Finance
By: Shree1news, 24 JUL 2021
Around 620 brands have witnessed reduction in prices so far with the government capping trade margins on 5 essential medical devices such as pulse oximeter and digital thermometer, used extensively in the treatment and prevention of Covid-19, at 70 per cent with effect from July 20, Chemicals and Fertilisers ministry mentioned on Saturday.
On July 13, the National Pharmaceuticals Pricing Authority (NPPA) had invoked extraordinary powers under the Paragraph 19 of DPCO, 2013, to put a cap on trade margin of 5 medical devices — oximeter, glucometer, BP monitor, nebuliser and digital thermometer.
The margin was capped up to 70 per cent on Price to Distributor (PTD) level. “Pursuant there to, a total of 684 products/brands of these medical devices have been reported as on July 23, 2021 and 620 products/brands (91 per cent) have reported downward revision of MRP,” Chemicals and Fertilisers ministry mentioned in a statement.
The maximum downward revision has been reported by an imported brand of pulse oximeter, showing discount of Rs 2,95,375 per unit, it added. The downward revision of MRP has been reported by imported and domestic brands throughout all the categories, the ministry said.
The highest reduction in prices by importers has been on pulse oximeters, blood pressure monitoring machines and nebulisers, it noted. The revised MRP effective from July 20, 2021 on all the manufacturers and specifications has been shared with the state drug controllers for strict monitoring and enforcement, the ministry mentioned.
“In larger public interest, Government caps Trade Margin for 5 Medical Devices, effective from July 20..It will hugely reduce prices of Medical devices,” Chemicals and Fertilizers minister Mansukh L Mandaviya tweeted. With an aim of making the medical devices affordable during the evolving situation of COVID pandemic, it’s felt necessary to regulate the trade margin on these medical devices, NPPA had mentioned in its order.
It had noted that the information collected from the manufacturers /marketers/importers identified that present commerce margins on the 5 medical units ranged as much as 709 per cent from value to distributor to MRP level. The Paragraph 19 of DPCO, 2013, authorises the NPPA to control the prices of drugs that aren’t under the NLEM (National Checklist of Essential Medicines) under extraordinary circumstances in public interest. Last month, the government capped the trade margin on oxygen concentrators at 70 per cent by invoking extraordinary powers under Para 19 of the DPCO, 2013.
Source:A-N
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