Download notification No. S.O. 401(E) dt. 31-01-2022: The National Pharmaceutical Pricing Authority (NPPA) has extended the timeline for the trade margin capping of the five medical devices that are essential during the C-19 pandemic period till July 31, 2022, vide notification No. S.O. 401(E) dt. 31-01-2022.

Download notification No. S.O. 401(E) dt. 31-01-2022.

Till July 31, 2022

The Authority has issued an order that the capping on the trade margin of the following five medical devices at 70 per cent at first point of sale, to be extended from the earlier period ending January 31, 2022, to July 31, 2022:

- Pulse oximeter
- Blood pressure monitoring machine
- Nebuliser
- Digital thermometer
- Glucometer

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NPPA initiated the margin capping thru a notification on July 13, 2021, under the Drugs (Price Control) Order, 2013, at the first point of sale of these products thru the Trade Margin Rationalization (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%."

In pursuance of the price cap, the NPPA, thru an office memorandum on July 14, also directed manufacturers and importers of these medical devices to submit revised MRPs of their products.

Based on the data provided, the downward revision of MRP was reported by imported and domestic brands across all the categories.

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Following this, a total of 1,132 products have reported prices of which 1,033 (91%) reported downward revision of MRP, which includes:

- 277 pulse oximeters,
- 329 blood pressure monitoring machines,
- 105 glucometers,
- 164 digital thermometers
- 257 nebulisers

According to NPPA 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
- Rs. 56 o Rs. 6,165 (1%-83%) for nebuliser

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 was observed, said NPPA officials.

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