Health device makers ask for 50% cut in margins

The Department of Pharmaceuticals have suggested trade margins for devices priced above Rs 100% cent; for devices below Rs 1,000, a margin up to 75 %. It would help to reduce India’s dependence on import of medical devices, presently 70 %. The manufacturers are debating on the definition of the ‘first point of sale’ for  imported devices. “One view is that importers are also traders and the journey of trade margins should start from the import price itself,” says a NITI Aayog concept note. This means the maximum retail price be computed by adding the landed cost and percentage of trade margins allowed by the government. Data from device makers has been collected by National Pharmaceutical Pricing Authority . At present, 23 medical devices have been notified as drugs and are regulated under the Drugs and Cosmetics Act. Of these, four – cardiac stents, drug elating stents, condoms, and intrauterine devices – are in the National List of Essential Medicines and subject to notified price ceilings.