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NPPA gives free hand to companies to withdraw stents

Last Updated 21 February 2018, 16:24 IST

Days after lowering the stent prices further, the government made it clear to the foreign manufacturers that they were free to withdraw their stents from $ 530 million Indian market if they can't sell their products within the ceiling price fixed by the NPPA.

The National Pharmaceutical Pricing Authority on Wednesday said, "In principle it has been decided not to disallow any application submitted for withdrawal of stents from the market by the stent manufacturers or importers."

However, those who want to withdraw from the market, would have to give a six-month notice and follow proper procedure to inform the government.

The NPPA warning comes days after the drug price regulatory body further slashed the price of drug-eluting stent while marginally increasing the price of bare metal stent.

The new ceiling prices for drug-eluting and bare metal stents are Rs 27,890 and Rs 7,660 apiece respectively.

Stents are life-saving medical devices used by heart specialists to save patients with blocked arteries. With India experiencing a heavy burden of cardiovascular diseases, the market for stents are on a steady rise.

In February 2017, NPPA fixed a ceiling price for the stents in consultation with the Union Health Ministry in the wake of reports of rampant overcharging by the companies and hospitals.

The government stand was criticised by the Medical Technology Association of India – an industry body mainly comprising big players who import their stents.

"The decision (of further lowering of price) is disappointing. It will limit patient choice and the availability of innovative technologies in the market," Pavan Choudary, director general of MtaI had stated.

Local manufacturers dominate the Indian market with more than 60% presence whereas US-based multinational firms occupy 33% space. Non-American multinationals captured 5% space while Chinese stents comprise only 1% of the Indian market, according to an NPPA analysis based on last three years of industry data.

Last year, at least two foreign companies “ Medtronics and Abbott “ sought the centre's permission to take out their latest range of stents from India, but the government invoked an emergency clause in the Drug Price Control Order 2013 citing public interest and asked them to maintain supplies for six months.

Later Abott withdrew their Alpine stent “ used to cost nearly Rs 1 lakh before price control “ but no other stents were taken out of the Indian market by the companies on account of price control, sources told DH.

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(Published 21 February 2018, 12:18 IST)

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