Pharma Drug Policy - Moderate Impact: Already Priced-In - Emkay

- GoM recommended that the retail price of essential 348 drugs will be fixed at weighted average price of brands that have more than 1% market share

- Proposed policy will cover 30% of the pharmaceutical industry and will bring down the average prices by about 10%

- It is still not clear that how the companies can take the price increase in the molecules which are under price control. Price increase formula will decide if the impact is one time or permanent in nature.

- Maximum impact will be on MNC Pharma companies like GSK and Pfizer, having impact of 15-20% on FY13 EPS followed by Indian companies, like Cipla, Cadila & Ranbaxy each having 5-7% impact on FY13 EPS. Rest of the companies will have 2-3% impact on the EPS.

Source : Equity Bulls

Keywords