Price cap of Orthopaedic Knee Implants led to boosted sales, says NPPA
New Delhi: The apex drug price regulator, the National Pharmaceutical Pricing Authority (NPPA) has apprised about the positive impact of capping ceiling prices of Orthopaedic Knee Implants, as the sale of the product has increased by 30% over the past one year between July 2018 and July 2019.
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%.
In 2018, the Government had extended the cap on prices for knee implants, ranging from Rs 54,000 to Rs 1.14 lakh for a year. Providing relief to patients going for knee implants, NPPA had extended the ceiling prices till 15th August 2019.
Apart from the extension, NPPA via a notification had 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.
In August, NPPA held a meeting, under the Chairmanship of Shubhra Singh and deliberated upon the matter in detail. The Committed observed;
"There is more than 30% increase in the sale of knee implants during the period of July 18 to June 19 in comparison to that of the previous year. It may be inferred that fixation of ceiling prices of orthopaedic knee implants under Para 19 of the DPCO, 2013 has contributed to increased access to affordable healthcare to the general public."
Though the price cap has come as a relief to patients, the industry association has been facing a negative impact of the initiative to price cap knee implants. The association has proposed to the Government to consider 20% increase in the ceiling price of orthopaedic knee implants for all categories due to currency depreciation, they also mentioned that no price increase (even WPI adjustment) was given in the year 2018. Apart from this, the stakeholders also demanded a separate ceiling price for knee implants components like Bone cement and components required for revision surgery.
However, NPPA has decided to continue the prices mechanism as pegged and added that the ceiling price of orthopaedics knee implants will be reviewed after a period of one year.
Farhat Nasim joined Medical Dialogue an Editor for the Business Section in 2017. She Covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She is a graduate of St.Xavier’s College Ranchi. She can be contacted at email@example.com Contact no. 011-43720751 To know about our editorial team click here