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NPPA proposes to cap key diabetes drug four times higher than market price

Maitri Porecha New Delhi | Updated on December 16, 2019 Published on December 16, 2019

With a large number of diabetic patients dependent on the drug, the current market size of Vildagliptin is ₹818 crore   -  artisteer

The National Pharmaceutical Pricing Authority (NPPA) has proposed to cap the price of key diabetic drug —Vildagliptin plus Metformin tablet — at between ₹22.70 and ₹23.40 per tablet. The ceiling price is about four times higher than the price announced by domestic generic manufacturers, when the patent on the Novartis brand for the drug expired on December 9.

On the same day the ceiling price proposal was recorded in the minutes of a meeting of the NPPA.

With a large number of diabetic patients dependent on the drug, the current market size of Vildagliptin is ₹818 crore as per IQVIA MAT November 2019 in India. It is a widely prescribed anti-diabetic medicine for adults with type-2 diabetes mellitus.

Zydus has announced that Vinglyn M (Vildagliptin plus Metformin) tablets will be priced at ₹6.95 per tablet. The NPPA will have to revise it’s proposal to balance market forces, experts said. “Pre-December 9, four to five brands were present in the market which had priced the drug at close to ₹20 per tablet and the NPPA may have taken those prices under consideration. But from December 10 onwards, a flood of brands entered the market, which has lead to slashing of the prices. The NPPA fixes it’s price based on market forces and it will have to revise it’s proposal,” said Hari Natarajan, Founder, Pronto Consult.

As per the minutes of the NPPA meeting, the price for Cadila, Intas, Eris Lifesciences, Emcure and others for Vildagliptin 50 mg Metformin 500 mg tablet has been proposed to be capped at ₹22.70. The Vildagliptin 50 mg Metformin 850 mg tablet has been proposed to be capped at ₹22.75, and that of Vildagliptin 50 mg Metformin 1000 mg is proposed to be capped at ₹23.40.

Emcure has started producing the range of these drugs — it’s brand Vylda and Vylda-M — at a price of ₹8.90 per tablet.

Cipla acquires brand name

Meanwhile, Cipla acquired the brand name — Vysov and Vysov M — from Novartis on Monday, the drug they had been co-marketing with the originator company – Novartis. Cipla, however, has refrained from sharing the price per tablet at the moment.

Nikhil Chopra, Executive Vice-President and Head India Business, Cipla Ltd, said: “Owing to the increased affordability of Vildagliptin it is more accessible for better management of the disease. Cipla’s acquisition of the trademark rights of Vysov will enable us to contribute to easier access of the drug in India.”

Published on December 16, 2019
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