Trade margin regulation on critical medical devices
Chemicals and Fertilisers Ministry said that the prices of around 620 brands have witnessed a reduction in prices so far as the government has capped trade margins on five critical medical devices used extensively in the treatment and prevention of COVID-19. These include pulse oximeter, glucometer, BP monitor, nebuliser, and digital thermometer. On July 13, the National Pharmaceuticals Pricing Authority (NPPA) had invoked extraordinary powers under the Paragraph 19 of DPCO, 2013, to put a cap on trade margin of these devices by up to 70% w.e.f. July 20.
“Pursuant there to, a total of 684 products/brands of these medical devices have been reported as on July 23, 2021 and 620 products/brands (91 per cent) have reported downward revision of MRP,” the Ministry said. It went on to say that the maximum downward revision – of Rs 2,95,375 per unit – has been reported by an imported brand of pulse oximeter. It also observed that existing trade margins on the five medical devices ranged up to 709% from price to distributor to MRP level.