Views on NPPA - Update: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on NPPA - Update:

National drug price regulator NPPA has fixed the prices of 39 formulation packs including drugs used to treat diseases such as diabetes, infections, digestive disorders and pain among others. In a statement, National Pharmaceutical Pricing Authority (NPPA) said it "has fixed/revised the prices in respect of 39 formulation packs."

As per the notification, the price of formulations including Ciprofloxacin Hydrochloride, Cefotaxime, Paracetamol, Domperidone and Metformin+Glime has been fixed. These drugs which are put under the scanner have a market size of around INR 1054cr (MAT value). The reduction in the price ranges from 5-40% depending upon drug category. The move impacts multinational drugmakers like Abbott Laboratories and GlaxoSmithKline Plc, and a number of local firms including Lupin Ltd, Cadila Healthcare Ltd, Ipca Ltd and Sun Pharmaceuticals. The overall impact for the companies would be minimal as these drugs are not from significant portion of the overall sales of the company. Thus, we maintain our recommendations in the sector with ACCUMULATE on Sun Pharma, Aurobindo Pharma, Sanofi India and IPCA Labs.

Source : Equity Bulls

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