Research Indicates OTC Claritin Will Have Minimal Impact on Benadryl Franchise.

Business Editors/Health/Medical Writers

MORRIS PLAINS, N.J.--(BUSINESS WIRE)--Nov. 27, 2002

The current over-the-counter (OTC) allergy market leader, Pfizer Inc's (NYSE: PFE) Benadryl(R) Allergy, will continue its market leadership after Schering Plough's Claritin(R) (loratadine) becomes available OTC, according to research conducted by ACNielsen BASES, a primary consumer research company.

BASES' state-of-the-art forecasting modeling is used to estimate sales potential of new product initiatives prior to market entry. BASES modeling is considered the most sophisticated sales forecasting model available.

"We know Benadryl Allergy users will continue to be loyal to the brand; the product is proven to be more effective than Claritin at relieving your worst allergy symptoms including runny nose, sneezing, itchy nose and watery eyes. Benadryl is also available in many different formulations, while Claritin is not," said Benadryl senior product manager Enrique Alonso. "Benadryl remains a highly effective solution for upper respiratory allergy sufferers. BASES' forecasts are encouraging and help to provide a roadmap for future Benadryl success."

The BASES study revealed that the Claritin switch is likely to have a positive impact on the OTC cold/allergy/sinus category. According to the research, the Claritin OTC switch key outcomes in the allergy category will be:

-- The largest percentage of Claritin's OTC volume is projected to source from current Claritin prescription users, with minimal impact to Benadryl.

-- Claritin is expected to grow total OTC cold/allergy/sinus category retail dollar sales up to seven percent.

-- Despite the introduction of Claritin, Benadryl is predicted to maintain a leadership position in the OTC marketplace.

According to the BASES research and the brands' assumed advertising and promotional support, the Benadryl brand will maintain leadership in this newly expanded category.

Benadryl has been on the market for over fifty years. Benadryl regular and decongestant capsules and liquid became available OTC in 1985, and within eight months, claimed the allergy market leader position. As the leading OTC antihistamine, Benadryl commands a 42.4 percent dollar share of the OTC allergy segment (latest fifty-two weeks Information Resources InfoScan data). The franchise boasts a broad product portfolio that includes products such as Benadryl Severe Allergy/Sinus Headache and Benadryl Allergy/Cold, as well as a number of pediatric products.

ACNielsen BASES is the world's leading provider of pre-market consumer insights for marketers of consumer package goods. The company combines primary consumer research with state-of-the-art forecasting techniques to estimate the sales potential of new product initiatives prior to market entry.

Pfizer Inc discovers, develops, manufactures and markets leading prescription medicines, for humans and animals, and many of the world's best-known consumer products.

This study was commissioned by Pfizer Inc