Blockbuster Brands Seen Under Dpco Ambit

The new Drug Price Control Order (DPCO) is likely to bring some blockbuster brands into its price control umbrella. Approximately 30 drugs are expected to come under the new DPCO.

Based on the criteria of a turnover in formulations of Rs 25 crore and a 50 per cent or more market share, and for drugs with a total sales of more than Rs 10 crore but less than Rs 25 crore, where a single brand has a market share of 90 per cent or more, will face rigours of price control.

The yet-to-be released list will be based on market research agency ORG Marg's 2001 data.

According to analyst estimates, Cipla's Ciplox and Ranbaxy's Cifran will both now come out of the purview of price control but since this segment of anti-infectives face acute competition, these drug prices should not see too much of an increase in prices.

Ranbaxy's Histac also comes off price control but the company is expected to benefit only marginally from this price rise.

Analysts believe that up to 80 per cent of Ranbaxy's portfolio is to be excluded from the new DPCO.

E Merck is also believed to have it multi vitamin Polybion to come off the price control. Reacting to this E Merck today rose by 10.30 per cent, closing at Rs 326.75.

Glaxo's Zinetac and Zevit along with SmithKline's Septran is expected to also exit the list. This pushed the Glaxo stock up by 8 per cent and closed Rs 367.30.

Among Indian companies, Wockhardt could see some exits from the DPCO along with Cipla. Among drugs that have now enter the list are Novartis India's Voveran which contributes nearly 20 per cent to the company's turnover. It enjoys 51.3 per cent of the diclofenac market.

Otrivin ,another Novartis product is also likely to see price control as it is enjoy a market share of 95 per cent in the xylometazoline market.

Aventis is also likely see some of its products entering the list like Daonil but will also see the exit of products like Novalgin. Pfizer's Dolonex perhaps will get included in the list.