In a rare invocation of a lesser-used provision in the Drug Price Control Order (DPCO), NPPA has fixed the prices of 108 formulation packs of 50 anti-diabetic and cardiovascular medicines. What makes the development significant is that NPPA has fixed prices of those medicines which are not listed under the national list of essential medicines (NLEM). Prices of 652 drugs under NLEM were fixed by the government last year under DPCO 2013.

Commenting on NPPA pricing policy, Saion Mukherjee, research analysts, Nomura Financial Advisory and Securities, said, ''As per AIOCD AWACS, the new drugs that are brought under price control have end-market sales of Rs 55 billion, approx 6% of the India Pharmaceutical Market (IPM). The companies most impacted are Sanofi India, Emcure, Zydus Cadila, Abbott Healthcare and Ranbaxy.'

Sarabjit Kour Nangra, vice president research-pharma, Angel Broking said, 'The biggest impact will be felt for companies like Sanofi (Rs 1.39 billion lost sales), Zydus Cadila (Rs 400 million lost sales), Ranbaxy (Rs 380 million lost sales), Cipla (Rs 190 million lost sales), Lupin (Rs 320 million lost sales), DRL (Rs 140 million) and Sun Pharma (Rs 250 millin lost sales), on the basis of AIOCD AWACS.'

While Karvy Stock Broking said, 'We believe as this impact is on MRP Value, the impact on the company would be lower by around 30%  based on preliminary estimates. We await more clarity from AIOCD for product wise impact. The impact of Ceiling Price declared products basket  based on MRP- overall for top companies based on June 2014 Data; Sanofi India, Zydus Cadila, Lupin, Torrent Pharma, Sun Pharma, Cipla and Dr Reddy Labs.'

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.