Competition in pen insulin mkt to get stiffer with Allstar

French drug-maker Sanofi is looking to re-establish itself in the Indian re-usable insulin pen market with its new "Allstar". While Sanofi is betting on an aggressive pricing strategy to drive sales, it faces an uphill task, reports Archana Shukla of CNBC-TV18.

The AllStar is Sanofi's latest attempt to take the Indian reusable insulin pen market by storm but it's not just banking on better technology to attract customers. Sanofi says that for the first time, these pens will be manufactured in Gujarat giving Sanofi a significant cost advantage.

Shailesh Ayyangar, MD, Sanofi India, says that the product has been developed with collaborations of five countries and a lot of studies has been done. It delivers accurate doses and is a next generation pen.

We are pricing it at Rs 650, about 20% lower than the market. But this cost advantage may not amount to much.

At Rs 650, AllStar joins the list of comparable reusable insulin pens, all priced between Rs 500-700. But Danish firm Novo Nordisk's NovoPen4 dominates with a 60 percent market share, followed by Eli Lily -- and both are at the top end of the price-band.

Now rivals like Eli Lily are also looking at local tie-ups to bring costs down but market leader Novo Nordisk says this market is all about the first-mover advantage, and not so much about costs.

Melvyn D'Souza, MD, Novo Nordisk, says that I don't think prices are a big advantage for anybody. We have been in the market for many years in pen category. We are the only company which makes its own insulin, pens and needles. Patient has the comfort of having a uniform technology across the usage.

Experts say that Sanofi's path will be tough, mainly because buying the pen is a one-time event and it's the insulin cartridges that make up real sales. So given non-compatibility between brands, most patients will stick to the brands they already use. However, Sanofi is looking to increase its Rs 380 crore diabetes business by even giving the AllStar free to needy patients, in an effort to build brand recognition.