Pharma companies cut prices of top medicines

MUMBAI, 22 JUNE 2013: Prices of widely-used medicines like antiseptic skin lotion Betadine, fever pill Calpol, supplement folvite, antibiotic Azithral, a host of cardiac medication including Ismo, Losar and Repace (Losartan) and anti-diabetic drug Daonil, will be revised downwards. The price reduction comes in the wake of a proposed revision by drug companies in line with ceiling prices notified by the drugs pricing regulator earlier this week. The benefit to patients is an average 25-27%, while the loss to companies in the first round of the policy implementation will be around Rs 920 crore annually. While multinationals like Pfizer and GSK lead the pack of companies most impacted in the first round, others which are hit include Bharat Serums, Win-Medicare, Abbott, Wockhardt, Sun Pharma, Ranbaxy and Zydus Cadila. Pfizer will suffer a loss of Rs 48 crore, followed by Rs 43 crore by GSK on an annual basis, in the first round of implementation of pharma policy. Dermatology (betadine) and blood-related therapies (folvite) will register the biggest drop in prices of over 55%, while drugs for neuro and central nervous system (CNS) ailments will be slashed by 37% and vaccines 36%, in the wake of the ceiling prices notified in the first round, according to analysis by pharma research company, AIOCD AWACS. Drug companies kicked off the first round of price decreases in their portfolio, sounding out stockists that they would initiate the process of taking back existing stock over the next few weeks. Chemists say they are trying "to avoid" stocking premium and expensive brands, and are keeping less inventory. The National Pharmaceutical Pricing Authority (NPPA) notified the ceiling prices of 151 medicines, of which 140-odd products, totalling 3,088 packs were analysed by the research firm. Of these, 950 packs were above the ceiling price, which are expected to be revised downwards by companies over the next few weeks. Prices of gastro-intestinal medication including buscopan and pantodac (pantoprazole) will also be slashed, while anti-infectives and anti-malarials will see a reduction. Significantly, prices of certain crucial HIV and anti-cancer medicines will also witness a drop. Certain HIV medicines like lamivudine and stavudine, and nevirapine, are slated to go down.

Times of India