Pharmabiz
 

Medical devices to come under price control, NPPA to place them under new schedule

Joseph Alexander, New DelhiMonday, December 13, 2010, 08:00 Hrs  [IST]

The National Pharmaceutical Pricing Authority (NPPA) is looking at the ways to keep a tab on the prices of medical devices already included in the category of drugs, after its study found that the prices of these products varied wildly in the domestic market.

The agency is looking at the different options including monitoring the prices that go beyond the stipulated 10 per cent annual increase for the medical devices as many of them have already been included in the list of drugs, sources said. The NPPA is already taking action against pharma companies if the prices of non-scheduled formulations go beyond the stipulated 10 per cent increase in an year. However, since the move is still on to bring in new regulations for the devices sector and possibility of including all devices under a new Schedule, the agency is still in discussion with other agencies concerned, it is learnt.

The government had asked the NPPA to collect data on prices, supply and availability of medical devices in the country. It was also asked to study the pricing patterns existing in other countries especially those with the same kind of purchasing power.

As per the data collected by the agency, it was found that prices of devices like stents, catheters, orthopaedic implants and heart valves varied wildly. Lowest price of catheters available in the market is Rs.11,000 whereas the high-end models are as costly as Rs.78,000, making a huge difference, sources said citing a case. Likewise, prices of some other devices of the same category varied from Rs.3800 to Rs.8000. The pattern was noticed almost across the board, sources added.

The huge margins, annual rise in the prices, unethical practices in the sector, apart from the variation in prices have come to the notice of the NPPA, prompting it to look at the options to bring some control. The government has notified some devices in the category of drugs from time to time, starting from 10 in 2005. The price regulator is learnt to be looking at the ways to target these devices first.

As there is a long-pending process to negotiate prices of patented drugs and medical devices before giving marketing approval in the country, the data on prices and models of other countries are also reportedly under the consideration of the panel set up to suggest a framework for price negotiations.

 
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