Company Watch

Novartis India to expand its gynaecology portfolio

Usha Sharma - Mumbai

Novartis India is in the process of expanding its gynaecology product portfolio in India. The products are in various phases of finalisation and they are soon expected in the domestic market. The government is continuing its focus on economic reform and is increasing investment in healthcare segment. It is expected that it will sustain the pharma products market growth. In the current financial budget 2008-09 announcements, the finance minister's reduction of excise duty on pharma products is a step in the right direction. However, the pharma industry continues to face challenges in the form of uncertainties related to the unprecedented delay in the introduction of the Drug Price Control Order (DPCO). Ranjit Sahani, vice chairman and managing director, Novartis India, said, "We are continuously investing good amount for expanding our Over to Counter (OTC) segment. Gynaecology does not fall under the DPCO scanner, and we already have products like Methergin and Syntocinon products in this therapeutic segment. We are aiming to increase our total sales revenues in the domestic market and have planned to increase the gynaecology product portfolio in the near future."

The company's gynaecology segment of the business continues to perform better despite competitive pressure from newer molecules.

As uncertainty over introduction of the New Drug Policy 2002 continues, the Group of Ministers has set up government for this purpose to make their recommendations.

The proposal in its current form envisages increasing the scope of price control from 74 to 354 additional drugs on a cost plus basis. During April 2007, the National Pharmaceuticals Pricing Authority (NPPA) reduced its internal ceiling norms on price increase for decontrolled formulation from 20 percent to 10 percent during a 12 month period. Because of DPCO scanner total 20 percent of pharma products falls in that category. At present, Novartis India's two products are under DPCO which affects nine percent of its business. If the proposed list of 354 products comes under DPCO, then 70 percent of the company's business will be under price control.

u.sharma@expressindia.com