BUZZ - Goldman Sachs says the price cap on cancer drugs has limited impact on Indian hospitals
路透社2026/10/09 04:26October 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.)
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.
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On October 9, shares of Australian QBE Insurance Group (QBE.AX) continued their upward trend, rising 1.8% to AUD 24.805, reaching the highest level since August 5. The stock has gained approximately 4.2% this week and is on track for its best weekly performance since early June. Earlier this week, Citi noted in a report that the insurer stands out from its domestic peers due to its ability to achieve at least mid-single-digit, volume-driven gross written premium (GWP) growth while maintaining underwriting margins. The broker upgraded the stock's rating to "Buy" and raised its target price by 10.3% to AUD 26.70. The report also stated that QBE has currently reached a total premium income of USD 1.5 billions and is expected to increase to USD 2.5 billions in the medium term. Citi added that it remains optimistic about the stock thanks to enhanced earnings stability brought by prudent reserving. So far this year, QBE shares have risen about 25%.
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