Drug firm Sanofi India on Tuesday said the company's insulin glargine brand Lantus will be subject to a price reduction of approximately 21 percent on a weighted average basis.

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This comes after the National Pharmaceutical Pricing Authority (NPPA) issued the list to fix the ceiling price for the cost to patients of Sanofi India's insulin glargine brand Lantus.

"...wherein we had informed that the Ministry of Health and Family Welfare, Government of India, had released the revised National List of Essential Medicines (NLEM), 2022 which include the company’s product insulin glargine (100 IU/ ml) as part of the said list and subsequently the National Pharmaceutical Pricing Authority (NPPA) will fix the ceiling price for the cost to patients of the products included in the list," it said in an exchange filing.

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While there will be an impact on sales, the company does not expect a material impact on profitability considering the arms-length operating model principle being followed with regard to sourcing this product from Sanofi Group.

The drop in price is also likely to result in some volume traction in Lantus especially in the second half of the year, the company said.