PremiumNEW DELHI: At least 91% of brands of five medical devices have reported downward revision of prices up to 88%, after the Union government capped trade margins, at least 70% of them effective 20 July, the ministry of chemicals and fertilisers said on Saturday.
Highest reduction in prices for pulse oximeters, blood pressure monitoring machine and nebulizer has been reported by importers, the government said. On 13 July, the National Pharmaceuticals Pricing Authority (NPPA) had invoked extraordinary powers under the Paragraph 19 of Drug Price Control Orders, 2013, to cap the trade margin of five medical devices—oximeter, glucometer, BP monitor, nebuliser, and digital thermometer. The margin was capped up to 70% on price to distributor (PTD) level.
"Pursuant there to, a total of 684 products/brands of these medical devices have been reported as on 23 July 2021 and 620 products/brands (91%) have reported downward revision of MRP (maximum retail price)," ministry of chemicals and fertilisers said in a statement. The maximum downward revision has been reported by an imported brand of pulse oximeter, showing reduction of ₹2,95,375 per unit, it added.
The downward revision of MRP has been reported by imported and domestic brands across all the categories, the ministry said adding that the highest reduction in prices by importers has been on pulse oximeters, blood pressure monitoring machines and nebulisers.
The revised MRP effective from 20 July 2021 on all the brands and specifications has been shared with the state drug controllers for strict monitoring and enforcement, the ministry said.
"In larger public interest, government caps trade margin for five medical devices, effective from 20 July 21. It will hugely reduce prices of medical devices," chemicals and fertilizers minister Mansukh L Mandaviya tweeted.
With the purpose of making the medical devices affordable during the evolving situation of covid pandemic, it is felt necessary to regulate the trade margin on these medical devices, NPPA had said in its order.
It had said that the data collected from the manufacturers /marketers/importers pointed out that existing trade margins on the five medical devices ranged up to 709% from price to distributor to MRP level.
Paragraph 19 of DPCO, 2013, authorises the NPPA to control drug prices that are not under the National List of Essential Medicines (NLEM) under extraordinary circumstances in public interest. In June, the government capped the trade margin on oxygen concentrators at 70% by invoking extraordinary powers under Para 19 of the DPCO, 2013.
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