An increased number of medicines under price control will affect drug-maker GlaxoSmithKline Pharmaceuticals’ annual revenues by about five percent, the company said.
About 30 per cent of the company’s products, by value, are now under price control, compared to 24 per cent earlier.
Under the Government’s recently revised National Pharmaceutical Pricing Policy, the span of price control has been increased from the 74 to 348 drugs (covering about 650 formulations) in the National List of Essential Medicines.
In line with this revised policy and the Drug Price Control Order (2013), the Government has released revised price lists for medicines – and companies were given 45 days from the date of the directive to adopt the new prices. Companies and associations, though, have been approaching the courts seeking to be allowed to change prices on new stocks and not those already supplied to the market.
Supply constrains
Meanwhile, GSK’s performance in the three months ended June 30, 2013 (Q2), was also affected by supply constraints, across therapeutic segments, including vaccines.
This will recover in the second half of the year, Hasit Joshipura, Managing Director of GlaxoSmithKine (India) told Business Line .
GSK was recently in the news over a challenge on two patents involving lapatinib and its salt – sold under the brandname Tykerb – used in treating advanced breast cancer. While one of its patents was upheld by the Intellectual Property Appellate Board, the patent on Tykerb was invalidated. The company is expected to appeal this revocation.
Q2 performance
The company posted net profit of Rs 115 crore for the three months ended June 30, 2013. This was down about 30 per cent from net profits of Rs 163 crore clocked in the corresponding quarter of the previous year. GSK’s total income decreased from Rs 699 crore in the quarter last year to Rs 682 in the quarter under review, down about three per cent.