Glenmark Pharma slides amid buzz of DCGI notice on overpricing FabiFlu

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Glenmark Pharmaceuticals fell 3.52% to Rs 414.80 after the media reported that India's drug regulator has accused the company of overpricing of coronavirus drug FabiFlu.

According to media reports, the Drug Controller General of India (DCGI), the apex body to approve and regulate drugs in India, has sent a letter to Glenmark Pharmaceuticals, accusing the company of selling its newly-approved Covid-19 drug, favipiravir, at an unreasonable price through false claims.

Drug Controller General (India) VG Somani in a letter dated July 17 has reportedly asked for a clarification on the matter for taking necessary action.

Somani, in the letter, referred to the representation and said, "it has been mentioned in the representation that Glenmark has also claimed that this drug is effective in comorbid conditions like hypertension, diabetics, whereas in reality as per protocol summary, this trial was not designed to access the Fabiflu in comorbid condition." "In view of this, you are requested to provide your clarification on the above points for taking further necessary action in the matter," the letter reads.

Last month, Glenmark Pharmaceuticals launched antiviral drug Favipiravir, under the brand name FabiFlu, for the treatment of mild to moderate COVID-19 patients. Priced at Rs 103 per tablet, the prescription-based drug will be available as a 200 mg tablet at an MRP of Rs 3,500 for a strip of 34 tablets.

Glenmark's consolidated net profit surged 36.3% to Rs 220.31 crore on 7.3% rise in net sales to Rs 2,711.27 crore in Q4 March 2020 over Q4 March 2019.

Glenmark Pharmaceuticals is a global research-led pharmaceutical company with presence across Generics, Specialty and OTC business with operations in over 50 countries. Glenmark's key therapy focus areas globally are respiratory, dermatology and oncology.

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