Pharmaceutical sector shares fall after price control order

Pharmaceutical sector shares fall after price control orderThe shares of pharmaceuticals companies recorded a fall today following an order by the Department of Pharmaceuticals that would put price control of drugs and make them cheaper in the country.

According to the latest information available, the prices of 652 formulations under 27 therapeutic areas like anti-allergic (cetrizine), cardiac (aten), gastro-intestinal medicines (ocid), pain-killers (paracetamol) and anti-diabetic drugs (insulin) are expected to come down in the country following the government order.

The Drug Price Control Order (DPCO) 2013 might also cover anti-fungal, anti-tuberculosis, anti-leprosy, anti-hypertensives and cancer drugs. Some say that the prices of cancer drugs mightcome down by as much as 80 per cent in the country. Experts say that the order will place about 17-18 per cent of the Indian pharmaceutical market valued at about Rs 70,000 crore under the price control mechanism.

The new prices will come into effect on 1 July 2013 across the country. Firms like GSK Pharma, Cadila, Glaxo and Cipla are likely to be impacted with the price control in a major way. Sun Pharmaceuticals, Lupin, Torrent and DRL will be lease affected by the price control measures.

Glenmark Pharma shares lost 2.11 per cent, Cadila Healthcare fell 1.89 per cent, Dr Reddy's Laboratories were trading 1.59 per cent lower, Ranbaxy Laboratories fell 1.37 per cent, Wockhardt declined 1.16 per cent and Biocon recorded a fall of 0.68 per cent at the stock markets this afternoon.