Govt’s capping of Trade Margin Leads 91% of brands of 5 Medical Devices Report Downward Price Revision up to 88%
In a significant decision by the Union Government, National Pharmaceutical Pricing Authority (NPPA) exercising extraordinary powers in public interest, has capped the Trade Margin vide notification dated 13 July 2021 for five Medical Devices, the Ministry of Chemicals and Fertilizers said.
These are pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer, and glucometer, it added.
“The margin was capped up to 70% on Price to Distributor (PTD) level. Pursuant there to, a total of 684 products/brands of these medical devices have been reported as on 23rd July 2021 and 620 products/brands (91%) have reported downward revision of MRP,” it said in a statement.
According to the Ministry, the maximum downward revision has been reported by imported brand of pulse oximeter, showing reduction of Rs 2,95,375 per unit. The downward revision of MRP has been reported by imported and domestic brands across all the categories. The highest reduction in prices for pulse oximeters, blood pressure monitoring machine and nebulizer has been reported by importers.
“The revised MRP effective from 20 July 2021 on all the brands and specifications has been shared with the state drug controllers for strict monitoring and enforcement. The relevant instructions are available on NPPA’s website www.nppa.gov.in. To monitor availability, the manufacturers / importers of these medical devices have been directed to submit quarterly stock details,” it said, addingA that the move has received support from industry associations like FICCI, AdvaMed, and AMCHAM.
Price Reduction Table:
| Sl. No | Medical Devices | No of Brands Reported after the Notification | No of Brands reported Downward revision of MRP | Maximum Reduction Reported in MRP – Rs | Percentage |
| 1A | Pulse Oximeter – Finger tip | 136 | 127 (93%) | 5,150 | 88% |
| 1B | Pulse Oximeter – Others | 73 | 62 (85%) | 2,95,375 | 47% |
| 2 | Blood Pressure Monitoring Machine | 216 | 195 (90%) | 6,495 | 83% |
| 3 | Nebulizer | 137 | 124 (91%) | 15,175 | 77% |
| 4 | Digital Thermometer | 88 | 80 (91%) | 5,360 | 77% |
| 5 | Glucometer | 34 | 32 (94%) | 1,500 | 80% |
| Total | 684 | 620 (91%) |
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