Govt cuts prices of 25 drug formulations

In a move that can hit pharmaceutical major Reckitt Benckiser's bottomline, the government has cut the prices of Dettol antiseptic liquid.

Dettol, the flagship brand of Reckitt Benckiser, is the market leader in the antiseptic liquid category.

The National Pharmaceutical Pricing Authority (NPPA) yesterday set the prices of 25 drug formulations. The new prices will become effective from the date of notification in the official gazette.

The move may also hit E Merck's profits since the prices of its Encephabol tablet have been halved.

The government has also cut the prices of tetracycline-based formulations marginally, while the prices for Vitamin C tablets have been raised. Prices have been set for ophthalmic solutions and Vitamin E tablets for the first time.

Drug companies, however, have some reason for cheer. For the first time, NPPA has allowed for the additional cost for hologram labeling as a move to strengthen the fight against spurious drugs.

The prices of E-Merck's encephabol tablet, used to treat mental and psychic developmental disorders in children, have been slashed almost 50 per cent. The 10s aluminium blister of 200 mg tablets will now cost Rs 42.34 instead of Rs 84.05.

The price of Encephabol suspension has, however, been raised about 23.5 per cent to Rs 119.58 per 100 ml bottle.

Prices have also been set for Merck's Vitamin E-based Evion tablets. It's 10s aluminium blister will now cost Rs 36.16 (exclusive of local taxes).

Dettol Antiseptic liquid price has been pared marginally and fixed in case of certain packs. Consumers will, however, have to pay up to 15 per cent more for chewable Vitamin C tablets. The ceiling price, exclusive of excise duty and local taxes, of a 10s strip is now Rs 9.49.

Prices of tetracyclin tablets and capsules have been tinkered with marginally. It is a broad spectrum drug sold in large numbers in semi-urban and rural markets by a score of pharmaceutical companies.

Prices of ophthalmic drops, containing tobramycin and dexamethasone, have been raised 21 per cent. The NPPA has also set the ceiling prices for four formulations containing betamethasone -- a steroid used to reduce swelling -- for the first time.