The National Pharmaceutical Pricing Authority (NPPA) has fixed lower prices for 108 drugs used for treating diabetic and cardiovascular diseases.
While the move will bring down prices of formulations including atorvastatin, gliclazide, glimepiride, heparin and metolazone among others by up to 35%, it is likely to hit profit margins of drug majors such as Sanofi, Abbott and Ranbaxy.
“The NPPA has fixed the prices of anti-diabetic and cardiovascular in respect of 108 non-scheduled formulation packs under Paragraph 19 of DPCO, 2013,” it said in a notification.While drug firms were already simmering with discontent over the issues of de-growth and patent rows, the curbs are likely to add fuel the fire. "NPPA’s notification extends beyond the mandate of DPCO 2013, which clearly states the "intention of the policy is to bring the essential medicines under price control and not to control the Indian pharma industry," said Shailesh Ayyangar, president, Organisation of Pharmaceutical Producers of India.
“The manner in which this decision has been taken is untenable,” said Shailesh Ayyangar, MD, Sanofi India. Sanofi’s shares fell 10.2% on the BSE on Monday.