Exceptional measure! National Pharmaceutical Pricing Authority allows 50% PRICE HIKE on THESE DRUGS; formulation making companies shares surge up to 10%
In a major development, the National Pharmaceutical Pricing Authority (NPPA) has allowed to increase the prices of Carbamazepine, Ranitidine and Ibuprofen drugs by 50 per cent, stating that its a one-time hike as an exceptional measure.
In a major development, the National Pharmaceutical Pricing Authority (NPPA) has allowed to increase the prices of Carbamazepine, Ranitidine and Ibuprofen drugs by 50 per cent, stating that it’s a one-time hike as an exceptional measure.
The authority allowed an upward revision of the ceiling price of nine formulations of three drugs, these drugs are low-priced. It added, these drugs have been under repeated price control and are used as the first line of treatment.
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Carbamazepine is used alone or in combination with other medications to control certain types of seizures in people with epilepsy; Ranitidine reduces the amount of acid in the stomach, used for indigestion and acid reflux, and Ibuprofen is a painkiller that acts for a range of aches and pains.
The NPPA also exempted Torrent Pharma’s Tapentadol Nasal Spray from price regulation for 5 years. The scrip surged around four per cent to Rs 3038 per share on the BSE intraday trade today.
The formulation-making companies such as Granules India, IOL Chemicals, JB chemicals, Strides Pharma, and Vinati Organics among others have been trading at day’s high level with the majority of them have hit their new life high levels.
Individual basis, IOL Chemical surged most by around 10 per cent, followed by JB Chemical by over eight per cent, Vinati Organics surged near five per cent, Granules India grew by three and a half per cent on the BSE intraday trade today.
The market analyst Siddharth Sedani said, this 50 per cent price rise in products will be directly impacted profitability, whenever realization happens. He added, this move will also have a huge impact on all the formulation making companies in the profit/loss segment
Sedani being bullish on Vinati Organic says this is a spectacular company in speciality chemical making space and it’s a must-buy stock.
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