The downward revision of Rifampicin prices by the NPPA has hit Novartis' generics division badly bringing down its generics business by 18 per cent to Rs. 99.6 crore for the financial year 2002-03 compared to the year ago value of Rs. 116.3 crore. Rifampicin and its formulations form 90 per cent of Novartis' generic products. The NPPA had effected a 20 to 41 per cent cut in the rifampicin prices during September, 2002.

According to the company sources this downward revision in prices was laid despite the fact that anti-TB sector was lying stagnant hit by immense competition. Moreover, the government has lifted the import ban on rifampicin and its intermediates, gripping Novartis' throat further. The company now sense further damage as a result of intense competition following the move. "As it is the market forces have well grounded us. On top of this we can sense the matters further worsening from the cheaper Chinese imports," said Suresh Advani, vice-president, Generics, Novartis. Currently the product is priced between Rs. 3,400-Rs. 3,700 from the earlier price which was upwards of Rs. 4,000. Most of the generics business is under price control.

Despite the fact that the company has been hit in the anti-TB segment, its products were still the market leaders in the segment for the year 2002-03. Its key product in the segment PZA Ciba garnered a market share of 39.4 per cent retaining the No. 1 position in the segment. Other products Registrone, Rimanct and 4D retained second, third and third positions in their respective segments.

The company has readopted its erstwhile brand name Sandoz atop all its generic brands. In other words, across all its generic brands, Sandoz name will be highlighted instead of Novartis. Rimstar 4 FDC, Rimcure 3FDC and Rimnax 2FDC will be Novartis' new launches in the anti-TB segment and Regera in the gynaecology segment during the current year. The future would very much on the policies on the government front. Advani emphasized on a lot of cost cutting moves and consolidation on the gynaecology front to counter the brickbats it has been receiving off late on the Rifampicin front. "We are evaluating the government policy on Rifampicin and also looking at other alternatives to counter the problem," he said.