Government may list 'essential medical devices', cap trade margin in 30-50% range

The government is preparing a list of "essential medical devices" to introduce anti-profiteering measures such as capping trade margins in the range of 30-50%, according to a report in The Times of India.

The list will stop distributors, wholesalers, retailers and even hospitals from drawing wide margins on products such as stents, catheters and implants, .

Moneycontrol could not independently verify the report.

The cost of most medical devices is currently out of government control. Currently, only cardiac stents, drug eluting stents, condoms and intra uterine devices fall under the National List of Essential Medicines. Knee implants too, have recently been brought under government purview.

The Indian Council of Medical Research (ICMR) may finalise the list after meeting stakeholders on July 26, the report said.

The Department of Pharmaceuticals (DoP), and National Pharmaceutical Pricing Authority (NPPA) have recommended capping the trade margin at 30 percent, the report said.

NITI Aayog had initially proposed a cap of 65 percent, but lowered it to 50 percent after intervention from the Prime Minister’s Office.

Commerce Minister Piyush Goyal had last week met representatives to discuss pricing of medical devices.