MedTech Industry Supports Maharashtra FDA's Call for Fairer Pricing
Maharashtra FDA's push for transparent pricing gains support from MedTech sector amid massive price disparities in hospital consumables.
The push for more transparent trade margin caps on hospital consumables by Maharashtra FDA Commissioner Tukaram Mundhe has garnered significant support from the MedTech industry. The Association of Indian Medical Device Industry (AiMeD) and the Medical Technology Association of India (MTaI) have both endorsed this initiative, which highlights the inadequacies of the current regulatory framework under the Drugs (Prices Control) Order, 2013.
Massive Price Disparities Highlighted
The Maharashtra FDA recently reported alarming price disparities of up to 2,841% between the procurement cost and the printed maximum retail price (MRP) of hospital consumables. This revelation has prompted calls for action to ensure fair pricing and protect consumers from inflated costs. AiMeD has pointed out that patients are often left vulnerable, unable to negotiate or choose devices, while ethical manufacturers face pressure to either conform to a distorted system or exit the market.
In a statement, AiMeD urged the government to implement structured price monitoring and margin rationalization, suggesting pilot studies based on their proposals. The association emphasized the need for an affordable, ethical, and globally competitive medical device ecosystem in India.
Support from Key Industry Players
MTaI has also expressed support for Mundhe's recommendations, which include rationalizing margins, conducting an inter-agency review, and establishing clear guidelines on the acceptable differences between trade procurement costs and declared MRPs. Pavan Choudary, Chairman of MTaI, stated that these steps align with the association's long-standing position on Trade Margin Rationalization (TMR).
Choudary highlighted TMR as a proven tool that enhances market transparency and predictability while preserving the necessary investments for innovation and healthcare worker training in India's MedTech sector.
Calls for Government Action
The MedTech industry's backing of Mundhe's proposals underscores the urgent need for regulatory reforms to address pricing issues in the sector. Both AiMeD and MTaI are urging policymakers to take decisive action to establish fair pricing mechanisms that benefit consumers and support ethical business practices.
As the conversation around trade margin rationalization gains momentum, the MedTech sector's support signals a collective push towards creating a more equitable market environment for medical devices in India.