The Hindu Business Line : Human insulin prices seen bottoming out

In January, Eli Lilly brought down the prices by 33 per cent to Rs 145 for a 10-ml vial. Another manufacturer, Novo Nordisk, too brought down the prices, thereby, significantly reducing the treatment cost for diabetics.

Wockhardt, which became the first Indian manufacturer of genetically engineered human insulin last month, has set a new benchmark price by bringing down the cost of 10-ml vial by 11 per cent to Rs 129. With that human insulin price is around the same level as the less effective porcine insulin (derived from pigs).

More competition is expected in the human insulin market soon, but industry hands do not seem to be confident of a significant drop in prices from the current level.

Biocon India is likely to be the next entrant with a launch planned in the first quarter of 2004, but the Chairman & Managing Director, Ms Kiran Mazumdar Shaw, declined to comment on the pricing, and the likelihood of a further drop.

Wockhardt's spokesperson said, "Our price is competitive," in the context of increasing competition.

"Not at the moment," said Lilly's spokesperson on the possibility of reducing the price.

Domestic manufacture of human insulin is new, a factor that may account for the reluctance of industry observers to make a forecast.

But insights provided by the companies during the last few months suggest that diabetics may have a positive trend to look forward to.

When human insulin price was cut early this year, Lilly officials traced the cause to cost advantages derived by transferring part of the manufacturing process to India.

A few industry observers, however, pointed to the threat of looming domestic competition as the primary reason.

Overseas companies may not have the means any longer to trigger a price war. For instance, Eli Lilly's Chairman & Managing Director, Mr Rajiv Gulati, told Business Line in January that the company had limited room to reduce price because related items such as glass vial and rubber stopper were imported to meet the parent company's standards.

Indian companies appear to be the best placed to spark more price-cuts.

Wockhardt said that its price captured the cost of ingredients as well as the cost of its insulin project — it costs over Rs 150 crore.

Biocon, the next entrant, seems to have incurred a lower cost. Ms Shaw said that the entire insulin project would cost the company Rs 55 crore.

"We will try and get the best market value for out product," she added.

Increased competition may be the best hope that patients have in the long-term.

Article E-Mail :: Comment :: Syndication

Stories in this Section
`Chemical process better bet to treat sewage'

Bengal, Singapore chambers ink pact to boost trade ties

Turnkey telemedicine solutions from Apollo

Fair to showcase Bengal healthcare facilities

Chennai five-star hotels hike room tariff 8-10 pc

Human insulin prices seen bottoming out