INDIA – Pharma majors GSK and Sanofi may have a negative impact on their revenues after the central government has included drugs manufactured by these companies into the updated national list of essential medicines (NLEM).
The drugs in the NLEM are scheduled drugs that are under price control by the central government. While the NLEM portfolio constitutes 17 percent of overall Indian Pharma Market (IPM) sales, the contribution is in the 7-44 percent range for the top 25 companies.
According to pharmaceutical analysts, GSK would have to reduce prices for its antibiotics Ceftum and T- Bact which cumulatively cover around 15 percent of its sales.
On the other hand, Sanofi would have to reduce prices for Lantus – an ophthalmic drug that has a fair share of 22 percent of its sales.
“GSK and Sanofi would be negatively impacted since GSK would have to reduce prices for Ceftum and TBact which makes cumulatively around 15 percent of its sales while Sanofi would have to reduce prices for Lantus which is around 22 percent of its sales,” said Vinay Bafna and Rohan John, pharmaceutical analysts from ICICI Securities Limited.
The NLEM drugs include various therapies such as antibiotics, anti-inflammatory, antiseptics, painkillers, gastrointestinal, antifungal, vitamins and minerals.
As per the National Pharmaceutical Pricing Authority’s (NPPA) rule, drugs not falling under NLEM are allowed to take a maximum hike of up to 10 percent annually based on the Wholesale Price Index (WPI).
The Indian government in its new list has added medicines like Fludrocortisone – a steroid, Ormeloxifene, and anti-diabetic drugs like insulin Glargine and Teneligliptin.
Montelukast, used in respiratory diseases, and Latanoprost – an ophthalmological drug – along with popular antibiotics like meropenem and cefuroxime have also made way to the new list.
Union health minister Mansukh Mandaviya said that several antibiotics, vaccines, anti-cancer drugs, and many other important drugs will become more affordable and reduce patients’ out-of-pocket expenditure.
Interestingly, NLEM 2022 also included patented drugs like bedaquiline and delamanid (anti-TB), dolutegravir (anti-HIV), and daclatasvir (Hepatitis C).
Pharmaceutical associations have raised concern over the implication of including patented drugs on the list.
The central government on Tuesday added at least 34 drugs to the National List of Essential Medicines (NLEM) 2022 and dropped as many as 26 from the previous list.
The NLEM 2022 contains a total of 384 drugs in comparison to 376 in NLEM 2015. The NLEM 2022 comprises 384 drugs across 27 categories.
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