Pharma companies sulk as prices go down

Abbott Healthcare, Lupin, Alembic, Alkem Labs, Novartis and many more such pharma companies are trading in the red. Cipla and Sun are just about holding onto the green.

It is always seen, what is good for the peopleis not good for the market. If prices are reduced, the markets sulk while people rejoice.

In a sweeping move yesterday, drug price regulator National Pharmaceutical Pricing Authority (NPPA), capped price of 56 important medicines used in treatment of cancer, diabetes, bacterial infections and blood pressure. This has resulted in price of these drugs coming down by an average of almost 25%.

On the other hand, NPPA has also increased prices of some of the smaller volume packs of commonly used intravenous fluid such as glucose and sodium chloride injections.

Companies are allowed to hike prices of such drugs by up to 10% in a year.