The ban on cough syrup Corex by the Indian government, will hit Pfizer India hard, the Indian arm of US pharmaceutical giant said on Monday.
Reacting to the ban, which was announced last week and includes 349 other drugs, Pfizer India stock plummeted at the bourses by 9 per cent and closed with a loss of 8.67 per cent at Rs 1,760.80 on the BSE. On March 10, the Ministry of Health had prohibited the manufacture, sale and distribution of 350 fixed dose combinations over safety concerns.
“The prohibition is likely to have an adverse impact on the revenue and profitability of the company,” the company said in a statement. “Corex recorded a sale of Rs 176 crore for the nine months ended December 31, 2015.”
In financial year 2014-15, Pfizer Ltd reported a sales turnover of Rs 1,853 crore and net profit of Rs 70 crore.
According to AIOCD Pharmasofttech AWACS Pvt Ltd, a pharmaceutical market research company formed by All Indian Origin Chemists & Distributors, Pfizer India will bear an impact of Rs 368 crore on account of the ban, which is nearly 13 per cent of its revenues.
In a filing to the stock exchange, Pfizer said: “In view of this (ban), the company has discontinued the manufacture and sale of Corex with immediate effect. Corex has a well-established efficacy and safety profile in India for more than 30 years, and Pfizer makes every effort to maintain the highest standards of regulatory and quality compliance in the manufacture and distribution of Corex. The company is exploring all available options at its disposal.”
According to agency reports, Pfizer India on Monday moved the Delhi High Court challenging the ban, and the court has stayed the government’s order. A Pfizer spokesperson could not be reached for comment.
AIOCD Pharmasofttech AWACS said the other brands that will bear the brunt of the ban include Phensedyl of Abbott India, and Panderm Plus of Macleods Pharma. These two companies will witness an adverse impact of Rs 485 crore and Rs 370 crore. Their revenue will be eroded by 15.39 per cent and 13.07 per cent respectively, the research firm said. Abbott India stock closed with a loss of 0.68 per cent at Rs 4,884 on the BSE.
The Indian pharmaceutical companies that will see their revenue depleting due to this ban include Mankind Pharma, Alkem, Ipca, Glenmark and Wockhardt.
