News By Industry

News Stock Quote

Type Company Name
IPL 5 Streaming
You are here: ET Home News News By Industry Healthcare/Biotech
ANA Mumbai-Japan Flights
Direct Flights to Japan Everyday. You Can Book and
Purchase Online! : www.ana.co.jp
Ads by Google
MUMBAI: Fighting cancer has just become less expensive for millions of Indian patients. More than 12 years after he electrified the pharma industry by taking on
powerful global giants in his quest to supply cheap anti-AIDS drugs, Cipla promoter YK Hamied is back donning the role of a price warrior. This time, his attention is
on anti-cancer drugs.
On Thursday, Cipla cut prices of key cancer drugs by nearly 75%, an astounding, one-shot reduction that is certain to unsettle the industry and trigger a price war.
Kidney cancer drug Sorafenib (sold under brand name Nexavar by Bayer) will now be available at 6,840 for a month's supply, down from 28,000. Lung cancer drug
Gestinib (sold under brand name Iressa by AstraZeneca) will cost 4,250, down from 10,000, while prices of Temozolamide (sold by German pharma company
Schering), used to treat brain tumour, have been cut from 20,000 to 5,000.
"Yes we are cutting the prices; we are being humanitarian, but at the same time we are not doing any charity," Hamied told ET on Thursday. "Doctors in India link
the quality of drugs to the price of drugs; we want to remove that misconception," he added.
The move is expected to trigger a sharp reaction from other players in the 1,500-crore cancer drug industry and pose a serious challenge to multinationals who sell
patented, expensive drugs and Indian companies whose generic drugs are cheaper but not as cheap as Cipla's. Bayer, for instance, will not only have to contend
with Natco, but also Cipla, whose prices are now the cheapest.
"It's a smart move by Cipla. With this, they will reach many more patients, and will also be able to garner greater market share," said Anjan Sen, director-healthcare,
Deloitte Touche Tohmatsu India.
Cipla shares ended down 0.2% to 317.
One senior pharma company executive has already dubbed it "unethical", saying it is an attempt to weed out competition.
"Cipla is mimicking the HIV drug strategy in its anti-cancer drugs too. This can set a precedent for other drug companies and might force them to reduce prices," said
Kajal Bharadwaj, a New Delhi-based health activist.
Price Cuts Shouldn't Worry, Says Hamied
"We saw in HIV drugs that companies, in spite of price reduction, were able to make profits... that can happen in cancer too," Bharadwaj said.
In 2000, when global pharma companies were selling anti-retroviral drugs for $10,000-15,000 per patient/pa, Cipla shocked the pharma world by announcing a price
of $350per patient/pa, leaving no choice for other drugmakers but to cut prices. "AIDS is going to be a bigger holocaust in India than the earthquake. We're not
making money, but we are not going to lose money either," Hamied had said at that time.
4 MAY, 2012, 09.12AM IST, DIVYA RAJ AGOPAL,ET BUREAU
Cipla shocks rivals by slashing cancer drug prices up to 75%
Indiatimes | The Times of India | The Economic Times |
| Log In | J oin |
Follow
513k Like
More
Page 1of 2 Cipla shocks rivals by slashing cancer drug prices up to 75% - The Economic Times
5/4/2012 http://economictimes.indiatimes.com/articleshow/12987298.cms?prtpage=1
"With the average of the three prices, we should break even," he had said. ARV drugs are taken in three different doses, and Cipla announced next year that it
would sell the three drugs in one tablet, known as cocktail drug, for $800, triggering a price war and forcing other companies to react. The industry responded by
selling the drug at $931.
India has close to 2.5 million cancer cases every year, the World Health Organisation says, and the anti-cancer drug market is estimated to be 1,500 crore. "These
drugs anyway don't have a major contribution to Cipla's sales, but with this move the volumes will expand and Cipla would have achieved some technology
breakthrough that will help them to sell the drugs at a cheaper price," said Ranjit Kapadia, vice-president, Centrum Capital India.
Hamied said the price cuts should not worry anyone. "Every water finds its own level; drug prices will also find their own level. "We want to tell medical professionals
that good drugs, especially cancer drugs, can be affordable," he added.
The fact that the price cuts have come days before Hyderabad-based Natco Pharma is to launch its generic version of Bayer's Nexavar following a compulsory
licensing order from the court is not lost on the market.
"We will sell Sorafenib at the price fixed in the compulsory licence order," said M Adinarayana, company secretary of Natco. He did not comment on whether the
company would cut prices in the future.
Two months ago, the Indian government granted a compulsory licence to Natco to sell Sorafenib at 8,880. Compulsory licensing is a provision under which
governments allow generic drugmakers to sell patented drugs of innovator companies with certain restrictions. Cipla's current price is one-fourth the price fixed by
the compulsory licensing order. Cipla, interestingly, is fighting a patent infringement case over Sorafenib with Bayer in the Delhi High Court. The case comes up for
hearing at the end of this month.
"It's a very good humanitarian gesture, but also a very good business strategy for the long run. This move will help Cipla to be price-competitive and also make it
easier to use patent laws, especially compulsory licences," said Anand Grover, senior advocate, Lawyers Collective, an NGO that works on affordable drugs.
Download ET's mobile applications for iPad, iPhone, Android, BlackBerry, Nokia and Windows Phone to track news as it happens, live stock quotes, monitor portfolio, get
market stats like gainers, losers and movers & much more. To check out free Economic Times apps , Click here
Get a Quote
Type Company Name
Browse Companies
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | 1 2 3 4 5 6 7 8 9
Home | News | Markets | Personal Finance | Mutual Funds | Infotech | J obs | Opinion | Features | Videos | My Portfolio
IPL 2012:
IPL Teams 2012 | IPL Standings 2012 | IPL Videos 2012 | IPL News 2012 | IPL 2012 Opening Ceremony
Chennai Super Kings | Deccan Chargers | Delhi Daredevils | Kings X1 Punjab | Kolkata Knight Riders | Mumbai Indians | Pune Warriors | Rajasthan Royals | Royal Challengers Bangalore
Other Times Group news sites
Times of India |
| Mumbai Mirror
Times Now | Indiatimes
|

Living and entertainment
Timescity | iDiva | Bollywood | Zoom

Networking
itimes | Dating & Chat | Email
Hot on the Web
Vijaya Karnataka | Audi A4
IPL 2012 | IPL T20 2012
Restaurants in Mumbai | IPL
Scorecard 2012
Services
Book print ads | Online shopping | Business solutions | Book domains | Web hosting
Business email | Free SMS | Free email | Website design | CRM | Tenders | Remit
Cheap air tickets | Matrimonial | Ringtones | Astrology | J obs | Property | Buy car
Bikes in India | Online Deals
About us / Advertise with us / Careers @ TIL / Terms of use / Privacy Policy / Feedback / Sitemap / Code of Ethics Copyright2012 Times Internet Limited. All rights reserved.

Page1 of 2
Prev Next
Page 2of 2 Cipla shocks rivals by slashing cancer drug prices up to 75% - The Economic Times
5/4/2012 http://economictimes.indiatimes.com/articleshow/12987298.cms?prtpage=1