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Cannot exceed 8 percent trade margin on Stents: NPPA

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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.

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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.

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Read also: New Delhi: Metro Hospital fined Rs 1.26 Lakh for stent overcharging

Find the attachment for the same

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

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Author Details

Ruby Khatun

Ruby Khatun joined Medical Dialogue as Reporter in 2016. She covers all the business news in different categories. She also covers all the updates in Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She is a post graduate from Jamia Hamdard. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751

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