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Sun Pharma In The News

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Prices of 8 drugs cut

THF country's drug price regulator has reduced the prices of eight medicines sold by leading pharma companies such as Cipla, Sufi Pharma and Unichemby up to 85%, in one of the sharpest price-cuts in the last few years.

The National Pharmaceutical Pricing Authority (NPPA), a few days ago, slashed the maximum price at which these eight medicines could be sold after its market survey found that companies were selling them at huge premium compared to its manufacturing and sale costs.
 
NPPA prescribes a price-ceiling for drugs containing any of the 74 chemicals that are under price-control to contain the cost of medication for consumers.
 
The prices of seven of these eight brands have been fixed by the drug price regulator for the first time. The maximum price for Cipla's popular combination antibiotic Ciplox TZ has been drastically cut by 74% from Rs 100.73 to Rs 25.7 (excluding taxes) lora ten-tablet strip.
 
Hemant Bakhru, an analyst with brokerage firm CLSA, said the Ciplox TZ price-cut will adversely impact the operating profit and bring down Cipla's earnings per share by 1 %. "The impact will be felt from end of this fiscal, " he said. Cipla is the second-largest player in the domestic drug retail market
 
As per industry estimates, Ciplox TZ, along with parent brand Ciplox, rakes in about Rs 100 crore for Cipla, though Ciplox, which is among Cipla's largest-selling brands, accounts for more than half of this.