Pharma companies in the red

Pharma companies are not doing too well today morning with Glenmark, Dr.Reddy, Lupin, Cipla, Ranbaxy, all in the red. Glenmark is amongst the top losers in the sector, down over 2.2% at Rs.564.60. It has hit a new 52-week only yesterday at Rs.580.

The pharma stocks have slipped into the red today after the after the government formally notified a new Drug Pricing Policy, which will cut down prices of life saving essential drugs by almost 80%. The new policy will increase the list of drugs which will fall under “essential”. This means that domestic as well as international drug prices, which today sell at higher prices, will have to cut down the costs drastically thus hitting their margins.

Prices of some 348 drugs will get cheaper and this will include anti-cancer and anti-infective. Earlier, only 74 drugs were under the drug price policy.