Cost of orthopaedic knee implants will not be allowed to rise beyond 10 percent: NPPA

NEW DELHI: Through a recent notification, the country's apex drug price regulator, the National Pharmaceutical Pricing Authority (NPPA) has apprised that the maximum retail price (MRP) of orthopaedic knee implants will be monitored to make sure that the cost does not increase beyond 10 per cent in a given year.

NPPA first slashed MRPs of knee implants by up to 69 per cent, using extraordinary powers granted under the country’s drug pricing regulations. Accordingly, the cost of knee implants was reduced significantly, up to 69%.

Medical Dialogues had earlier reported that the government had capped prices of knee implants at a significantly lower rate than current market rates, a move that could result in savings of Rs 1,500 crore annually to patients requiring surgery.

Also Read: Knee Surgery Implants now under Price Ceiling, Effective Immediately

The NPPA, in its meeting held on 8 Aug 2019, reviewed the matter. It was noted that there has been increased access due to knee implants becoming affordable.

"Though the industry has requested for a 20% (10% for the year 2018 and 10% for the year 2019) increase in the price of knee implants, it was decided to further monitor the price increase of knee implants as per para 20 of the DPCO, 2013 that restricts price increase beyond 10% in a given year. This shall be subject to a review after one year," an official statement said.

The NPPA notified the ceiling price of orthopaedic knee implants on 16th August 2017 by invoking extraordinary powers, in public interest, under Para 19 of Drugs Prices Control Order (DPCO) 2013, for a period of one year.

Subsequently, the applicability of ceiling prices fixed for orthopaedic knee implants was extended for another one year, up to August 15, 2019.

Also Read: Government extends caps price of knee implants for one more year

As per the data submitted by manufacturers and importers, an increase of 30% in the sales of knee implants has been reported during the period of July 2018 to June 2019. The knee implant is a non-scheduled medical device/drug for which DPCO, 2013 allows an annual increase up to 10% of MRP. However, this was not permitted in 2018, reports PTI.

Talking to Medical Dialogues about the same, MTaI Chairman, Mr Pavan Choudary said in a statement, “We were seeking a 20% increase in selling price of knee implants to make up for two years of price control combined with continuing pressures of rupee devaluation and inflation. Having said that, it is reassuring that the government has begun to acknowledge the financial pressures on medical device companies and has decided to give a partial relief by letting companies increase the price by 10% in next one year, as per Para 20 of DPCO, 2013. As we move ahead, we will continue to engage with the government for a long-term solution.”