The National Pharmaceutical Pricing Authority (NPPA), which has initiated the exercise of determination of ceiling price of coronary stents, is literally struggling to fix the ceiling prices of coronary stents as it could not compile sufficient data from the market for fixing the prices.
Following a notification issued by the Department of Pharmaceuticals (DoP) bringing coronary stents as part of Schedule-I of DPCO, 2013 vide S.O. 4100(E) dated 21.12.2016, the NPPA had initiated the process of determination of ceiling price of coronary stents. “Unlike other scheduled drugs, the market data of PTR is not being captured by AIOCD (Pharmatrac) because of the different nature of trade channels in case of coronary stents where hospitals/nursing homes are acting as de-facto 'Retailers'. In the given scenario, NPPA is compiling price related relevant verifiable data from different sources and not in a position, as of now, to calculate and upload draft 'provisional price' as per DoP letter no. 31015/44/2016-PI.I dated 11.7.2016”, the NPPA clarified in an office memorandum.
However, in spite of these limitations, in the interest of widest stakeholders' consultation, the NPPA has prepared a list of options of price control which is likely to be put up to Authority which, however, may consider any other option within the ambit of DPCO, 2013.
The options prepared by the NPPA include Average of Price to Distributors (PTD)/Price to Stockiest (PTS) + 16% Retailer Margin, if applicable; CGHS prices+ 10% Increase per annum as applicable in case of nonscheduled drugs under para 20; Cost of Production (CoP) + 35% Trade Margin for Domestic manufactured Stents as suggested by Sub-Committee report on Trade Margin; Landed Cost (LC) + 35% Trade Margin for Imported Stents as suggested by Sub-Committee report on Trade Margin; Average of (CGHS + PTD/PTS) + 16 % Retailer Margin, if applicable; and Any other Methodology suggested by stakeholders.
The NPPA has invited stakeholders to make representation with authenticated data/information within 10 working days to NPPA in order to take necessary action in the matter.