NPPA Extends Trade Margin Capping On Five Medical Devices Till July, 2022

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New Delhi : The National Pharmaceutical Pricing Authority (NPPA) has extended the timeline for the trade margin capping of the five medical devices which are essential during the Covid-19 pandemic period till July 31, 2022.

The Authority has issued an order that the capping on the trade margin of the five medical devices – pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer and glucometer – at 70 per cent at first point of sale, to be extended from the earlier period ending January 31, 2022, to July 31, 2022.

NPPA initiated the margin capping through a notification in July 13, 2021, under the Drugs (Price Control) Order, 2013, at the first point of sale of these products through Trade Margin Rationalisation (TMR) approach. The related notes issued with the order in July, shall remain in force during the currency of the new order, it added.

The notification mandated to fix the Maximum Retail Price (MRP) as per the specified formula: “Maximum Retail Price = Price to Distributor (PTD) + (PTD x TM) + Applicable GST, Where TM = Trade Margin not exceeding 70%.”

NPPA, through an office memorandum on July 14, also directed manufacturers and importers of these medical devices to submit revised MRPs of their products, in pursuance to the price capping. Based on the data provided, the downward revision of MRP was reported by imported and domestic brands across all the categories.

Following this, a total of 1,132 products, including 277 pulse oximeters, 329 blood pressure monitoring machines, 105 glucometers, 164 digital thermometers and 257 nebulisers have reported prices of which 1,033 (91%) reported downward revision of MRP. The decrease in MRP was between Rs.12 to Rs. 2,95,375 (1%-89%) for pulse oximeters, Rs. 20 to Rs. 38,776 (1%-83%) for blood pressure monitoring machine, Rs. 30 to Rs. 2,250 (1%-98%) for glucometer, Rs. 8 to Rs. 44,775 (1%-89%) for digital thermometer and Rs. 56 o Rs. 6,165 (1%-83%) for nebuliser, according to NPPA.

The price regulator, through a notification on March 31, 2020 has brought that all medical devices including pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer, and glucometer, to be governed under the provisions of DPCO, 2013 with effect from April 1, 2020.

It may be noted that earlier, the Authority has also extended the capping of trade margin of oxygen concentrators at the first point of sale for fixation of maximum retail price from November 30, 2021 to May 31, 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 were observed, said NPPA officials.

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