Government caps prices of five key medical devices, including Oximeter

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The National Pharmaceutical Pricing Authority (NPPA) under the Ministry of Chemicals and Fertilizers has capped the prices for five key medical devices including the Oximeters. The apex regulatory body for controlling prices of pharmaceutical drugs capped the profit margin for distributors at 70 per cent under the trade margin rationalisation norms for five medical devices which will effectively bring down the Maximum Retail Price (MRP).

It directed manufacturers to fix the new MRPs for pulse Oximeter, blood pressure monitoring machine, nebuliser, glucometer and digital thermometer as per a new formula.

The NPPA has asked manufacturers to submit the details of the prices to distributors at retail level as well as existing and revised MRPs by July 20 when the new prices will come into effect. The prices of the devices launched after March 31 have already been fixed as per the new formula devised by the NPPA.

“No manufacturer, distributor, retailer shall sell these five medical devices… to any consumer at a price exceeding the revised rate or price indicated on the label of the container or the pack thereof, whichever is less,” said the NPPA order.

The price shall remain in force up to January 31, 2022, or until further orders, whichever is earlier, it added.

What do manufacturers have to take note of?

The manufacturers will also have to submit details, every quarter to the NPPA, regarding the manufacturing of the products, their import, sale and export.

It has entrusted the respective state drug controllers to ensure compliance of this order. “The manufacturers/ dealers/ hospitals/ medical institutions shall assist the state drug controllers… Any violation of this order is required to be brought to the notice of (the) NPPA,” the authority said.

Penalty

The NPPA order also mentioned a provision of penalty for the manufacturers not computing the MRP as per the new rule. They shall be liable to deposit the overcharged amount, along with 15 per cent interest per annum from the date of increase in price, apart from a penalty of up to 100% of the overcharged amount under the Drugs (Prices Control) Order, 2013, read with Essential Commodities Act, 1955, as per the NPPA order.

Besides, it has asked every retailer, dealer, hospital and health institution to display the price list and supplementary price list of these devices, as furnished by the manufacturer, “on a conspicuous part of the business premises” so that any person wishing to consult the same can easily access it.