Business · India Bureau
Medical device makers push for capped trade margins like cancer drugs
Domestic medtech manufacturers are seeking a uniform trade margin framework for medical devices similar to existing controls on cancer pharmaceuticals. The proposal would include importers' margins and initially focus on high-volume consumables such as intravenous sets.
LSN India ·
India's medical technology industry is making a fresh push for regulated trade margins on devices, drawing parallels with successful price control measures implemented in the pharmaceutical sector. Domestic manufacturers argue that a uniform framework governing profit margins across the distribution chain could bring transparency and affordability to the medtech market, currently fragmented by varying markups at different distribution levels.
The proposal specifically targets importers' margins, which manufacturers contend remain unregulated despite influencing final device costs. Industry representatives are advocating for a pilot programme focusing initially on high-volume consumables such as intravenous sets, which represent a significant portion of hospital procurement expenses and affect a large patient population.
The move reflects growing industry concern over pricing structures in the medical devices sector. Unlike pharmaceuticals, where margin caps have been applied to select categories including cancer medicines, the devices market operates with minimal regulatory oversight of distributor and importer markups, leading to variable pricing across regions and healthcare facilities.
If implemented, the framework would establish standardised margins for manufacturers, wholesalers, and retailers, potentially reducing costs for hospitals and patients while ensuring sustainable returns for supply chain participants. Industry observers note that such measures could particularly benefit tier-2 and tier-3 healthcare facilities that lack bargaining power against major distributors.