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BW Businessworld

Controlled Drug Prices To Fall 25 Per Cent

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Retail prices of medicines are set to become cheaper. The first round of ceiling prices announced by the drug price regulator National Pharmaceutical Pricing Authority (NPPA) will see an average reduction of 25 per cent in the retail prices of medicines figured in the list, notes pharmaceutical market research firm AIOCD-AWACS. Among the worst hit will be pharma majors such as Pfizer, Glaxosmithkline and Bharat Serums & Vaccines.

An analysis carried out by the agency on 140 of the 151 products for which ceiling prices announced by NPPA on 14 June puts the cumulative reduction of prices on 3,088 pack of medicines at Rs 920 crore. While 51 per cent or Rs 472 crore will be the revenue loss for the pharmaceutical companies, the rest is the reduction in trade margins for the drug trade. 

According to Ameesh Masurekar, director, AIOCD-AWACS, at least 21 pharma companies will take a hit of more than Rs 5 crore due to this price reduction. A summary of impact companies having a hit of more than Rs 5 crore (at price to the stockist) in the current round is given in the box.