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Following the move of the drug price regulator – National Pharmaceutical Pricing Authority-- to cap the selling price of 43 drug formulations used to treat infections and gastro intestinal disorders, and few vaccines, commonly used antibiotic drugs such as Ciprofloxacin HCl, Cloxacillin and Rifampicin will now be cheaper by up to 50 per cent.
For instance, 10 tablets of Ranbaxy’s Ciprofloxacin brand - Cifran 500 mg which retails at Rs 98 will now cost not more than Rs 38.60. Likewise Cipla’s brand Ciplox 500 will be cheaper by over 60 per cent.
Not just antibiotics, BCG vaccine and few cardiovascular drugs such as frusemide and Enalpril Maleate will cost you less!
So, what will be the impact on these companies? The revenue loss for drug makers from this move is not likely to be significant, according to an analysis by pharma market research firm AIOCD AWACS.
The revenue impact for Ranbaxy and Cipla is expected to be around ₹ 55 crore and ₹46 crore, respectively. Cadila Healthcare and Pfizer may see their revenue decline by around ₹20 crore and ₹ 13 crore, respectively.
These stocks traded firm on Friday. While Ranbaxy and Cadila closed almost flat, Cipla gained over a per cent.
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