Nicholas Piramal India Ltd will focus more on value added Vitamin A derivatives and exports to counter the negative impact of the recent price cut by National Pharmaceutical Pricing Authority (NPPA) on vitamin A bulk. It is estimated that the company would suffer a loss of Rs. 2 crore for the year ending March 2004 as a result of the price cut, according to a company source.
"Citing a price cut in advance we had decided to increase the production of value added Vitamin A derivatives and increase our exports (bulk and derivatives) long before the actual cut took place. This will neutralize the negative impact of price cut in future," he said.
NPPA has cut the price of vitamin A acetate dry powder 1 mIU/gm from Rs. 4,166 per kg to Rs. 3,421. The price of vitamin A Palmitate 1 mIU/gm has been reduced from Rs. 3,188 per kg to Rs. 2,452 per kg. The company manufactured 153.06 mmu Vitamin A during last year. For the first six months of the current financial year, NPIL had net vitamin A sales of Rs. 41.5 crore of which Rs. 3.7 crore came from exports. "We hope to increase our exports to Rs. 10 crore for the year ending March 2004," he said.
The official said that a price cut on Vitamin A formulations is not going to impact much as the company manufactures only two vitamin A formulations - Supradyn and chewable Vitamin A tablets both of which, minor contributors to net Vitamin A sales of the company.
NPPA has revised/fixed the prices of 29 formulation packs on November 19, 2003. Prices have been fixed for the first time in the case of 27 formulation packs. In the case of 1 pack, the price has been revised downwards (-12.92 per cent), due to downward revision in the price of concerned scheduled bulk drugs. In other case, the price has increased by 17.44 per cent due to upward revision in the price of bulk drug used in formulations.