'Syringe, needle makers earn huge margin'

Manufacturers of syringes and needles - two basic items in any medical setup - enjoy a whopping trade margin ranging from 250-1,250%, according to a new analysis by the National Pharmaceutical Pricing Authority (NPPA).

Based on the sales data supplied by the manufacturers and importers of medical syringes and needles, the new NPPA analysis illustrates how these companies inflate the maximum retail prices of these products in order to enjoy high profit. According to industry sources, there are approximately 25 brands of syringes in India being sold by 20 companies.

Comparing MRP

When MRP is compared against the price offered to the distributor, the average trade margin on syringes varies between 250% and 650%. But the profit on these items can go up to more than 1,200% as the maximum trade margin depending on a particular brand.

There are at least three disposable hypodermic syringes where the maximum trade margin is nearly 1,250%. The average margin was more than 600% for two and nearly 500% for the third one. In several other cases, the maximum trade margin is higher than 1,000%.

The figures are lower for needles. Barring the insulin and biopsy needles, the average margin for other needles varies between 250% and 350% whereas the maxim margin ranges between 300% and 790%. The benefits are substantially lower for insulin and biopsy needles - 57% for the former and 83-98% for the latter.

The analysis on syringes and needles comes in the wake of NPPA reports on how the MRPs of a large number of medical devices and consumables are inflated in the Indian market benefiting the manufacturers and private hospitals.