Cipla has dropped the prices on three of its key cancer medicines.
In a move that will stir up the pot, the company has significantly dropped its price on generic Sorafenib, used in advanced kidney cancer, from Rs 27,950 to the patient per month to Rs 6,840, an official familiar with the development said.
Sorafenib is the drug on which the Patent Office recently issued a compulsory licence allowing Natco to make a generic copy of this drug, on the payment of a royalty to the innovator company, Bayer.
Natco had pegged its price at about Rs 8,900, while Bayer’s price on its branded Sorafenib (Nexavar) is Rs 2.8 lakh.
Price-cuts
Reputed domestic companies are often not able to undertake steep price-cuts on medicines because the medical profession doubts the quality of the drug, observed Cipla Chairman and Managing Director, Dr Y.K. Hamied.
With Natco’s price pegged at over Rs 8,000 (as submitted at the Patent Office), that becomes the benchmark price, Dr Hamied told Business Line , adding that the price-cuts on the three Cipla drugs come into effect right away and would be seen on the new batches of these medicines.
The company is bringing down the prices by taking advantage of the economies of scale it has managed to get on the product, added the company official.
Oncology is not a large part of Cipla’s portfolio, but is increasingly getting a major thrust from the company, Dr Hamied added.
Lung cancer
Cipla has also dropped its price on lung cancer drug Gestinib by 60 per cent. Retail prices have come down from Rs 10,200 to Rs 4,250, the official said. The original drug is made by Astra Zeneca under the name Iressa.
Brain tumour
The third drug that Cipla is dropping the prices is on brain tumour drug Temozolamide in three strengths. Schering makes the original drug.
On the 20-mg pack of five, Cipla has brought down the price from Rs 1,875 to Rs 480; on the 100-mg strength, prices are down from Rs 8,900 to Rs 2,400 and on the 250-mg — it’s down from Rs 20,250 to Rs 5,000.
On Thursday, the Cipla stock was trading marginally down 0.14 per cent at Rs 317 on the BSE at 12.30 p.m.