The National Pharmaceutical Pricing Authority's (NPPA) decision to increase prices of 14 medicine formulation packs in the range of 3.5 per cent to 9.6 per cent and reduction of prices of 26 packs upto 51 per cent triggerd the late rally. The move to increase drug prices augurs well for the bottomlines of a number of pharma companies.

Taking a cue from the upward price revision, multinational pharma stocks like Novartis, Glaxo, Rhone Poulenc, German Remedies, Pfizer, Parke Davis, E Merck and Knoll Pharma shot up to record handsome gains on the Bombay Stock Exchange. The rise came around the closing stages of the trading session.

Among the major gainers on the bourses on the Bombay Stock Exchange, Glaxo shot up by Rs 35 to Rs 772, Novartis was up by Rs 38.85 to Rs978.85, Burroughs Wellcome by Rs 34.85 to Rs 738.35, E Merck by Rs 45.80 to Rs 620.40, German Remedies by Rs 54 to Rs 820, Knoll Pharma (Rs 21.40), pfizer (Rs 29.70), P&G (Rs 31), Rhone Poulenc (Rs 63.25), Smith Pharma (Rs 10.4).

Among the Indian Pharma stocks, Ranbaxy was up Rs 28 to Rs 628, Dr Reddy by Rs 21 to Rs 850, Nicholas by Rs 10.50 to Rs 315.95 and Sun Pharma by Rs 16.60 to Rs 465.15.

The formulations for which prices have been revised consist of a range of deriphyline formulation used for treatment of asthma, levodopa tablets for anti-parkinson disease, rubraplex liquid and lederplex liquid used for vitamin deficiency and ledermycin tablets used as broad spectrum antibiotics. The prices have been fixed in accordance with the provision of the drugs prices control order (DPCO), 1995. The new prices would become effective within 15 days from the date of notification.