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Sanofi India Ltd. and GlaxoSmithKline Pharmaceuticals Ltd. are staring at a revenue loss as a few of their products may see price cuts on being included in the essential medicines list.
Sanofi’s insulin glargine and GSK’s oral and topical antibiotic medications—that contribute to a sizeable chunk of the companies’ revenues—have been included in the National List of Essential Medicines released by the National Pharmaceuticals Pricing Authority, according to ICICI Securities’ Sept. 14 report.
The drugs included in the list will see cap on prices to make them affordable and widely available to the public.
JB Chemicals & Pharmaceuticals Ltd.’s antacid, however, has been excluded from the list, indicating a “positive” impact, it said.
This is the fourth revision to the list since 1996, with the last revision in 2015.
The updated list includes 384 drugs across different therapies.
“In our view, a few noteworthy products that have been included in the revised list are Amikacin (antibiotic), Cefuroxime (antibiotic), Insulin Glargine (anti-diabetic), Itraconazole (antifungal medication), Mupirocin (topical antibiotic) and Teneligliptin (anti-diabetic), with each having annual sales of more than Rs 300 crore,” ICICI Securities said in its report.
Inclusion in the list will push the companies to sell their brands at or below the simple average industry price. This would entail price cuts for all firms selling above the average.
Sanofi, GSK and JB Chemicals have yet to respond to BQ Prime’s emailed queries.
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