DGDA holds firm on heart stent prices, importers of European stents unhappy

Health

TBS Report
27 February, 2024, 06:35 pm
Last modified: 27 February, 2024, 09:49 pm
The decision aligns with the health ministry’s focus on managing rising healthcare costs

The Directorate General of Drug Administration (DGDA) has maintained its stance on the government-fixed prices of heart stents despite objections raised by importers of European stents.

For more than two months these importers have been urging hospitals to stop using their stents due to the price reductions implemented last December.

The DGDA, however, has said the existing price structure, established on 12 December 2023, will remain in effect.

The decision was made during a meeting chaired by Health Secretary Jahangir Alam at the DGDA on Tuesday (27 February). Nurul Alam, deputy director of DGDA, confirmed that the stents must be sold at the previously fixed prices.

A representative from the price fixation committee further clarified that the price will not be adjusted in the near future. Additionally, future price discussions will involve the DGDA directly communicating with the parent companies of stent manufacturers, bypassing the importers.

This decision aligns with the Ministry of Health's focus on managing rising healthcare costs. Earlier on the day, Health Minister Dr Samanta Lal Sen stressed the need to reduce medicine and heart stent prices to ensure affordability for patients.

On 12 December 2023, the DGDA lowered prices for 44 types of heart stents from 27 manufacturing companies. The reduction ranged from 3% to 46%. 

However, since the decision took effect on 16 December, importers of European stents have been urging hospitals not to use their products, claiming the need for price revision. This has left heart patients struggling to access stents.

Initially, importers of European stents filed a writ petition with the High Court, challenging the price fixation as discriminatory and seeking a fresh determination. However, they withdrew the petition on 10 January after the DGDA assured them of a price review.

Subsequently, the importers alleged that the DGDA selectively applied the 2017 markup formula only to three American companies during price fixation, neglecting the remaining 24 companies, including the European ones. Consequently, they halted the supply and sale of their stents until the prices are reassessed.

Wasim Ahmad of Epic Technologies, representing the importers of European stents, expressed frustration, saying, "We trusted the DGDA's assurances and withdrew a legal challenge, only to be left in the dark about future actions. Their decision appears to prioritise American companies."

The availability of European stents in hospitals remains uncertain as a final decision is pending, he added.

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