Pharma major Dr Reddy’s Laboratories Ltd said the new pricing policy might impact 3-4 per cent of its finished dosage sales in the domestic market.
The Department of Pharmaceuticals had notified the Drug Prices Control Order 2013, which came into effect from May 15. It covers 348 medicines including the some life-saving drugs and provides for up to 80 per cent reduction in drug prices.
“At a company level, we were aware of the upcoming policy and have factored in the impact and plans in place to ride over this impact,’’ K Satish Reddy, Vice–Chairman and MD, Dr Reddy’s, said in a statement on Friday.
The pricing policy was ‘welcome’ as the consumer would stand to benefit with lowered prices of medicines, Reddy said.
“However, there is a need for the Government to balance the interests of improving affordability of medicines with growth for the Indian pharmaceutical industry which is heavily dependent on investments into R&D,’’ he added.
Meanwhile, some other companies do not see much impact. “I don’t think there will be big impact. It is applicable only to some categories of drugs and their producers,’’ P. Bhaskara Narayana, Chief Financial Officer, Natco Pharma, told Business Line .