Cipla cuts prices of cancer drugs in India

Domestic pharma major Cipla may extend its "affordable and humanitarian" pricing strategy on other anti-cancer drugs in its portfolio, even as domestic generic companies are still trying to grapple with the huge cuts and evaluate their pricing options. Cipla, the second largest pharma company in India by value, fired the first salvo by reducing prices of its three key anticancer drugs between 59 to 76%, used in treating brain, lung and kidney cancer, on Thursday. Industry experts said Cipla's move will trigger a reevaluation of portfolio and prices in the oncology segment for all companies competing in this space. Besides, it will also help more generic companies to penetrate the market. While Cipla will "examine the impact" of its move on doctors and the market , before it slashes prices of more cancer drugs, most players in the Rs 1,500-crore oncology market such as Glenmark, Natco Pharma and Hetero Drugs said that they would take a decision over the next few days. "It may not trigger a price war but definitely there will be some changes. The oncology market in India has had price wars taking place irrespective of official slashing of MRPs, since approximately 70% of business is driven through institutions which have tenders as a pre-requisite ," experts say. Also, companies offer substantial discounts on the marked prices to doctors and institutions, an executive with a leading company said.