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Sun Pharma In The News

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Prices of eight drugs slashed

UP TO 85% CUT SHARPEST IN PAST YEARS

THE country's drug price regulator has reduced the prices of eight medicines sold by leading pharma companies such as Cipla, Sun Pharma and Unichem by up to 85%, in one of the sharpest price-cuts in the last few years.
 
The National Pharmaceutical Pricing Author'ity (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 com'pared 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 toRs 25.7 (ex'cluding taxes) fora ten-tablet strip.
 
Hemant Bakhru, an analyst with brokerage firm CLSA, said the Ciplox TZ price-cut will ad'versely 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 Rs100 crore for Cipla, though Ciplox, which is among Cipla's largest-selling brands, accounts for more than half of this.