Price implementation under DPCO 2013 to impact profits: Wyeth

Govt on May 15, 2013 notified DPCO, 2013 bringing into effect a new drug pricing policy applicable to 348 formulations listed in NLEM

Drug firm Wyeth Ltd today said its revenue and profitability will be adversely impacted by the implementation of the new prices of its medicines as notified by the government under the new drug pricing policy.

Government of India on May 15, 2013 notified the Drugs (Prices Control) Order, 2013 bringing into effect a new drug pricing policy applicable to 348 formulations listed in the National List of Essential Medicines (NLEM), Wyeth said in a filing to BSE.

"Companies have to implement the new price on the 46th day from the date of price notification. This will adversely impact the revenue and profitability of the company," it added.

The government has notified the ceiling price for 270 formulations as of now, with the balance notifications expected shortly, Wyeth said.

The company had included this information in its financial results for the quarter ended June 30, 2013, it added.

The company had reported a 43% dip in net profit at Rs 22.18 crore for the first quarter ended June 30, 2013 from a net profit of Rs 38.92 crore for the same period previous fiscal.

Total income of the company also declined to Rs 167.08 crore for the quarter ended June 2013 as against Rs 168.40 crore for the same period year ago.

Wyeth Ltd is a subsidiary of Pfizer Inc in India.

Shares of Wyeth Ltd were today trading at Rs 652.25 per scrip in the afternoon trade on BSE, down 1.04% from its previous close.