Health advocacy groups skeptical over syringe, needle price cap move by manufacturers
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Arun Srinivasan, New Delhi
January 10 , 2018
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As the clock ticks on the deadline set by the National Pharmaceuticals
Pricing Authority (NPPA) to set price cap on syringes and needles, a
pre-emptive move by the manufacturers’ association to self-regulate the
prices fails to bring cheer to health activists and NGOs.
The
NPPA has asked syringe and needle manufacturers to set trade margins at
maximum 75 per cent over discounted ex-factory prices including GST on a
voluntary basis and comply with it by January 26.
“Self-regulation,
which cannot be enforced, does not guarantee compliance. We cannot
trust the industry on this. A regulatory framework is imperative. I
think the NPPA should step in to ensure a level-playing field,” S
Srinivasan, co-founder of Locost and a prominent member of the All India
Drug Action Network (Aidan), told Pharmabiz. Aidan is an independent
network of several non-government organisations working to increase
access and improve the rational use of essential medicines.
The
drug price regulator has stepped in to cap MRP and margins allowed on
disposable syringes and needles after a probe report recently revealed
that some hospitals are taking margins of anywhere from 1,000 per cent
to 1,700 per cent on procurement prices. An earlier decision to put a
cap on stents and orthopedic implants had slashed the prices of these
products substantially.
“The regulator takes a decision on
pricing keeping in mind the interests of the people. They arrive at a
decision after holding discussions with the pharmaceutical industry
representatives and other stakeholders. The industry groups should
comply with these guidelines for the greater good of society,” said Dr
Naresh Sharma, newly elected president of the Indian Pharmaceutical
Association, Delhi branch.
According to an All India Syringes
and Needles Manufacturers Association statement, the manufacturers will
implement the new prices from January 26. "This period is to allow all
manufacturers to clear their packaging material stock with current MRPs
and enable a smooth transition," the group said in the statement.
“The
move to cut trade margins is a voluntary action by a group of Indian
manufacturers. Its success depends on the willingness of all companies
to conform to it. But not all firms, particularly the multinationals,
are part of the initiative,” Srinivasan pointed out.
“It is the
private institutional buyers that are taking advantage of high MRPs to
reap profits. They can still force manufacturers or a section of them to
continue business as usual,” he added.
The price caps will be
applicable to all categories of syringes and needles including
disposable, auto disposable, reuse prevention, needle stick prevention
and insulin pen needles.
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