Chattanooga-based Chattem is aiming for a spring launch of the popular allergy drug Allegra as a nonprescription medication, and the company's chief is calling the introduction one of the industry's biggest.
Chattem CEO Zan Guerry said experts indicate that turning Allegra into an over-the-counter drug is "one of the most important launches in the next five years."
"It's going to be very exciting," Guerry said this week at a Chattanooga Area Chamber of Commerce meeting that rolled out the city's new job-growth plan.
The Chattem chief has said Allegra probably will be a $250 million to $350 million brand when it hits store shelves.
He said the company likely will spend more on advertising Allegra than its entire budget for Chattem's 20-plus other brands, which include Gold Bond powder, Act mouthwash and Selsun Blue shampoo.
Chattem officials said they are still working through how much Allegra will cost next spring.
Chattem landed the key Allegra launch after the company was purchased late last year by French pharmaceutical giant Sanofi-Aventis for $1.9 billion in cash.
Bruce Hutchinson, a University of Tennessee at Chattanooga economics professor, said nonprescription Allegra could have "a huge market" in the United States.
"For allergy suffers and Chattanooga in terms of employment ... there are a lot of winners all around," Hutchinson said. "Chattanooga and the Chattem people need to have a few like that."
Hutchinson said that, like many others in the city, he's an allergy sufferer.
Chattanooga was No. 3 on the Asthma and Allergy Foundation of America's most recent top 100 list of the nation's "allergy capitals." Knoxville was No. 1, followed by Louisville, Ky.; Chattanooga; Dayton, Ohio, and Charlotte, N.C.
Chris Viehbacher, Sanofi-Aventis CEO, has said Chattem will become the U.S. headquarters for the French titan's over-the-counter operations.
Sanofi was approached by many drug companies eager to take over the Allegra brand when the patent expires. But Sanofi bought Chattem to help build Allegra and future over-the-counter products within its company, he said.
"Chattem's existing sales, marketing and distribution teams and infrastructure provide a tremendous platform for future conversions of prescription medicines to [over-the-counter] products in the U.S.," he said.
Last week, Sanofi said in a third quarter financial report that a filing for the Allegra switch was submitted at the end of March to U.S. regulators and it's expected to be available first quarter of next year.