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News: The NPPA has fixed the retail price of 65 drugs and revised the price cap for 20 formulations. It has also revised the ceiling prices of 7 other drugs to include the impact of the 0.005% increase in drug prices in the National List of Essential Drugs (NLEM), based on the changes in the wholesale price index (WPI) for 2024. Prices have been fixed for drugs indicated for type 2 diabetes, high cholesterol, bacterial infections, painkillers and the drugs with revised ceiling prices are vaccines for rabies, tetanus and measels among others.
Views: Pharmaceutical companies like Sun Pharma, Lupin, Zydus, Mankind, DRL, Ipca etc. who manufacture these drugs, may see some cap in margins and profitability due to the fixation in price of drug formulation by NPPA-approved ceiling prices. However, since these regulated medicines do not represent a significant portion of their overall revenue, the impact on their financial performance is likely to be limited.
Impact: Neutral