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Medical device importers ask
govt to incentivize innovations for economies of scale for affordability
September 7, 2020
Medical device importers have urged the government
to incentivize innovations towards economies of scale for their affordability to
common man.
This comes close on the heels of the government’s
plan to create a separate category for 'innovative' knee implants that can be
kept out of price control to encourage innovations and research and development
in line with the demand from implant manufacturers. The National Pharmaceutical
Pricing Authority (NPPA) is currently deliberating on the ceiling costs of the
knee implants as there have been calls from the trade to create a separate class
for revolutionary implants.
Commenting on the move, Pavan Choudary, chairman,
Medical Technology Association of India (MTaI) said, “When innovations are
incentivized, the entrepreneurs behind them get the fuel to scale. Once scale
comes, prices come down and the innovation reaches the masses. Since the
Innovator takes the risk and covers the R&D and deployment cost, he should be
incentivized. So if the government is indeed thinking on these lines, it is
surely the prudent and far-sighted way forward, which will benefit both the
domestic and the global innovators.
He further added, “For example, sectors which,
guided by the circumstance of their evolution could not offer a higher quality
to the discerning customers, have lost market to competitors which could. The
power industry has lost the customer who desired and could afford a more
reliable power supply to the private captive power generators.”
NPPA had allowed companies to make 10% hike for
their knee implant for their knee implants products last year.
However, Rajiv Nath, forum coordinator, Association
of Indian Medical Device Industry (AiMeD) argued, “Earlier also clinically
superior medical devices including knee implant could be kept outside of price
capping if the claim of clinical superiority was proven by the innovation. We
agree innovation needs to be incentivised but not on frivolous grounds purely on
marketing claims.”
The national pricing regulator had brought knee
implants under price control in 2017 and slashed prices by upto 70% by using
extraordinary powers per DPCO -2013. Medical device importers have been unhappy
with the price cap arguing that it dissuades R&D in this crucial segment. The
move has upset many companies selling knee implant products which have been
asking for some relaxation for a long time.
However, according to Malini Aisola from All India
Drug Action Network (AIDAN), “Categorizaton in price control for knee implants
based on innovation is not justified.” As per DPCO- 2013, higher ceiling prices
can be granted for products that can demonstrate and provide evidence of
incremental benefits over existing products. It has been learnt from industry
sources that none of the companies has been successful in getting an upward
revision of ceiling price on the basis of their claims in terms of innovation or
advancement.
This is not unusual, say some industry experts,
keeping in mind that substantive innovations can sometimes take several years
and the price control regime on implants in India is just a couple of years old.
http://pharmabiz.com/NewsDetails.aspx?aid=130896&sid=1
Goa hopes to qualify for medical
device park, appoints consultant
September 24, 2020
Panaji: The state cabinet on Wednesday approved the
appointment of PricewaterhouseCoopers to prepare a detailed project report (DPR)
for setting up of a medical device park at Verna.
Goa, along with Gujarat, Telangana, Andhra Pradesh
and Himachal Pradesh are trying to woo Japanese manufacturers with incentives to
invest and manufacture bulk drugs and medical devices.
Goa’s industries department is in talks with the
Centre to explore the possibility of setting up a manufacturing cluster for
medical devices.
https://health.economictimes.indiatimes.com/news/medical-devices/goa-hopes-to-qualify-for-medical-device-park-appoints-consultant/78293690
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