Ranitidine Bulk Prices Cut 30% By Indian Govt

India's government has slashed the bulk prices for the antiulcerantranitidine by 30% from 1,714 rupees per kg to 1,203 rupees ($33.68). The move is expected to have a considerable impact on major formulators of the drug including Glaxo India (Glaxo Wellcome group), Ranbaxy, JB Chemicals and Cadila, as a corresponding reduction in finished formulation prices is expected shortly.

Glaxo India managing director Homi Khusrokhan says the government move is "a major disappointment" and the company has decided to appeal against the decision. Glaxo may be the worst affected as its formulation, Zantac, accounted for Indian sales of $11.2 million last year.

Cadila's Aciloc had audited sales of $5 million but actual turnover is reportedly higher. JB Chemical's Rantac posted sales of around $2.5 million. Ranbaxy, which is caught up in a legal action over the pricing of bulk ciprofloxacin, also markets ranitidine, as Histac, with audited sales of $3.3 million. Mr Khusrokhan says bulk drug prices have been cut continuously over the past few years but volume partly compensated. Glaxo feels it is ironic, he adds, that the price of Zantac, already at one-thirtieth of the world price, is now down to that of an ordinary antacid.