Falling kidney transplant operations in the country seems to have hit Novartis India's transplant drug business in the country, according to the company's senior executives. The increased scrutiny from regulatory authorities after several kidney scams in the country has reduced the number of kidney transplant operations in the country. "The recent exposure of kidney scams and subsequent panic by hospitals and patients has very well reduced the number of kidney operations in the country, which is affecting our business," said Anil Matai, CEO, Pharmaceuticals, Novartis, India.

According to Devinder Ahuja, the Marketing Head at the company, the number of kidney transplant operations have been reduced to about 2,500 this year compared to last year's 3,000. "As Novartis controls 73 per of the market, the company's business in the segment is expected to be hit in this financial year," said Matai.

Novartis India is currently the market leader in the post transplantation adaptive drugs category with top quality brands like Sandimmun Neoral and Mycotic under its stable. The other players in the segment are RPG Lifesciences and Merck.

According to the officials, the company does not sell its transplant drugs by the domestic trade channel. "We sell the product directly to the customer. On receiving the requirement of the customer in advance, we import the drug from abroad," said Matai. The cost of these drugs range between Rs.10, 000 and Rs. 1,00,000.

Novartis India imported these drugs in Swiss Francs. The recent appreciation of Swiss Franc against the Rupee by 18 per cent made the company to pay more in Indian currency for the same amount of products traded. This factor has also hit the company's transplant drug business. In order to counter the threat, Novartis has shifted the currency to dollar from Swiss Francs.