Sanofi India Limited on Tuesday will reduce the cost of its insulin glargine brand Lantus by approximately 21 per cent, the company announced through an exchange filing. The cost cut comes as the said medicine is under the list of National Pharmaceutical Pricing Authority's list to fix the ceiling price to make medicines more affordable to patients.
The NPPA in December last year set a price cap on 127 medicines in order to make medicines more affordable.
The reduction of 21 per cent would be on a weighted average basis and will consider the different SKU's being marketed by the company. The drop in cost will likely result in volume traction in Lantus specifically during the second half of the year.
The company said, "While there will be an impact on sales, the Company does not expect a material impact on the profitability considering the arms-length operating model principle being followed with regard to sourcing of this product from Sanofi Group."
Sanofi shares
The shares of Sanofi India Limited on Wednesday at 10:06 were at 5,957.10, down by 0.58 per cent.
