Question : Stent Prices

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether it is a fact that the National Pharmaceutical Pricing Authority (NPPA) has undertaken a cost analysis of coronary stents and found that the existing prices of stents were irrational and exorbitant resulting in heavy profiteering by every player involved in the trade;

(b) if so, the details thereof;

(c) whether the NPPA has also alleged involvement of hospitals in hiking the prices of stents though they do not contribute to its value additions to any extent; and

(d) if so, the action taken/proposed to be taken by the Government in this regard?

MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS; MINISTRY OF SHIPPING AND MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI MANSUKH L. MANDAVIYA)

(a) to (c): Yes, Madam. National Pharmaceutical Pricing Authority (NPPA) collected data on cost of production from manufacturers and also the landing cost of imported stents from the importers during the process of price fixation of coronary stents and comparing this data with the maximum retail price (MRP) revealed huge trade margins and irrational profiteering at each stage. It was also noticed that the margins to hospitals were exorbitant and maximum upto 654%.

(d): NPPA notified the ceiling price of Coronary Stents vide its notification dated 13th February 2017 at Rs. 7,260/- for Bare Metal Stents (BMS) and Rs. 29,600/- for Drug Eluting Stents (DES) (including Bioresorbable Vascular Scaffold (BVS) and Biodegradable Stents). As per data provided by the stent manufacturers and importers before price notification, the average MRP was Rs. 45,100 for BMS and Rs. 121,400 for DES. The price reduction therefore worked out to 85% for BMS and 74% for DES from the average MRP prevailing prior to notification.
Subsequently, after considering the wholesale price index for the year 2016 over 2015, the prices of stents have been revised with effect from 01/04/2017 as Rs. 7,400 for BMS and Rs.30,180 for DES. Further vide notification S.O. 639(E) dated 12/02/2018, NPPA revisited and revised the prices of cardiac stents at Rs. 7,660/- for BMS and Rs. 27,890/- for DES. NPPA issued various Office Memoranda for ensuring compliance of coronary stent price cap. The notifications are available at the website of NPPA i.e. www.nppaindia.nic.in. The Government is effectively monitoring the implementation of ceiling prices fixed for coronary stents.

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