New Delhi, March 7: The National Pharmaceutical Pricing Authority (NPPA) analysed profit margins on syringes and needles, and found that inflated maximum retail prices (MRPs) ensured that trade margin for the distributors crosses well over 1200 percent. Hospitals are the beneficiaries in case of inpatients. The average profit margin on syringes was found to be 500 percent.
NPPA analysis revealed that hypodermic disposable syringes cost Rs 2.4 to distributors, but sold at Rs 18.6, which translates into a margin of 664%. The highest margin was charged at 1,247%.
An epidural needle cost Rs 160 to the distributor, however, its MRP is Rs 730– a margin of 356 percent. Disposable hypodermic needles’ attract margins of 270-789 percent.
All India Syringe and Needle Manufacturers Association (AISNMA) had suggested a 75% trade margin. However, two foreign and two Indian companies declined the offer. AISNMA sought a government regulation on trade margins.
Medical Technology Association of India said that the government must cap overall trade margins and let the market decide how its is shared. It sought implementation of the Department of Pharmaceuticals’ report on trade margins, reported the Times of India.