodium), for treatment of gastroesophageal reflux disease (GERD).

"Protonix continues to be a leading performer in the PPI category," Poussot said. "Total prescriptions in the most recent four-week period are up 27% versus last year."

The drug's net sales of $411 mil. were up 14% versus the first quarter of 2003, "reflecting the noticeably higher rate of discounting and rebating in this highly competitive category in the first quarter of 2004 as compared to last year."

The increase in sales comes at a time when the Rx PPI market is contracting. Poussot and Martin noted the competitiveness of the category, and speculated that the discounting and rebating strategies are likely to continue.

"We had volume increase of about 23%, which generated a 14% net sales increase, so that gives you an idea of roughly the degree to which we've had rebating or discounting," Poussot said.

Wyeth has stressed it does not anticipate much impact on Protonix from the presence of Prilosec in the OTC market. The firm has shown more concern about generic omeprazole in the Rx arena (³ 'The Tan Sheet' Sept. 22, 2003, In Brief).

Poussot conceded the threat of more direct competition. "We have been advised of the filing of two [Abbreviated New Drug Applications] for Protonix with Paragraph IV certifications. Wyeth and our licensing partner Altana will vigorously enforce and defend our patents."

He noted the firm "still projects solid growth in dollar sales for 2004 versus 2003" for Protonix.