India Cuts Reimbursement Rates for Stents

Stent manufacturers with a presence in India are facing some bad news. In February, India decided to cut reimbursement rates for drug-eluting stents.Many medtech manufacturers like Boston Scientific, Abbott and Medtronic view the new policies as a significant hurdle for future growth. According to the Business-Standard, an unnamed source states that international medical device companies received no input or consultation on the impact of the new policies.India's demographics are a challenge for many Western companies. With a per-capita income of $1,527 in 2011, many patients lack the financial resources to pursue expensive medical treatments. In response, India has made several attempts to improve healthcare access for its citizens. Pharmaceutical companies have battled with Indian regulators against the sale of generic drugs for low prices. Now, the medical device industry also faces lower per-patient revenue for drug-eluting stents.FDA-approved drug-eluting stents are capped at a maximum price of $461. Before Indian regulators slashed reimbursement, the price of drug-eluting stents was $1,200. Devices with a CE Mark from the European Union sold for a slightly lower pre-regulation price of $923.27. These devices are now capped at $461 too. Bare metal coronary stents will only be reimbursed up to $221.While improving access to healthcare is a noble goal for India's leaders, the country may pay a price. Like the Tata Nano vehicle, India is very effective at producing low-cost goods that can fit the budget of its citizens. However, quality may suffer. The Tata Nano, for example, sells for a base price of $3,000. However, minimal safety features and a value-oriented design make it less safe than vehicles that grace the roads of Western nations. Attempts to bring the Tata Nano to the U.S. for a low price were stymied by costs associated with bringing the vehicle to U.S. safety standards.For India, maintaining access to low-cost CE Mark and FDA-approved stents could become challenging.More Medtech News from IndiaOmar Ishrak: Medtronic to Expand Reach into Emerging MarketsNew Needle-Free Anemia Testing Kit Developed in IndiaRegulators in India Release New Guidance for Medical Device Registration and Licensing