Violation of price capping of Coronary stent to attract NPPA action; Minister

New Delhi: The Minister in the Ministry of Chemical and Fertilizers recently informed the Parliament that if any violation of price capping regarding Coronary Stents is noticed by the National Pharmaceutical Pricing Authority (NPPA), then overcharging proceedings is initiated against such hospital/manufacturer concerned for recovery of the overcharged amount.

This came while responding to a query raised by Dr Banda Prakash during a recent Rajya Sabha session. He asked whether the margin of profit has been added on MRP fixed for different types of coronary stents by NPPA and its details. He further questioned about the action that could be taken against hospitals in case they demand a higher price than MRP for stents.

Responding to the query, the Minister stated that NPPA in February 2017 fixed ceiling prices for Coronary Stents namely (i) Bare Metal Stents (BMS) and (ii) Drug-Eluting Stents (DES) including metallic DES and Bioresorbable Vascular Scaffold (BVS)/ Biodegradable Stents considering methodology of Price to Distributors (PTD) plus 8% Margin for arriving at ceiling prices for the same. The ceiling prices for Coronary Stents were revisited and revised vide Order dated 12th February 2018 after considering the methodology of Landed Cost plus 50% margin for BMS and Landed Cost plus 35% margin for DES. The ceiling prices so fixed vide the aforesaid Orders is inclusive of Trade Margin of 8%.

Also Read: NPPA Revises Price Of Coronary Stents; Check Out Details

The ceiling prices fixed vide aforesaid order has been revised several times considering the increase in Wholesale Price Indexes. He further mentioned a table indicating the price revision of Coronary Stents as;

Particulars Drug-Eluting Stents (Rs.) Bare Metal Stents (Rs.) Remarks

Ceiling prices fixed on 13-02-2017 under Para 19 of the Drugs (Prices Control) Order, 2013 (DPCO, 2013) 29,600 7,260 Initial fixations of ceiling prices with 8% Margin

Ceiling prices w.e.f. 01-4-2017 30,180 7,400 WPI increase @ 1.97186%

Ceiling prices re-fixed on 12-02-2018 under Para 19 of the DPCO, 2013 27,890 7,660 Ceiling prices revisited based on Landed Cost

Ceiling prices w.e.f. 01-4-2018 28,849 7,923 WPI increase @ 3.43812%

Ceiling prices w.e.f. 01-4-2019 30,080 8,261 WPI increase @ 4.2662%.

Clarifying about the regulatory actions in case of violation of the ceiling price of the Coronary Stents fixed by NPPA, the minister said;

"Institutions such as hospitals/nursing homes/clinics utilizing Coronary Stents for Angioplasty are bound to abide by the ceiling prices fixed by the Government for Coronary Stents. If any violation of price capping regarding Coronary Stents is noticed by NPPA, then overcharging proceedings is initiated against such hospital/manufacturer concerned for recovery of the overcharged amount."

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