Pharma Stocks Slide as Government Mandates Prescription for Cough Syrups

Shares of leading pharmaceutical firms tumbled on Tuesday following the Centre’s decision to tighten regulations on syrup-based medicines, including popular cough syrups.

a, harma, Dr. Reddy’s Laboratories, and ark Pharmaceuticals were among the notable decliners. Cipla fell around 0.65%, Glenmark declined 0.56%, Dr. Reddy’s slipped 0.36%, and Sun Pharma dropped 0.25%. The broader Nifty Pharma index mirrored the sentiment, closing 0.47% lower at 24,220.10. The Union Health Ministry’s amendment to the Drugs Rules, 1945, removes the over-the-counter (OTC) status of all syrup formulations. Effective immediately, patients must now obtain a doctor’s prescription for purchase. The move aims to curb self-medication, reduce misuse of ingredients like codeine and dextromethorphan, and address concerns over antibiotic resistance and adverse effects. Major brands such as Cofsils, Ascoril, Zedex, and Tusq will now be prescription-only, impacting sales and distribution strategies for these companies. Analysts expect short-term revenue pressure on cough and cold portfolios, though long-term benefits may emerge from improved regulatory compliance and patient safety.