Natco Pharma, Cipla, other pharma shares rise up to 4%

Indian pharmaceutical shares rallied by up to 4% after the US Department of Health and Human Services said it is working to implement an executive order aimed at lowering healthcare costs. The department expects drugmakers to align US prices for brand-name products across markets without generic or biosimilar competition.

The statement comes as a relief for biosimilar and generic drugmakers as it talks about price cuts only for branded drugs, indicating that generics will not be affected, reports indicated. The Nifty Pharma index gained 1.7%, rebounding from a 1.3% drop in the previous session. Eighteen of the 20 constituents advanced.