NPPA Extends Price Regulation On Oxygen Concentrators Till June 30

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New Delhi : The National Pharmaceutical Pricing Authority (NPPA) has further extended the capping on the trade margin of oxygen concentrators for one more month, till the end of June, 2022.

The trade margin rationalisation (TMR) was announced in June, 2021, in the backdrop of increased use of oxygen concentrators during the Covid-19 pandemic, since the virus mainly affects the respiratory system of a patient, especially those with co-morbidity such as diabetes, cardiac problems, among others.

In an order on May 30, regarding capping the trade margin of oxygen concentrators at first point of sale or price to distributor, for fixation of maximum retail price of the product.

“In continuation to the notifications, capping the trade margin of oxygen concentrator at first point of sale (price to distributor) upto May 31, 2022 is further extended upto June 30, 3022 or till further order,” said the NPPA order.

The Authority in June, 2021, notified that the Government has put a cap on the trade margin of oxygen concentrators at the first point of sale of the product, at 70 per cent.

It has later extended it in November, for six more months, till May 30, 2022 as the order in June was valid only till November 30, 2021. The period to report stock details of four medical devices – Bare metal stents, drug eluting stent, orthopaedic knee implants and oxygen concentrators was also relaxed from monthly to quarterly basis during the same period.

The Authority, in its meeting held on November 15, noted that the notification issued in June, 2021, related to price regulation of Oxygen Concentrators based on TMR approach is applicable to November 30, 2021. Recommendations of the Standing Committee on Affordable Medicines and Health Products (SCAMHP) in its fourth and fifth meeting held on May 25 and 30, this year, was also taken into note by the authority, before deciding on the extension of the price regulation period.

“The Authority deliberated upon the matter in detail and was of the opinion that as Covid pandemic is still a risk to public health; availability of oxygen concentrators at affordable prices must be ensured,” said the minutes to the meeting.

Hence, it was decided that the notification be extended, before it expires, for another six months up to May 30, 2022.

The move resulted in price reduction of 70 out of 252 products and the MRP was reduced up to 54% (up to Rs 54,337). The pricing of oxygen concentrators did not adversely impact domestic production and no disruption in supplies was observed, said NPPA officials.

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