The National Pharmaceutical Pricing Authority
(NPPA) has increased prices of 62 drugs, including human insulin,
giving a boost to local manufacturers. The NPPA has increased the price
of locally-manufactured human insulin by up to 18.55 percent after
considering the rising conversion cost, packing charges, process loss
and packing material.
Mr Sameer Savkur, managing director of IMS Health Information and
Consulting Services India, says, “Price revisions are on account of the
increase in product input costs. These are reviewed by NPPA on an
ongoing basis, and revised as thought necessary for all molecules and
formulations under price control.” The price increase will help the
local insulin manufacturers – namely Biocon and Wockhardt who account
for nearly 10 percent of the total insulin market of
Multinational firms have over 75 percent of the marketshare, including
Novo Nordisk and Eli Lilly, which have 53 percent and 22 percent
To overcome competition in the local market, indigenous insulin
manufacturers have entered into global alliance with several US
companies. In February, this year, Wockhardt entered into a strategic
global alliance with US-based Sheffield Bio-Science, under which the
latter will have exclusive sales and distribution rights to supply
recombinant insulin to the cell culture markets.
In October, last year, Biocon signed a mega marketing deal with Pfizer
to globally commercialize biosimilar versions of Insulin and Insulin
analog products: Recombinant Human Insulin, Glargine, Aspart and
Lispro. According to the deal, Pfizer will make upfront payments worth
$200 million. Biocon is also eligible to receive additional development
and regulatory milestone payments of up to $150 million and will
receive additional payments linked to Pfizer’s sales of its four
Insulin biosimilar products across the global markets.
The price increase from NPPA and the global alliance with US companies
will definitely boost insulin sales and earn revenue for the companies
in the near future.