The ban on cough syrup Corex by the government among 350 other drugs will hit Pfizer India hard, the Indian arm of the U.S. pharmaceutical giant Pfizer said on Monday.
Reacting to the ban, which was announced last week, Pfizer India stock plummeted 9 per cent and finally closed with a loss of 8.67 per cent at Rs 1,760.80 on the BSE.
The Ministry of Health had on March 10, 2016, prohibited the manufacture, sale and distribution of 350 fixed dose combinations over safety concerns. The ban will impact Pfizer’s brand Corex, the company said.
“The above prohibition is likely to have an adverse impact on the revenue and profitability of the company. It may be noted that Corex recorded a sale of Rs 176 crore for the nine months period ended December 31, 2015.”
According to AIOCD Pharmasofttech AWACS Pvt. Ltd, a pharmaceutical market research company formed by All Indian Origin Chemists & Distributors Ltd, Pfizer India will bear a pact of Rs 368 crore on account of the ban, which is nearly 13 per cent of its revenues.
“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,” Pfizer said in a filing to the stock exchange.
“The company is exploring all available options at its disposal,” it added.
According to 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 confirmation and comment.
AIOCD Pharmasofttech AWACS said 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 due to the ban. Their revenue will be eroded by 15.39 per cent and 13.07 per cent, 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 pharma companies that will see their revenue depleting due to this ban include Mankind Pharma, Alkem, Ipca, Glenmark and Wockhardt.
