Systematic abuse of pricing by US MNCs, says AiMeD

The Association of Indian Medical Device Industry (AiMeD) has written to Bhupendra Patel, Chief Minister, of Gujarat that the discriminatory pricing mechanism introduced through a notification issued on March 10, 2025, by the Commissionerate of Health, Medical Services & Medical Education, Government of Gujarat is penalizing Indian manufacturers who today hold over 73% of the domestic market and export over 500,000 stents annually to more than 100 countries.

This policy allocates ₹25,000 for USFDA-approved Drug-Eluting Stents (DES) and only ₹12,000 for Indian-manufactured DES.

The association has submitted evidence that US MNCs abuse this pricing structure to regain market dominance and eliminate Indian manufacturers. It has submitted evidence that MNCs bill hospitals at ₹25,000 (the official reimbursement price) to appear compliant with the notification. Subsequently, they issue credit notes of ₹12,000 to ₹13,000 per stent- effectively reducing the actual selling price to ₹12,000. This additional ₹12,000-₹13,000 is passed on to hospitals as an incentive to ensure they only procure stents from these MNCs, completely shutting out Indian manufacturers.

Indian manufacturers are unable to compete because they lack margins. The direct consequence of this is that Indian companies, which manufacture, export, and employ thousands of people in India, are being systematically forced out of the market in their own country.

If this biased policy continues, AiMeD fears that Indian stent manufacturers will suffer losses exceeding ₹2,000 crore, leading to job losses and plant shutdowns. US MNCs have been in India for over three decades but have not set up any significant manufacturing units to make stents etc, while Indian companies have built a world-class manufacturing ecosystem. By prioritizing foreign-made products, this decision directly contradicts the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives and places USFDA approval above DCGI approval, questioning the credibility of India’s regulatory system.

The association has urged the ministry to repeal this discriminatory pricing notification and ensure fair reimbursement rates tor Indian-manufactured DES.
MB Bureau