India's knee implant, cardiac stent price caps at odds with Trump's trade philosophy: 5 things to know
Written by Laura Dyrda | April 18, 2018 | Print | Email
India revealed plans to implement a price cap on medical devices last year and the U.S. plans to review import benefits as a result, according to The Wire.
Here are five things to know.
1. India placed price caps on devices including cardiac stents in February 2017 and 15 orthopedic knee implant systems in August. U.S.-based device companies have voiced concerns about the price caps for technology advancements, arguing they need a higher price.
2. Some U.S. companies have reported applications to withdraw the advanced products from India because of the price cap policy, but Indian regulators rejected the applications.
3. India's Drug Price Control Order states companies aren't able to withdraw stocks suddenly, requiring six months notice in advance to prevent shortages.
4. The U.S. is reviewing India's status on the Generalized System of Preferences, which promotes economic development for developing countries. "GSP provides an important tool to help enforce the Trump Administration's key principles of free and fair trade across the globe," said Deputy U.S. Trade Representative Jeffrey Gerrish. "The president is committed to ensuring that those countries who receive GSP benefits uphold their end of the bargain by continuing to meet the eligibility criteria outlined by Congress."
This is the first public comment from the U.S. on the price cap.
5. AdvaMed has advocated for India to roll back the price controls.