Friday 26 July 2013

Drug pricing policy issue hurting sector's growth: Biocon

Biotechnology major Biocon which today posted a strong first quarter earnings raised concerns about confusion in India's drug pricing policy, which has impacted the growth of pharma-biotech sector.

“We are still seeing very challenging environmental condition in India especially around regulatory aspects of the pharma-biotech sector. We hope that the government will really address this with the sense of urgency,” Kiran Mazumdar Shaw, CMD, Biocon said in a earnings press conference.

She alleged that due to confusion in pricing policies stockists have been reluctant to take stock on hand until the pricing issues are resolved. She added that although clinical trials are resuming now, India needed a regulatory robustness. “We don’t want more layers being put in to approvals but have expertise and the knowledge with which to approve clinical trials expeditiously,” she stressed.

The company reported 18.65 percent rise in consolidated net profit at Rs 93.50 for the first quarter on account of strong performance in the biopharma segment. Consolidated revenue rose to Rs 723 crore from Rs 594 crore in a year ago quarter.

Mazumdar said that Q1 result reflect the company’s inherent strength in product portfolio. She expects insulin to be the strong growth driver in current fiscal. The company will launch its second novel biologic drug Alzumab used in psoriasis treatment in August. “We are now of course looking at taking this molecule global and we are in discussion with several companies that are very keen to partner this program in our global development plan,” she said.

No comments:

Post a Comment