PremiumNational Pharmaceutical Pricing Authority (NPPA) has capped margin at distributor on five medical devices - pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer and glucometer - under the Trade Margin Rationalisation.
The medical paraphernalia pricing authority has directed manufacturers to fix new maximum retail prices (MRP) for these five medical devices as per a new formula with price to distributors will not exceed 70 per cent.
The revised prices will come into effect from July 20, NPPA said, by when manufacturers shall submit the details, including price to distributors, retail price, as well as existing and revised MRP, for these five products. For devices launched after March 31 this year, prices will be fixed as per the new formula devised by NPPA.
"No manufacturer, distributer, retailer shall sell these five medical devices, namely, (i) Pulse Oximeter, (ii) Blood Pressure Monitoring Machine, (iii) Nebulizer, (iv) Digital Thermometer, (v) Glucometer to any consumer at a price exceeding the revised price, as submitted in Form-V, or price indicated on the label of the container or pack thereof, whichever is less," NPPA said in its order on Tuesday.
The price so fixed shall remain in force up to January 31, 2022 or until further orders, whichever is earlier, the authority added. Manufacturers will also have to submit details regarding products manufacture, imported, sale and export of these devices every quarter to NPPA.
"State drug controllers shall ensure compliance of this Order. The manufacturers/ dealers/ hospitals/ medical institutions shall assist the state drug controllers in verifying the compliance to this order. Any violation of this order is required to be brought to the notice of NPPA," the authority noted.
Existing margins for the five medical devices brought under trade margin rationalisation currently range from 3 per cent to 709 per cent. Rationalisation of margins will help bring prices down for end customers and bring uniformity in the market.
"The manufacturers of these five medical devices, namely, (i) Pulse Oximeter, (ii) Blood Pressure Monitoring Machine, (iii) Nebulizer, (iv) Digital Thermometer, (v) Glucometer selling at price higher than the Maximum Retail Price so computed as per Table-A, shall revise the prices downward, not exceeding the Maximum Retail Price computed by using above formula," the NPPA said.
Meanwhile, manufacturers selling these devices at prices lower than MRP as per the new formula have been prohibited from increasing prices.
Every retailer, dealer, hospital and institution has been asked to display price list and the supplementary price list, as furnished by the manufacturer, on a conspicuous part of the business premises in a manner so as to be easily accessible to any person wishing to consult the same.
"The manufacturers not complying with the Maximum Retail Price so computed... shall be liable to deposit the overcharged amount along with 15 per cent interest p.a. from the date of increase in price in addition to penalty up to 100 per cent of the overcharged amount under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955," NPPA ordered.
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