DPCO’13 impacts July growth

The ceiling prices announced on June 16 for the first batch of products falling under Drug Pricing Control Order (DPCO 2013) have already had an impact for several companies. Although the implementation date was from August 2 onwards for the first batch (45 days from June 16), the revised prices have also affected overall IPM growth in the month of July, according to an analysis by market research firm AIOCD Pharmasofttech AWACS.

According to Ameesh Masurekar, Director, AIOCD Pharmasofttech AWACS, for certain companies the impact of DPCO has been significantly higher – both due to percentage coverage of products under DPCO where ceiling price has been announced and due to their products / brands being above the ceiling price.

For example, Mankind Pharma, the DPCO products grew by 20.3 per cent, as almost all of them are below the ceiling price, while for Ranbaxy, the DPCO products registered a de-growth of 28.1 per cent as most of them were above the ceiling price. Overall ceiling price has been already declared for 10 per cent of the industry turnover – with another 7-8 per cent products – the ceiling price is expected in coming weeks.

Below is the impact of ceiling price declared products basket vs. the balance portfolio – overall for the industry and for top companies

Below is the chart by therapy area, along similar lines of bifurcation of products where DPCO ceiling prices have been declared, versus the rest of the portfolio

EP News Bureau – Mumbai