The prices of cardiac stents are all set to upsurge since the government has permitted stent makers to increase prices. The new prices increase by almost 8 percent each year.
In a notification of March 31, the National Pharmaceutical Pricing Authority (NPPA) elevated the upper limit price of the most frequently utilized drug-eluting stent (DES) to around ₹ 30,080 from ₹ 27,890. Also, it increased the price of bare metal stents to approximately ₹ 8,261 from around ₹ 7,660.
Goods & Services Tax (GST)
Drug-eluting stents or in other words stents coated with a drug institute around 95 % of the entire market. Both these are exclusive of Goods & Services Tax (GST) which is charged at around 5 %.
In addition, two prominent players in the segment include Abbott India, Sahajanand Medical Technologies (SMT) as well as Translumina Therapeutics.
Furthermore, the government has permitted manufacturers vending stents lesser than the reviewed ceiling price to increase the maximum retail price (MRP). It is based on the Wholesale Price Index (WPI) at around 4.2662 % for the year 2018.
Additionally, a stent is a small expandable metal scaffold in order to accelerate narrowed or else weakened arteries. So as to make certain the flow of blood. Hence avoiding risks related to heart attacks.
The price modification became impending after the previous year’s price cap order failed on March 31.
Moreover, this the 1st time ever happened that the government raised up the prices of stents after it had capped the prices in February 2017 by almost 85 % in order to check corrupt profiteering as well as exploitive pricing & also to make sure that the fair, reasonable and inexpensive price for coronary stents.
National Pharmaceutical Pricing Authority
The NPPA (National Pharmaceutical Pricing Authority) established that the trade margin enjoyed by the suppliers for sale to the hospitals was ranging somewhere between 13 % & 196 %. Moreover, the margin earned by the hospitals was even more than 11 % to 650 %. Also, it levied around 8% trade margin cap that might cover margins all over the trade channels, operational right from the level of producers to the end-user, even including charges of hospital-handling.
The government grounded its decision over the report of sub-committee that had recommended putting all kinds of stents. Containing the latest biodegradable stents, on top of the list of NLEM (National List of Essential Medicines) in April 2016. Medicines, as well as devices listed in the NLEM, are supposed to be sold at the price fixed by NPPA.
As per the report of sub-committee, approximately 25 % of demises in India are because of cardiovascular diseases (CVD). Amongst which Coronary artery disease (CAD) is the most common CVD type that accounts for around 90 to 95 % of all CVD cases as well as demises.
Lastly, in India, only around 3 out of 1,000 coronary heart disease indigent patients get treatment with angioplasty. It is too low as compared to 32 in the United States. India expects that a total of around 6 lakh stents to embed.