Hepatitis-B Makers Feel Heat From New Players

With the entry of more players into the Hepatitis-B vaccine market, existing manufacturers in the country are witnessing intense pressure on their margins. According to the industry estimates, prices of the vaccine, which have come down by more than 50-60 per cent in the last two years, are likely to fall further.

In August 1997, when Hyderabad-based Shanta Biotechnics launched the first indigenous Hepatitis-B vaccine, SmithKline Beecham was the only multinational that was marketing the vaccine in India. At the time of launch, Shanta fixed the price of the vaccine at an aggressive Rs 1,800 per 10 ml pack (10 adult doses) to give a serious competition to the multinational.

 

Since then, about 10 companies have entered the market. The list includes Bharat Biotech, Pfizer, Wockhardt, Cadila, Panacea Biotech, Alkem, Serum Institute, Biological E, etc. While some of these companies are importing the vaccine, others are have their own manufacturing facilities in the country.

The entry of new players resulted in heavy price cuts. Currently, the price of the vaccine is between Rs 550 and Rs 900 per 10 ml pack. Three months back, some companies have sold the pack in a price range of Rs 800-Rs 1,300.

According to an industry watcher, the prices are expected to fall further. He said, "The net realisation value from the vaccine has come down drastically. It has become a commodity drug and the companies are not enjoying good margins through the vaccine."

Moreover, the fall in the prices is mainly benefiting the doctors as many of the companies, due to sheer competition, are offering the vaccine packs in large proportions at free of cost. Nobody knows how much of this is passed on to people.

The competition has also resulted in under-utilisation of the capacities. The total size of the Hepatitis-B market was about 25 million pediatric doses in the year 2000-01. This is expected to go up to 32 million doses this year. Compare this with the fact that two facilities in Hyderabad have a combined capacity of more than 100 million paediatric doses per annum.

The industry feels that high growth rates are possible in the sector, only if the Central government decides to include the vaccine in the universal immunisation programme.