BackNPPA caps trade margins of pulse oximeter, digital thermometer & 3 other medical devices at 70%
The trade margin cap is imposed immediately in order to increase access to these devices during the covid-19 pandemic, the drug pricing regulator said
PremiumThe National Pharmaceutical Pricing Authority (NPPA) has capped the trade margins of five medical devices, including pulse oximeter and digital thermometer, at 70% of the price at which manufacturers sell it to the distributor. The trade margin cap is imposed immediately in order to increase access to these devices during the covid-19 pandemic, the drug pricing regulator said.
“NPPA is entrusted with the mandate to ensure the availability of essential drugs at affordable prices, and keeping in view the evolving Covid 2.0 pandemic, it is necessary to regulate the prices of these medical devices," NPPA said in its order, issued on Tuesday.
The need for the order was felt after monitoring of data on these products showed that margins charged by distributors ranged as high as 709% of the price at which it was sold to them by manufacturers.
As per the order, the NPPA has used its emergency powers under paragraph 19 of the Drug Price Control Order to cap the margins paid to distributors in a bid to lower the prices of pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer and glucometer.
Under the new order, the maximum retail price of the device would include the price at which it is sold to the distributor plus 70% of that price which would be the distributors’ margin and the applicable GST rate.
The margin cap on the medical device is temporary and only in effect until 31 January 2022, unless there is another order before that.
Manufacturers of these five devices have been asked by the NPPA to submit quarterly details of products they sell to monitor compliance with the order.
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