NPPA to monitor price of oximeter and oxygen concentrators

The National Pharmaceutical Pricing Authority (NPPA) has asked manufacturers of oximeters and oxygen concentrators to submit price details of the two products. The NPPA that regulates the prices of pharmaceutical products and medical devices is monitoring the prices of these two devices under the Drug Price Control Order (DPCO).

The central government’s pricing authority has not only asked for MRPs but also details of the price at which the manufacturer or importer sells it to the distributor, hospital, and the moving annual turnover which is the cumulative sales value for 12 months.

The DPCO is the base document for pharma and devices pricing.

Apart from asking manufacturers to submit pricing details of these devices, the NPPA has asked them to not violate the price increase mechanism. “In view of the above, all Manufacturers/Importers of aforesaid Medical Devices are hereby advised to ensure compliance of the provisions of Para 20 of the DPCO, 2013 failing which action may be initiated for violation of provisions of DPCO, 2013 read with Essential Commodities Act, 1955,” NPPA said in its office memorandum.

According to the DPCO and the Essential Commodity Act, prices of these devices cannot be increased by more than 10 per cent a year. The domestic manufacturers have represented to the authority asking them not to cap the upper limit to 10 per cent.

In a representation to the NPPA, the Association of Indian Manufacturers of Medical Devices (AiMeD) has asked the pharma and medical devices pricing authority to use artificial intelligence to come to a price cap.

"We request that if NPPA is planning an MRP Cap on Pulse Oximeter and Oxygen Concentrator then the AiMeD formula of 2-3 times import landed prices is followed (details enclosed) to allow a fair float for resellers without allowing profiteering & exploitation," AiMeD said in its letter addressed to the NPPA chairman. "If NPPA does not listen to AiMeD and continues to follow drugs-based DPCO then MRP can’t be increased by over 10 per cent in a year, which is not sustainable."

"That’s why we have been consistently seeking NPPA to create an automated artificial intelligence controlled price monitoring mechanism with customs and department of revenue and use AiMeD’s formula to protect Consumers and Ethical Overseas and Indian Manufacturers from price spikes," the letter said.