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NPPA extends trade margin capping on 5 Medical Devices

The TMR was imposed in the wake of increased usage of these devices owing to the C-19 pandemic.

July 5, 2022

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NPPA National Pharmaceutical Pricing Authority — Picture: Pixabay

Last Updated on January 4, 2024 by The Health Master

The National Pharmaceutical Pricing Authority (NPPA) has extended the timeline for the trade margin capping of the following five medical devices, which are essential during the C-19 pandemic period, till December 31, 2022.

Pulse oximeter,
Blood pressure monitoring machine,
Nebuliser,
Digital thermometer and
Glucometer

This is the second time the drug price regulator has extended the trade margin rationalization (TMR) of the five devices: pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer, and glucometer at 70 percent at the first point of sale, following the initial notification on July 13, 2021.

The TMR was imposed in the wake of increased usage of these devices owing to the C-19 pandemic.

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At a meeting on June 28, the Authority deliberated upon the matter in detail and opined that as the C-19 pandemic is still a risk to public health, the availability of these medical devices at affordable prices must be ensured.

“Hence, it was decided that the notification SO 2808(E) dated July 13, 2021, be further extended up to December 31, 2022, or until further orders, whichever is earlier,” said NPPA.

The Authority also decided that the five medical devices as mentioned in the said notification be monitored as per the provisions of the Drugs Prices (Control) Order, 2013 subject to maintenance of trade margin.

The TMR, initially applicable up to January 31, 2022, was extended to July 31, in a notification at the end of January, this year.

The notification mandated to fix the Maximum Retail Price (MRP) as per the specified formula: “Maximum Retail Price = Price to Distributor (PTD) + (PTD x TM) + Applicable GST, Where TM = Trade Margin not exceeding 70%.”

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In pursuance of the price cap, the NPPA, through an office memorandum on July 14, also directed manufacturers and importers of these medical devices to submit revised MRPs of their products. Based on the data provided, the downward revision of MRP was reported by imported and domestic brands across all the categories.

Following this, a total of 1,132 products, including 277 pulse oximeters, 329 blood pressure monitoring machines, 105 glucometers, 164 digital thermometers, and 257 nebulizers, have reported prices, of which 1,033 (91%) reported downward revision of MRP.

According to an earlier document with NPPA, the decrease in MRP was between:

Rs.12 to Rs. 2,95,375 (1%-89%) for pulse oximeters,
Rs. 20 to Rs. 38,776 (1%-83%) for blood pressure monitoring machines;
Rs. 30 to Rs. 2,250 (1%-98%) for glucometer,
Rs. 8 to Rs. 44,775 (1%-89%) for digital thermometers; and
Rs. 56 to Rs. 6,165 (1%-83%) for nebulisers.

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The price regulator, through a notification on March 31, 2020, has brought all medical devices, including a pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer, and glucometer, to be governed under the provisions of DPCO, 2013 with effect from April 1, 2020.

The Authority in the meeting in June 2022, also extended the capping of the trade margin of oxygen concentrators at the first point of sale for fixation of the maximum retail price, along with the decision to control the prices of liquid medical oxygen and medical gas in cylinders.

The move to control the prices of oxygen concentrators resulted in a price reduction of 70 out of 252 products, and the MRP was reduced by up to 54% (up to Rs. 54,337).

The pricing of oxygen concentrators did not adversely impact domestic production and no disruption in supplies was observed, said NPPA officials earlier.

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