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.Also Read - Ensure Masks and Sanitisers are Not Sold Above MRP: Pharma Pricing Regulator Tells States
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%. Also Read - Coronavirus: Centre Asks State Govts, Regulators to Ensure Supply of Drugs at Affordable Prices
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. Also Read - Par panel seeks action against IT officers for irregular expenses assessment on freebies to doctors
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.