Pyrantel pamoate price revision may not boost Ipca bottomline

Mumbai, January 20: | Updated: Jan 21 2002, 05:30am hrs
Even as the National Pharmaceutical Pricing Authority (NPPA) has announced a 12.6 per cent upward price revision in pyrantel pamoate, the fortunes of Ipca Laboratories are unlikely to look up since the formulation continues to be under price control.

Analysts, however, said that Ipca Laboratories being the sole manufacturer of the said drug is eligible to add five to 10 per cent to its formulation price.

The company produces the formulation of pyrantel pamoate -- a drug belonging to the anthelmintic segment -- in tablet form as well as suspension form under the brand name Nemocid.

The drug is used for paralyzing the pyrantel acts on the nervous system by pinworm, roundworm and hookworm.

NPPA has revised the price of bulk drug pyre-ntal pam-oate from Rs 1,148 per kg to Rs 1,393 per kg vide notification on January 11, 2002.

The price has been revised under the provisions of DPCO, 1995 after conducting a comprehensive cost-cum-technical study of the said bulk drug, the NPPA notification stated.

Company officials said that though the drug contribution to the company’s topline is negligible at around Rs 1.5 crore per annum, the company is evaluating the benefits that may accrue with the upward revision in the bulk prices.

Moreover, it has been one of the oldest products witnessing negative growth over the last few years, officials added.

Ipca Laboratories had posted a net profit of Rs 18.09 crore on a turnover of Rs 230.56 crore for the first half ended September 2001.

Analysts said that the company is in the process of changing its long-standing tag of being a leading manufacturer of anti-malaria drugs to a multi-therpeutic drug company. It is the largest Indian manufacturer of the anti-malarial bulk drug -- chloroquine phosphate.

Ipca is a government recognised trading house with over 60 per cent of its turnover coming from speciality formulations such as anti-malarials, anti-emetics, anti-hypertensives, antibiotics and other drugs.