MedTech associations welcome NPPA’s consultation on stent price cap revision

Aimed at creating a consensus on the matter pertaining to the revision of medical stent price capping, this meeting organized by National Pharmaceutical Pricing Authority was attended by representatives from both the global and domestic associations


New Delhi: The National Pharmaceutical Pricing Authority (NPPA) on 5th February held a consultation meeting with the medical technology sector stakeholders in New Delhi. The meeting was chaired by Mr Bhupendra Singh, Chairman, NPPA.

Aimed at creating a consensus on the matter pertaining to the revision of medical stent capping prices, this meeting was attended by representatives from both the global and domestic associations. The next meeting for broader consultations will be held on 8th February.

Global MedTech associations positive about consultations 

In its reaction, AdvaMed thanked the NPPA for what it called the efforts to consult with industry on its process for revisiting the stent pricing decision. “We think that the meeting was constructive and we hope that NPPA recognizes the need for rewarding incremental innovations,” mentioned its statement.

AdvaMed further stated that it is keen to collaborate with the government for an optimum solution that serves patients by giving them a choice of advanced medical devices. “Innovative medical device companies are driven by research and quality. Therefore, in the interest of preserving the environment for innovation and ensuring that the patients in India have access to high-quality stent technologies; we continue to urge the government to consider differential pricing for Drug-Eluting Stents,” the association stated.

AdvaMed’s key recommendations to NPPA included the need to consider alternatives to price control such as trade margin rationalization and more scientific approaches that facilitate differential pricing for innovative medical technologies and complement the government’s vision of providing quality and affordable healthcare for all.

AdvaMed said it has taken cognizance of the draft report by the government’s “Committee on High Trade Margins in the Sale of Drugs” that recommended capping of margins from “Price to first level in the trade or Price to Distributor till MRP” to 50%. It explained: “This will bring in rationalized margins to various segments of medical devices, thereby, bringing down the cost of devices as well as bring greater transparency in pricing. It will invalidate the need for measures such as price control as fair margins are provided to all stakeholders, also enabling companies to bring in new and innovative technologies faster in India.”

In his reaction, the Medical Technology Association of India(MTaI) Chairman and Director General, Mr Pavan Choudary thanked NPPA Chairman and his team for an inclusive and receptive atmosphere for the meeting.

Commenting on his suggestions to NPPA, he said, “MTaI suggests that NPPA should consider creating sub-categories for stents to ensure that significant technological innovation stays commercially rewardable.”

As per MTaI, for medical devices generally, it has endorsed the recommendations of DOP’s ‘Report of the Committee on High Trade Margins in Sale of Drugs – 2016’. It believes the recommendations will improve patient access remarkably.

“Continuing in the spirit of inclusiveness, we request the Ministry of Health and Family Welfare to reconstitute the NLEM committee to enable inclusion of representatives from other relevant sections of the healthcare ecosystem. The broader constitution will give a real chance to the committee to review its previous decision on price capping. The committee, in its current form, is invested in the decision it took last year and the review would be fair if it is done by a broader panel,” stated Mr Choudary.