Govt Revision of Stent prices: Industry woes but Consumers Rejoice
New Delhi: Almost a year after it slashed rates of coronary stents by up to 85 percent, the NPPA on Monday revised the ceiling prices of bare metal stents and drug-eluting ones.
In the case of bare metal stents (BMS), the government has increased the prices from current Rs 7,400 to Rs 7,660. On the other hand price of drug-eluting stents (DES) has come down to Rs 27,890 from Rs 30,180.
New stent prices hihghlights;
1-DES: 27890 ex GST
BMS: 7660 ex GST
2- No sub categories in DES
3- Trade margin capped at 8%
4-Prices of catheters etc to be mentioned in billing separately
5- order Valid till 31/3/2019
*Present price DES: 30180
— NPPA~India?? (@nppa_india) February 12, 2018
The regulator also directed all the manufacturers to continue to ensure the availability of all the brands of coronary stents and ensure that no disruption is caused in the supply chain because of printing new MRPs.
The ceiling prices as specified the order are inclusive of 8 percent maximum permissible trade margin which is sacrosanct and no additional charge shall be charged from the consumer/patient except applicable goods and services tax, if any, paid or payable, it added.
The ceiling price fixed shall be applicable till March 31, 2019, unless revised by another notification, the notification said.
Moving away from cardiac stents, NPPA also said that based on available data from the official sources and manufacturer/importer, the trade margins for the supply of cardiac balloon catheter is as high as 405 percent over the import cost.
It was 292 percent for a cardiac drug-eluting balloon or cutting balloon, it added.
|Sl No||Particulars||Average Margin %|
|Average Margin % (MRP - PTD)|
|1||Cardiac Balloon Catheter||405%||234%|
|3||Cardiac Guiding Catheter||295%||93%|
|4||Cardiac Drug Eluting Balloon or Cutting Balloon||292%||140%|
|5||Cardiac Guiding Catheter – Special feature||172%||62%|
Mixed reactions were visible over the Monday's price cap by the government.
Welcoming the decision, The All India Drug Action Network (AIDAN) stated, "We are glad that the government did not cave to a massive pressure that was being exerted by the industry for differential pricing without any scientific basis. We are further encouraged that the NPPA has shared data on the huge trade margins involved in catheters, balloons, and guidewires, expansion of price control to these devices is a necessary step to making procedures like angioplasty/angiogram more affordable and accessible to patients."
AIDAN has also demanded that the NPPA should write to the CCI to conduct an investigation on the large hospital chains for abusing their dominant position and overcharging for angioplasties post the price cap.
Welcoming the decision, Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AiMeD) tweeted
V R happy with NPPA’s new decision to continue with their directive on price cap by not getting swayed by the lobby of overseas multi-national manufacturers.Single category DES is scientific,continuation of the above stand gives confidence to Indian mfrs, v assure cooperation
— AiMeD (@MiIAiMeD) February 12, 2018
While the move was in general welcomed by the healthcare professionals and the consumers, the move was slammed by the stent manufactures, who said that such limit is going to hinder innovation in the market and prevent manufacturers from introducing new and advances stents for the Indian patients. Stent Manufacturers had demanded a differential pricing for different class of stents and were disappointed when the government ignored their demands
Read Also: Differential Pricing for Different classes of Stents: Manufactures tell NPPA
The decision is disappointing. Will limit patient choice and the availability of innovative technologies in the market. The only saving grace in the order is NPPAs' expression that it is open to receiving stakeholder views. Taking this expression as earnest, we will stay engaged. pic.twitter.com/zbw63ma7if Medical Technology Association of India (MTaI) has shown their disappointment over the new decision of the government. Mr. Pavan Choudary, director general of MTaI has tweeted
— MTaI (@mtaiorg) February 12, 2018