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Pfizer shares down over 6% on ban of fixed-dose drugs by Health Ministry

The order resulted in a ban on the fixed dose combination of Chlopheniramine Maleate plus Codeine syrup leading the company to suspend manufacture and sale of Corex cough syrup.

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The shares of pharmaceutical major, Pfizer, fell down over 6% on Monday after a ban from the Health Ministry on 329 drugs marketed as fixed-dose lead to the company discontinuing the manufacture and sale of the popular cough syrup Corex with immediate effect. 

In an order, the Health Ministry ordered to ban 329 drugs marketed as fixed-dose combinations last week. The order resulted in a ban on the fixed dose combination of Chlopheniramine Maleate plus Codeine syrup.

At 1242 hours, the shares of Pfizer were trading down 6.54% or Rs 126.15 at Rs 1,801.70 per scrip on the BSE. 

According to media reports, pharma companies are planning to push hard for the withdrawal of the order, with some even looking at legal options. Fixed-dose combinations are two separate drugs combined into a single dose.

"This is to inform you that the Government of India vide notification... dated March 10, 2016... has prohibited the manufacture for sale, sale and distribution of fixed dose combination of Chlopheniramine Maleate + Codeine Syrup with immediate effect," Pfizer said in a BSE filing on Monday.

It further said, "In view of this, the company has discontinued the manufacture and sale of its drug Corex with immediate effect."

Pfizer said Corex maintains a "well-established efficacy and safety profile in India" and the "company is exploring all available options at its disposal."

Elaborating on the impact, the company said, "The above prohibition is likely to have an adverse impact on the revenue and profitability of the company... Corex recorded sale of Rs 176 crore for the nine month period ended December 31, 2015."

(With PTI Inputs) 

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