Multinational and Indian drugmakers to face another price cap

In a major blow to drug companies, India's National Pharmaceutical Pricing Authority (NPPA) has decided to cap the price of 50 drug formulations used to treat cardiac disorders and diabetes, as well as 40 more drugs to treat diseases ranging from malaria and HIV.

Though the move is likely to bring down prices of some key medications by as much as 35% to 50%, it is also set to hurt multinationals like Sanofi, AstraZeneca, Merck & Co, Abbott and Pfizer, operating in the country, as well as Indian drug majors, reports The Pharma Letter’s Indian correspondent.

Domestic firms such as Lupin, Glenmark Pharma, Ranbaxy Laboratories, Cadila Healthcare, Torrent Pharma and Dr Reddy’s derive about 10% to 20% of their sales from these products.