Regulator hikes prices of domestic insulin, TB drugs

The National Pharmaceutical Pricing Authority (NPPA) on Wednesday increased the prices of 62 drugs, which are mainly based on indigenously manufactured insulin, giving a fillip to domestic pharmaceutical companies – mainly Wockhardt and Biocon.

These two are the only Indian companies that make and sell insulin in India, and their products are about a third cheaper than imported brands or those made from raw materials sourced from abroad. They have now been allowed to increase the prices of their insulin brands due to rising input costs. 

Although the price of insulin brands of these two companies will increase, they account for just 10 per cent of the market. So the impact will be felt only by a small proportion of insulin-dependent diabetes patients.

Despite the price increase, Wockhardt and Biocon's insulin brands will continue to be 18 per cent cheaper than competing products. 

The increase in the price cap of locally-manufactured insulin brands by up to 18.55 per cent follows a decision by NPPA last December raising the price cap on bulk drugs or ingredients used for making insulin by 16 per cent. The regulator has allowed a marginally higher increase in insulin price after factoring in rising conversion cost, packing charges, process loss and packing material. 

At present, the two Indian firms have a small share of the estimated 250-crore insulin market, with foreign drugmakers Danish company Novo Nordisk and American drugmaker Eli Lilly dominating the market.