Novartis has sickly pallor

Novartis has a sickly pallor today morning. The stock opened some Rs.4 lower and went on to hit an intra day low at Rs.651.25, down over 4%. It has recovered since then but remains over 2.5% lower.

The stock is down on news that the National Pharmaceutical Pricing Authority (NPPA) has imposed a fine of around Rs 300 crore on the company for overcharging consumers on sale of Voveran, its best-selling painkiller medicine. NPPA has also issued a showcause notice to the company, asking it to come up with an explanation in two weeks as to why action should not be taken against it.

This drug, Voveron uses a component, diclofenac, which is under the government's direct price control.