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NPPA fixes ceiling price of 56 scheduled formulations; impact limited
National Pharmaceutical Pricing Authority (NPPA) has fixed ceiling prices of 56 scheduled formulations under Drug Price Control Orders (DPCO). NPPA has also fixed retail prices (ex-local taxes) of eight formulations. This has been done through two notifications from NPPA.
 
According to Religare Institutional Research, the impact on most pharmaceutical sector players and their financials is likely to be limited. Its analysis of affected products indicates that the impact is likely to be marginal– less than 0.5% of domestic revenues– for most players. However, Novartis will be hit by the cap on retail price of its key brand Voveran 100mg (about 35% cut in price), which would in turn affect the company’s annual sales adversely by 4.8%. This fall in sales has been computed without assuming any mitigating impact from higher volumes due to the lower price, point out Religare analysts.
 
Religare believes that Augmentin– GlaxoSmithKline (GSK)’s key brand– could see a combined impact of about Rs400mn or a 20% price cut due to the revised ceiling price. This along with the impact on Cetzine could hurt GSK’s annual revenues by about 1.2%, according to the research note from Religare.  
 
Religare believes that  domestic market growth in FY17 is likely to remain muted due to (a) uncertainty over ban of fixed-dose combination (FDC) drugs, (b) a negative WPI (wholesale price index) leading to price cuts (by  about 2.75%) in NLEM (National List of Essential Medicine) drugs, and (c) recent extension of NLEM list from 348 to 376 drugs. 
 
AIOCD (All Indian Origin Chemists & Distributors) pegs the combined impact at 4%-5% for the sector. Already, there has been muted growth of 3.5% in the month of April 2016, and Religare channel checks suggest that coming months are unlikely to be any better.
 
The impact of the NPPA notifications on the NLEM drugs, and the revenues of the respective pharmaceutical companies, is given in the table below:
 
 

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COMMENTS

Dr Anantha K Ramdas

8 months ago

To my mind this is a farce. I will explain why. When Jan Aushadi was launched, it was expected to cover 504 essential medicines. And the DOP (Department of Pharmaceuticals) were supposed do to many follow up actions. In an article, published in the Moneylife, on 4th Feb 2015, the writer (i.e. myself) had requested that the Ministry of Health give wide publicity, identify the suppliers of generic medicines, ensure the printing of senior citizen's dis counts (where applicable) etc. This was followed up by writing to the Prime Minister's office for putting into effective action as this launch would help "aam aadmi". Promptly and efficiently, the PMO took up the issue with Secretary, Department of Pharmaceuticals vide their letter PMOPG/D/2015/0228776 on 24th September 2015.

As far as I know, the PMO's letter is collecting dust in the DoP. Prices of essential medicines are regularly increased and pharmaceutical shops simply cannot do anything.
There is no check and follow up on policies of such importance and nobody explains any justification for increasing the cost of medicines that sick citizens are forced buy and pay through their nose! If they do not make huge profits, how else can they pay high dividends? What prevents the Government (Ministry of Health) to promulgate an ordinance on pricing?

NIKUNJ H CHHAG

8 months ago

These moves from the current Govt are great but simultaneously there needs to cap the freebies these companies offer to the doctors and other players as all these accounts for the final costing of each medicine.

Builder intent on grabbing housing society land, using black magic to curse Whistleblower
A few weeks ago, Moneylife had reported how Gada Builders of Pune armed with a fake Power of Attorney, usurped an open space and land buildings belonging to Anupama Housing Society in Aundh in Pune. 
 
Thanks to RTI activist and resident of one of the societies, Vijay Kumbhar, documents revealed the illegal land transaction, forcing the Collector, in his capacity as District Magistrate to lodge a FIR against Gada at the Kondhwa Police Station. Kumbhar is distressed that the police have yet to take any action against the builder. On the contrary, Gada has gone to High Court on two counts – to quash the FIR, as well as, the order against him by the Inspector General Registration office.
 
But perhaps, he is not very confident about the judicial system and hence as an added weapon, allegedly evil forces are being invoked to curse the Whistleblower through black magic.
 
Kumbhar was surprised to see lemon, red chillies and coconut, thrown in front of his door, as a bizarre ritual to curse him. At another time the same was seen in front of his building. Says Kumbhar, “when they couldn't deter me from saving my society's interest they have allegedly started doing such silly things. They are now taking help of black magic. They throw black dolls, kumkum, turmeric, lemons, chillies, coconut etc. either at my door of my flat in society in Anupama Society or in front of my building.”
 
Worse, Gada has no hesitation in putting the ball in the court of the IGR stating arguing that since the government department has registered his documents, it is the government officers involved who should be made accountable. This, he has said on Marathi TV Channel as well High Court. That’s how brazen he is.
 
Recalling the first moves of Gada Kumbhar says, “when it came to my knowledge that one Mukesh Gada and Arun Ranwade, who were not even remotely connected with our society, had grabbed two plots of land from our society with a fabricated and bogus Power of Attorney and even registration authorities’ registered documents without looking into the authenticity of IT, I lodged the complaint with IGR. IGR subsequently lodged a police complaint. But the sub-registrar who deliberately registered these documents is safe and sound, as no action has been taken against him.
 
Kumbhar is finding it tough, as residents of his housing society are also not showing the courage to join his fight. Kumbhar rues, “our society is a very old society. I don't know why but the residents of this society are so scared of anybody who is in uniform. They would even quiver if they see a postman. I have purchased a flat here some 8-10 years back. Initially, I was not aware of the gravity of the situation. However, when I started to get hold of the facts, I was shocked. And this is not the issue about my society only. This is happening in all parts of Pune city.”
Senior bureaucrat, Mahesh Zagade, now CEO, PMRDA, writes his reaction in Kumbhar’s Facebook, ``these are outlandish tactics adopted by unscrupulous elements; the best way is to defeat them by ignoring them completely and I'm confident that you would do that. It reminds me of a series of similar experiences as Collector, Nashik. In one such atrocious and ridiculous instance, four very large (3feet ) black dolls with prick pins all over, probably representing four of us in the family, were hanged dangling upside down at my official residence during my crackdown against the land mafia. The positive side was that someone got paid to make these dolls and we felt happy for that…’’
 
On a serious note, read our earlier story on this issue.
 

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COMMENTS

manoharlalsharma

8 months ago

Kumbhar is finding it tough, as residents of his housing society are also not showing the courage to join his fight./Here in Navi Mumbai also a Housinf society where peoples r fighting to get membership since 15/20 years.

S.S.A.Zaidi

8 months ago

Does Black Magic work ? I wonder

8 months ago

I think this malaise is spreading because the law takes its own time and the whistle blower is left high and dry with lack of support from the Govt of the day. I think there are several implications of inaction; the environment suffers; the residents of the encroached Society suffer, denied a play groud for kids, relaxation for residents and a gathering point for the residents. Basically those that encroach have surreptitious olinks with the powers that be of the unfortunate society and largely members suffer in silence. This is a serious matter and needs to be looked into promptly to infuse confidence in the sufferers to come forward without fear and point out the encroachments. The culprits must be swiftly dealt with and only this fear will reduce and eliminate this cancer.

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