The government ordered a 20 percent cut in Vitamin C price yesterday. The National Pharmaceutical Pricing Authority (NPPA) reduced the price of Vitamin C plain and coated from the current level of Rs, 526 per kg to Rs. 423 and Rs 419 respectively, while the price of sodium ascorbate has been slashed from Rs. 592 per kg to Rs 466. The NPPA has also increased the price of anti-amoebic bulk drug Iodochlorohydroxyqunioline from Rs. 740 per kg at present to Rs 764 per kg. Sarabhai Chemicals is the leading manufacturer of Vitamin C bulk and Jayant Vitamins discontinued the production a few years ago. Iodochlorohydroxyqunioline is being produced by East India Pharma and Atul.

The price cut of Vitamin C will certainly have an impact on Sarabhai. The company has been already hit by imports of the drugs for some time. A corresponding cut in the formulation prices would have a much serious impact of the Rs, 1,100 crore domestic multivitamins market dominated by MNCs. Major formulators in the segment include Glaxo-SmithKline, Pfizer, Abbott, Alembic and Wyeth Lederele. Vitamin C is available in the market both as single ingredient formulation as well as in combination form - with Vitamin B complex formulations and as an anti-oxidant in combination with Vitamin A and E. In the single ingredient segment, GSK's Celin is a key brand.