OVER-THE-COUNTER PLEA WELLPOINT BACKS NONPRESCRIPTION CLARITIN.

Byline: Evan Pondel Staff Writer

THOUSAND OAKS - Wellpoint Health Networks is petitioning to reduce the cost of allergy drugs in an effort to improve consumers' access and save the company money by consolidating pricey prescriptions.

A federal advisory panel recommended this week that nonprescription Claritin be approved so that people could eventually buy the drug over the counter. And though a nonprescription form of the allergy drug ultimately depends on the Food and Drug Administration, Wellpoint is advocating its approval.

To Joshua Raskin, an analyst with Lehman Brothers in New York, Wellpoint's impetus is obvious. ``It could cost $70 a month per member to provide prescription drugs. But, if you go over the counter with those drugs, they (Wellpoint) pay zero,'' he said.

With more than 12 million members, shaving the cost for prescription drugs is always attractive to a large managed-care company. Thousand Oaks-based Wellpoint spends close to $100 million a year on allergy treatments. Still, that figure quickly becomes less significant when compared with the company's $414.7 million in annual net income for 2001, Raskin said.

Schering-Plough posed the argument about a year ago that an over-the- counter version of its Claritin drug could be dangerous for patients. Yet, over-the-counter versions of Claritin are currently sold in Canada and the United Kingdom.

Dr. Jacob Offenberg, a Granada Hills allergist, said he is confident of the drug's safety, but not convinced an over-the-counter version would benefit consumers' well-being. Instead of consulting a doctor for allergy symptoms, allergy sufferers would be more inclined to diagnose themselves if Claritin were that easily accessible.

``And that's why it could be a problem. Someone may think they have hay fever and really don't,'' he said.

Another inherent negative with over-the-counter approval of the allergy drug is the potential cost patients would bear. Offenberg said the managed-care companies currently take on most of the cost when it comes to prescription drugs. If Claritin is no longer prescribed, patients would have to pay for the drug out of their own pockets, he said.

Despite concerns involving misdiagnosis and greater costs for consumers, Wall Street still has the potential to benefit from prescription drugs that hit the aisles of drug stores.

John Szabo, analyst with CIBC World Markets Corp. in New York, said it's a benefit to the overall health care sector if companies can spend less money when paying for consumers' drug needs. ``It's hard to argue against this. Conceptually, it just makes a lot of sense for the drug to go over the counter,'' he said.

Other analysts are impressed by Wellpoint's ability to stand up to a large pharmaceutical. ``It's a gutsy approach, and they (Wellpoint) should be admired for what they're doing,'' said Todd Richter, analyst with Banc of America Securities in New York. ``And it's also naive to think consumers would have to pay more if the drug went over the counter.''

Wellpoint remains steadfast in its belief that consumers are the main benefactors of nonprescription Claritin. Most of the drugs on the market induce drowsiness, whereas Claritin has the side effects equivalent to ingesting a sugar pill, according to Ken Ferber, spokesman for the company.

And the money Wellpoint will save from the approval of over-the-counter Claritin - that would be channeled toward more important drugs, Ferber said.