More cos move court against govt's drug ban

Even as more drug makers moved court against the government's move on irrational medicines, the ban could translate into an immediate loss of Rs 800-1,000 crore in the pharmaceutical market, impacting nearly 2,500 brands on retail shelves as well as those in transit over the next few weeks.

Stocks of impacted brands will need to be recalled and destroyed, and companies like Cipla, Emcure, Mankind and Zuventus on Tuesday started informing stockists and retailers about the banned drugs, asking them to stop selling them with immediate effect.

The sudden move has created confusion among stockists, retailers and patients, forcing certain companies like Abbott, Glenmark and Macleods to join Pfizer in challenging the ban in courts, even as the drug industry body, IDMA, said that it is weighing all options.They have been granted interim injunction suspending the implementation of the notification till the next date of hearing on March 21.

Taking the drug industry by surprise, health ministry, in a notification issued on March 12, prohibited the manufacture, sale and distribution of 344 fixed-dose combinations with immediate effect.

Stock prices of leading drug companies were down on the BSE, with Pfizer falling over 3% at Rs 1,705, Cipla down nearly 3% at Rs 525, and Glenmark off 2% (Rs 814), while P&G India slumped by nearly 1% to Rs 6,068.