Medical Device Price Reduction

Government implemented price controls on coronary stents and knee replacement implants in India that have slashed prices by as much as 85 per cent and 70 per cent, respectively.

Government has signalled that price caps for additional life-saving and life-improving medical devices may be forthcoming.

American companies producing medical devices and health information systems have approached the US Trade Representative against India’s move to implement price controls on coronary stents and knee replacement implants that they say denying them equitable market access.

In a petition, the Advanced Medical Technology Association (AdvaMed) requested the US Trade Representative (USTR) to suspend or withdraw India’s benefits under Generalised System of Preferences (GSP)

Recent reports indicate that the lowering of prices on medical devices which are only one component of overall procedure costs are not being passed along to patients, which needs to be corrected.

Price controls may also block innovations and limit patient access to the best available care.

The failure to implement a mutually acceptable alternative could deter global organisations from making their latest products available to India’s health care providers and patients, make Indian innovators less competitive in global markets, negatively impact future investment in India, and ultimately harm patients.

India’s focus on controlling prices of high-quality medical devices, without any attempt to address the larger picture and correct inefficiencies

A stable and predictable market environment is key to driving investments in R&D, manufacturing, and other services to grow the medical technology industry in India, and meet the current and future needs of all of India’s people.