To ensure accessibility of necessary medical devices to the common man at genuine cost, drug price regulator, National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers has extended ceiling prices of knee implants for another one year, that is till 14 September 2021.
A notification dated NPPA has issued 15 September 2020 under Drug Price Control Order(DPCO), 2013 (Annex-II)in this regard.
NPPA vide Order No. S.O. 2668(E), dated 16 August 2017 for the first time, fixed the ceiling price of orthopedic knee implants for one year. This was extended for further one year on 13 August 2018 and then on 15 August 2019. The above period ended on 15 August 2020, and the ceiling prices for knee implants for a knee replacement system was due for review by 15 August 2020.
NPPA in July 2020 directed all companies manufacturing and importing primary and revision knee systems to submit sales data from July 2018 to June 2020. In its meetings held on 6 August 2020, NPPA, after observing the data collected from 14 major companies (10 importers and four domestic manufacturers), decided that the ceiling prices for knee implants as applicable on 15 August 2020 may be further extended up to one month up to 15 September 2020.
The matter was discussed again in the authority meeting held on 14 September 2020. In the meeting, it was noted that fixing ceiling prices for orthopedic knee implants in the year 2017 had resulted in price reduction up to 69%, and domestic manufacturers market share has risen by 11% over two years, which is in line with the Government’s motto of ‘Atmanirbhar Bharat’.
Keeping this in view, it was felt necessary that the ceiling price system continue to be regulated in the broader public interest. Accordingly, the authority decided to extend the existing ceiling prices for another year (up to 14 September 2021) and a notification dated 15 September 2020 was issued in this regard. According to the press release, the move has enabled to save 1500 crore rupees of the common man.