The drug is now tentatively climbing up to the price levels of April 1996 - April 1997 period. Price in the domestic market has gone up from Rs 410/kg to Rs 446/kg between April and June 1998. Export prices to non-US countries have risen from $8 per kg to $9.5 per kg for the same period and to the US, it stands at round $13 per kg.

The global demand for Ibuprofen is estimated to be 8000 tpa while domestic demand is around 1500 tpa. The present price recommendation for Ibuprofen by National Pharmaceutical Pricing Authority (NPPA) is Rs 442/kg.

The drug price in the domestic market is generally volatile showing wide variations. Any increase in prices beyond Rs 400 per kg attracts a host of manufacturers from Hyderabad leading to excess supply and lowering of prices. This price sensitivity acts as a deterrent for new players to set up a greenfieldproject for Ibuprofen. An average 2500 tpa project would cost Rs 75 crore.

One of the largest players of Ibuprofen in the country is Shasun Chemicals and Drugs Ltd. An increase in the export commitments of Shasun leads to depletion of supplies to the domestic market resulting in corresponding price increases. Shasun exports to USA, Middle East and the Asian countries.

It supplies Ibuprofen to leading multinationals around the world including Boots Pharmaceuticals, the original patent holder. Currently it has a capacity to manufacture 2500 tonnes per annum (started with 60 tpa in 1986), making it one of the largest producers in the world. The company first got FDA approval for exports from its Pondicherry plant in 1991 which was extended in 1996.

Despite the availability of Naproxen as an alternative to Ibuprofen, the latter still enjoys a considerable popularity the world over on account of its price advantage. Manufacturers of Ibuprofen have as a result objected to sodium metal, a critical raw materialfor Ibuprofen manufacture being placed in the restricted category of imports from April 1997. A specific import license has to be obtained from the Director General of foreign Trade, ministry of commerce, New Delhi for import of the material.

Being in the restricted category creates difficulties in the opening of an import letter of credit without the licence. As there is only one manufacturer of sodium metal here who does not have the capacity to service the requirements of the Ibuprofen industry, the input should be reverted to the OGL category with actual user condition.