BUZZ - Goldman Sachs says the price cap on cancer drugs has limited impact on Indian hospitals

路透社2026/10/09 04:26

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October 9 – Goldman Sachs pointed out that India's implementation of a 30% profit margin cap on non-scheduled anticancer drugs (link) will have limited impact on hospitals. The report states that, based on preliminary discussions with hospital chain groups, such drugs account for less than 5% of hospital revenue and 2% to 2.5% of operating profit. The report adds that hospitals can offset the losses by slightly adjusting service charges, such as administration fees. According to a government notice, an expert committee will finalize the list of drugs to be brought under regulation. Driven by the anticipated price cap, the share prices of Max Healthcare MAXE.NS, Apollo Hospitals APLH.NS, and Fortis Healthcare FOHE.NS rose by 1.6% to 2.5%. Previously, since September 30, these stocks had collectively declined by 11% to 11.5%. Year-to-date, FOHE and MAXE are down 11.7% and 14.8%, respectively, while APLH has risen by 11%. (To assist non-English speakers, Reuters provides automated translations of its reports into several other languages. Due to potential errors or missing context in automated translations, Reuters does not guarantee the accuracy of automatic translation texts and offers them solely for readers’ convenience. Reuters accepts no responsibility for any damage or loss caused by using these automated translation features.)

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October 9 - ** Goldman Sachs points out that India's 30% profit cap on off-schedule anti-cancer drug prices (link) has limited impact on hospitals

** The report states that initial discussions with hospital chain groups indicate such drugs account for less than 5% of hospital revenues and 2% to 2.5% of operating profit

** The report adds that hospitals can offset losses by slightly adjusting service prices, such as administration fees

** The government announcement states that an expert committee will finalize the list of drugs to be regulated

** Affected by the price cap expectation, shares of Max Healthcare MAXE.NS, Apollo Hospitals APLH.NS and Fortis Healthcare FOHE.NS rose by 1.6% to 2.5%. Previously, since September 30, these stocks had seen an accumulated drop of 11% to 11.5%

** Year to date, FOHE and MAXE are down 11.7% and 14.8% respectively, while APLH is up 11%

(To make it easier for non-English speakers, Reuters has automated the translation of its reports into several other languages. Since automated translation may contain errors or lack necessary context, Reuters does not guarantee the accuracy of this automated translation text and provides it solely for reader convenience. Reuters accepts no liability for any harm or loss arising from the use of the automated translation feature.)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Updated to market close Firmus, backed by Nvidia, cancels $5 billion IPO plan; tech stocks see their biggest weekly gain in a week; Benchmark index posts gains for the second consecutive week Jasmeen Ara Islam Shaikh, Reuters, October 9 – Australian stocks rose on Friday as bargain hunters bought shares after a recent benchmark pullback; at the same time, Firmus’s decision to shelve its $5 billion IPO plan triggered an inflow of funds into local software stocks. The benchmark S&P/ASX 200 .AXJO rose 0.6% on Friday to close at 8,716.6 points after two consecutive days of declines. For the week, the index rose 0.4%, posting gains for a second straight week. Globally, comments from US President Trump that the US would pause strikes against Iran ahead of the November midterm elections provided a slight lift to market sentiment. Domestically in Australia, markets are closely watching September quarter inflation data to be released later this month, as well as awaiting the Reserve Bank of Australia’s last two policy meetings of the year in November and December. On the day, tech stocks .AXIJ jumped as much as 3.1% after data center operator Firmus, backed by Nvidia NVDA.O, called off its IPO due to lukewarm market response. Maas Group MGH.AX, a 3.2% shareholder in Firmus, resumed trading after a morning halt and saw its shares plunge as much as 10.7%. David Tuckwell, Chief Investment Officer at ETF Shares, said Firmus’s withdrawal was positive for local tech stocks as it kept fund managers’ money in existing listed shares and avoided forced rebalancing for index funds. He added that after extended selling, valuations in the sector were oversold and now operating on their own momentum. However, weak demand for Firmus indicated that investors preferred enterprises with solid performance, rather than shunning tech stocks entirely. WiseTech Global WTC.AX, Xero XRO.AX, and Life360 360.AX rose 4.2%, 3.5%, and 4.1% respectively. As gold prices edged up, gold miners .AXGD gained 1.9%, the sector's biggest gain in more than two weeks. GOL/ Weighed down by softer iron ore and copper prices, the overall mining index dipped 0.2%. IRONORE/ MET/L Financial stocks .AXFJ rebounded 0.5% after declines over the previous two sessions. Energy stocks .AXEJ edged higher by 0.2%, marking four straight gains despite weaker early oil prices. O/R Across the Tasman Sea, New Zealand’s S&P/NZX 50 index .NZ50 closed up 0.4% at 13,749.35 points. (For the convenience of non-English speakers, Reuters automatically translates its reports into several languages. Due to possible errors or omitted context in automated translations, Reuters does not guarantee the accuracy of such texts and provides them solely for reader convenience. Reuters accepts no liability for any damages or losses resulting from the use of automated translation features.) For more on "Schedules & Data": US earnings calendar RESF/US, Wall Street outlook for the week .N/O, Global economic outlook DATA/ ... See all the latest market headlines and breaking news at NEWS1.

路透社•2026/10/09 05:56