AiMeD pushes for markup cap on medical devices after drug price cap

The National Pharmaceutical Pricing Authority approved a 30% markup cap on anti‑cancer drugs a day before the Association of Indian Medical Device Industry (AiMeD) called for a similar cap on medical‑device margins. AiMeD said it has always supported trade‑margin rationalisation for devices but warned that the design of any cap will determine its effectiveness.

AiMeD cautioned that earlier price interventions – the 2019 cap on cancer drugs and caps on a few COVID‑critical devices – were applied from the price at which products were sold to distributors. It noted that the importer’s sale to distributors becomes a second point of sale, while the domestic manufacturer’s sale to distributors is the first point of sale, leaving importer margins outside the capped chain and pushing the final MRP about 43% higher than the domestic equivalent.

The body outlined four recommendations: treat the importer as the first point of sale and include its margin in the capped chain; apply identical margin discipline to both domestic and imported products; pilot the scheme on selected high‑volume consumables using a rationalised band that avoids shortages; and adopt a uniform national framework designed in consultation with manufacturers.

AiMeD said it is ready to work with the Department of Pharmaceuticals and NPPA. Forum coordinator Rajiv Nath urged the department and media to bring all stakeholders to the table so that every participant in the supply chain earns a fair return while patients are protected. He said rationalised, evidence‑based, nationally uniform margin bands protect patients and keep supply chains viable.

Editor's note: The draft clearly explains the industry body's position and its specific suggestions for margin regulation.