Ciprofloxacin Formulation Price Cap To Hit Pharma Majors

The first-time notification of a ceiling on ciprofloxacin formulation prices is likely to affect the bottomline of several pharmaceuticals majors, including Ranbaxy, Cipla, Nicholas Piramal, Bayer India, Dr Reddys and Torrent Pharma.

The new prices are lower than the existing market prices and have been notified for the first time since ciprofloxacin was brought under the Drug Price Control Order (DPCO) in 1995.

For example, the notified price is Rs 59.72 for a pack of ten 500 mg ciprofloxacin tablets in an aluminium strip pack and Rs 59.42 in a blister pack, exclusive of duties and taxes. The current market prices of the tablet of the same dosage vary from Rs 54.95 to Rs 86.98.Ceilings have also been fixed on other dosage forms like eyedrops, eye ointment and intravenous infusion. The ceiling price for a 250 mg tablet is Rs 30.96 for a pack of 10 and Rs 18.08 for a 750 mg tablet in a pack of two.

 

As a bulk drug, Ciprofloxacin HCl has a maximum retail price of Rs 4,190 per kg under the DPCO. Ciprofloxacin formulations, used as broad spectrum anti-biotics, are available in dosage form as tablets of 250, 500 mg and 750 mg, eye ointments, eyedrops and intravenous infusion. For eyedrops, the price of a 10 ml vial will be Rs 5.94.

The 500 mg dosage in tablets is prescribed for enteric fever, severe lower respiratory tract infections, complicated urinary tract infections, and ENT infections and bone and joint infections.

According to preliminary estimates, Ranbaxy, Alembic Chemicals, Cipla, Bayer and Nicholas Piramal will be affected as their prices are well over Rs 75 per 500 mg pack. The drug contributes Rs 45-50 crore to Ranbaxys turnover of Rs 876 crore. and Rs 30-35 crore. to Ciplas turnover of Rs 361 crore.

Ranbaxys Cifran sells at Rs 84.79, while Ciplas Ciplox is priced at Rs 78.90. Alkems Alcipro costs Rs 78.50, Bayers Baycip costs Rs 86.98 and Nicholas Piramals Quinobact is priced at Rs 75.65.

In the infusions category, the price fixed for a 50 ml vial is Rs 9.70. Cifran infusion of Ranbaxy costs Rs 30, Ciprobid infusion of Cadila is priced at Rs 20 and Penquin infusion of Hindustan Antibiotics Ltd costs Rs 34.35.

The governments move has been in the offing for some time. Several pharma companies have pleaded against the move, arguing that ciprofloxacin does not fulfil the criteria for coming under DPCOs purview.

DPCO rules state that a drug can be brought under price control only if it has an annual turnover of Rs 4 crore and has a monopoly in the category. If there are at least five bulk drug producers and 10 formulators making a drug, with none having more than a 40 per cent marketshare in the retail trade, they are excluded from DPCO.

Industry sources said they would move the government again to repeal the notification and expressed confidence that they would get a favourable order.