Why are insulin makers crying foul over NPPA order?

Moneycontrol Bureau

In an attempt to bring down the price of insulin, the National Pharma Pricing Authority (NPPA) has issued a directive saying all brands selling the drug must do so at a common price. The blanket ceiling on prices would ensure there are only two prices for insulin — one for domestically manufactured insulin and the other for imported insulin.

Price at which you can buy insulin packs

The price of domestic insulin will be available between Rs 135.12 and Rs 144.80. A small pack will cost less than a big pack. Price for imported insulin has been fixed in the Rs 160.26 to Rs 200.01 range, depending on the size of the pack.

Who are the players

Major players in the segment include Novo Nordisk, Eli Lilly and Sanofi. Domestic names include Biocon and Wockhardt  . Biocon   had recently signed an agreement with Bristol-Myers Squibb Co for its oral insulin drug.

Why is the Industry upset

The NPPA directive has left the industry upset as price- capping is expected to erode margins of drug manufacturers. Many manufacturers feel that the government is being partial to the multinational companies, whose drugs can be sold at higher prices than doemstic companies. They feel price discrimination between domestic and imported insulin packs will severly hit the domestic manufacturers. These companies are planning to appeal to the Prime Minister's Office to intervene in the matter.

Why is insulin used

Insulin controls the central metabolic processes. Failure of insulin production leads to a condition called diabetes mellitus. There are two types of diabetes type 1 and type 2. Patients with Type 1 diabetes depend on external insulin, commonly injected subcutaneously, for their survival. Patients with Type 2 diabetes are treated with drugs to reduce their blood sugar. They may eventually require externally supplied insulin if other medications fail to control blood glucose levels adequately.

Currently, there are no insulin tablets available in India and patients with diabetes who need insulin -- a naturally occurring protein that controls blood sugar -- must inject it.