NPPA’s preliminary analysis of common components used in knee implants shows profit margins for distributors and importers can be as high as 135%.
After slashing the prices of cardiac stents by over 150 per cent the National Pharmaceutical Pricing Authority (NPPA) is all set to bring in price capping for orthopedic knee implants. In a preliminary report compiled after checking the prices of key component used in the procedure from manufacturers and distributors, the government has found that the profit margins of distributors and hospitals is as high as 313 per cent.
While the minimum and maximum landing price of a femoral implant is Rs 10,615 and Rs 29,470 respectively at the start, by the time it reaches the patient the minimum MRP snowballs to Rs 26,000 and the maximum MRP is Rs 1,69,123, the report found.
When the NPPA authorities looked at the price of the total knee system, they found that the maximum landing price was Rs 65, 781, which eventually becomes Rs 4,13,059 when the margins of the importers and distributors are considered. The patient ends up paying six times the price of the orthopedic implants at the end.
The trade margins for the importer for a total knee system was found to be 76 per cent while distributors and hospitals raked in a profit margin of 135 per cent. The total trade margin was found to be a whopping 313 per cent.
The government has given manufacturers, traders, distributors, and other stakeholders a time of one week to raise objections following which the NPPA will step in to control the prices.