Schering-Plough has admitted that it underestimated the effect that Claritin switching to an over-the-counter product would have on its profits.

The company has been forced to cut its profit expectations for 2002 for the second time in three months after sales of the non-drowsy antihistamine, at one time its biggest-selling product, fell further than expected

Schering-Plough first warned in October that earnings per share would remain level with 2001 levels, but the company now says that they will be 11 to 13% lower than that.

This year the company expects earnings per share to continue to drop as it deals with the fallout from competition for Claritin, manufacturing problems and an investigation by US financial watchdog the SEC into its disclosure policy.

pharmafocus@pharmafile.co.uk