NPPA extends ceiling price of Knee Implants for another one year.

This came after the 101st meeting under the DPCO, 2013, held on 07th of September under the chairmanship of Shri Kamlesh Kumar Pant, Chairman, NPPA.

Earlier, the Medical Dialogues Team had reported that the National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers had extended the ceiling prices of knee implants for another one year, i.e. till 14th September 2021

At 101st meeting under the DPCO, 2013, the authority noted that the knee implant ceiling prices were notified via notification S.0 3670(E) dated 10th September 2021 which is in force up to 15th September 2022.

The Authority deliberated upon the matter in detail and noted the following requests made by various industry associations:

(i) For a one-time relief in the pricing of knee implants by invoking Para 19 of DPCO; and

(ii)To consider 20% increase in the ceiling price of knee implants on account of fluctuations in foreign exchange; increases in manpower costs, freight costs, WPI; and supply chain problems because of the on-going Russia-Ukraine war.

Furthermore, the authority observed that the annual WPI w.e.f. 01.04.2020, 01.04.2021, &01.04.2022 was 1.88468%, 0.53638% & 10.76607%, respectively. The prices were reviewed in consonance with the prevailing annual WPI which is 10.76607%.

In addition, The Authority also observed that the non-scheduled medical devices and drugs are monitored under para 20(1) of DPCO, 2013 and the Knee Implants are non-scheduled devices/ drugs.

"No annual increase was allowed in year 2020-21 and 2021-22 and companies were required to maintain the MRP prevailing during the year 2019-20 in the years 2020-21 and 2021-22." the Minutes of 101st Meeting added.

During 101st meeting under the DPCO, 2013, after taking all the above into consideration, the Authority decided,

"In continuation to the notifications S.O. 2668(E) dated 16th August, 2017 , S.O. 298(E) dated 13th August, 2018,5.0. 2934(E) dated 13th August 2019, S.O. 2764(E) dated l4th August 2020 ,S.O. 3147 (E)dated 1st September 2020 and S.0 3670(E ) dated 10th Sept 2021 regarding fixation of ceiling prices of orthopedics' knee implants under para 19 of DPCO, 2013, the ceiling price shall continue and be further monitored as per the provisions of paragraph 20(1) of DPCO, 2013. The notes (b) to (t) of the notification S.O. 2668 (E) dated 16.08.2017 shall remain in force during the currency of this order. Further, the ceiling price of orthopedics' knee implants will be reviewed after a period of one year."

In light of the above, through a recent notification, the National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has notified the extension of the fixation of the ceiling price of orthopedic knee implants for another year, citing,

"The National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India vide S.O. 2668(E) dated 16th August, 2017, S.O. 3987(E) dated 13th August, 2018, S.O. 2934(E) dated 13th August 2019, S.O. 2768(E) dated 14th August 2020, S.O. 3147 (E) dated 15th September 2020 and S.O. 3670(E) dated 10th Sept 2021 issued notifications under Para 19 of the DPCO, 2013 regarding fixation/revision of ceiling prices of the Orthopaedic Knee Implants for Knee Replacement System. In continuation to the above notifications, it has been decided that the same may be monitored as per the provisions of Paragraph 20(1) of the DPCO, 2013. This order shall be applicable for the period of one year from 16th September, 2022, unless revised by another notification."

Further the notice added, " The ceiling prices for orthopaedic Knee Implants will be reviewed after a period of one year."