Cannot exceed 8 percent trade margin on Stents: NPPA

New Delhi: NPPA has taken a step ahead to prevent distributors from grabbing higher profits and manipulating trade margins on coronary stents than the allowed margins by the government.

Through a recent notification, Government of India, Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals and National Pharmaceutical pricing Authority (NPPA) has clarified that any person who imports stents directly without having registration certificate from the central drug regulator with an undertaking from companies that have a registration certificate will also be considered as a 'distributor'.

In the notification, NPPA has further stressed that only 8% of trade margin can be added in excess on the cost of the stent.

Taking this step, NPPA has tried to stop distributors from importing stents on behalf of foreign companies and adding high margins while selling the devices across the value chain. It has also initiated an attack against hospitals which are overcharging on stents . For the same, NPPA through a demand notice has fined Rs. 1.26 lakh to Metro Heart Institute, Faridabad asking them to pay fine to the department of pharmaceuticals for allegedly overcharging patients for stents.

Find the attachment for the same

http://www.nppaindia.nic.in/order/addendum08030217.pdf