The prices of a number of widely used bulk drugs are declining in the market as the drug companies are cutting production of formulations anticipating a drop in the incidents of diseases in coming months. The bulk drug prices are also falling on account of lower prices in China, a major exporter of bulk drugs to India.

Ciprofloxacin, levofloxacin, gatifloxacin, amikacin, doxycycline, ofloxacin, Norfloxacin, gentamycin are some of the bulk drugs whose prices are down due to decreased demand. The prices may start rising only from March, according to bulk drug dealers.

The price of Ciprofloaxin, a widely prescribed the antibiotic reached Rs 1250/kg from Rs 1800/kg which was the price in May 2005. The price touched Rs 1375/kg in November 2005. The price of ofloxacin came down to Rs 2600/kg this month from November last year's price of Rs 3700/kg. In November, amikacin price rose to Rs 6395/kg from Rs 5150/kg (Apr '05) and ended at Rs 6100/kg in January this year. Similarly, Norfloxacin price has reached at Rs 910/kg this month from Rs 1250/kg (Apr '05).

Kiran Waghela, a Mumbai-based broker in bulk drugs said, "In January, the several antibiotic prices come down to very level. In view of Union budget in February-March, the companies hesitate to buy large stocks of bulk drugs, fearing price variation in post-budget period. As the Indian bulk drug industry is mainly dependent on China, the price variation in China directly affects the industry. Foreseeing a decrease in demand, Chinese manufacturers cut down prices drastically. The price of ofloxacin was $55-60/kg earlier and now it is quoting at $45/kg."

Last year, as Pharmabiz had reported, the prices of bulk drugs like ciprofloxacin, erythromycin and doxycycline soared high following the closure of major manufacturing facilities in China.