NPPA's move to positively impact insulin sales: Biocon

Local pharma companies Wockhardt and Biocon have been permitted to increase their insulin brand prices by the drug price controller.

Speaking to CNBC-TV18, Kiran Mazumdar Shaw, chairman and ,managing director of Biocon said," I am glad that NPPA has given us this price increase. It still puts us at a discount to other multinationals and importers of insulin but at least one step at a time." "This means that we will be able to enjoy a price increase of around 18%," she added. The company is hopeful that this move will help them to increase margins in April-June quarter and it will positively impact insulin sales. Biocon expects to become a significant player in the insulin business in the next three-four years. Below is the verbatim transcript of Shaw's interview with Latha Venkatesh and Gautum Broker of CNBC-TV18. Also watch the accompanying video. Q: What this means for Biocon? How much will prices go up by and will that mean an improvement in revenues and margins? A: This means that we will be able to enjoy a price increase of around 18%. We have been lobbying for this particular issue from a long time because we want a level playing field. What we are seeing in the market place is that the multinational companies and importers of insulin have always enjoyed a much higher price from National Pharmaceutical Pricing Authority (NPPA) than Biocon and Wockhardt as indigenous producers of insulin. This was absolutely not creating a just level playing filed for us. We felt that we were almost being kind of handcuffed into containing our marketing efforts. I am glad that NPPA has given us this price increase. It still puts us at a discount to other multinationals and importers of insulin but at least one step at a time. Q: This is just one-off increase that has been allowed. It will not allow you to adjust for future increases in insulin that will be a separate decision for which you will have to apply? A: Raw material prices have been on an increase and of course with various kinds of changing dynamics globally we will have an opportunity to revise prices but that