Jul. 7, 2009 (The Hindu Business Line) --

P.T. Jyothi Datta

And benefits of halving Customs duty on these medicines to five per cent will be passed on to the consumer, multinational companies making these products told Business Line.

All drugs getting the benefit will fully pass it on to customers, said GlaxoSmithKline (NYSE:GSK) (GSK) Pharmaceutical’s head in India, Dr Hasit Joshipura.

GSK’s breast cancer drug Lapatinib will see an estimated four cent cut in retail price, he indicated. Lapatanib or Tykerb was locally launched in 2008. GSK’s Fondaparinux Sodium, or anti-blood-clot product Arixtra will also benefit from the customs duty cut. It was launched in 2007.

Pfizer’s Suntinib Malate used in advanced kidney cancer will see consumers benefit from the customs duty cut, indicated Pfizer (NYSE:PFE) ’s India chief, Mr Kewal Handa. These are new generation oncology drugs and are expensive, said cancer expert Dr Purvish Parikh. And since they are patent-protected, there are no less-expensive generic versions, he added.

A vaccine industry veteran said that the Budget possibly refers to the seasonal influenza vaccine registered recently by Sanofi Aventis. (NYSE:SNY)

There are no seasonal flu vaccines in the country, he added, besides other vaccines already enjoy reduced or nil duties.

But other vaccine makers say, it is not clear if the Centre was pre-empting the swine flu vaccine, given the pandemic levels of swine flu.



Other drugs getting the reduced customs duty benefit include: Novartis (NYSE:NVS) ’ Daptomycin, a novel lipopeptide antibiotic; Entacevir, an antiviral for hepatitis B; chemotherapy drug Ixabepilone from Bristol Myers Squibb (NYSE:BMY PR) (NYSE:BMY) ; Tocilizumab, a monoclonal antibody used in rheumatology; Pegaptanib Sodium injection, used in age-related eye problems and Abatacept, a fusion protein.