NPPA warns stent makers, hospitals of legal action

Regulator NPPA today warned hospitals, stent manufacturers and importers of legal action in case they are found spreading "misinformation" about shortage of the medical device in the wake of price cap.
On creating an artificial shortage of stents, the National Pharmaceutical Pricing Authority (NPPA) said "probability of an understanding between companies, the distributors and hospitals under such a situation cannot be ruled out" and warned of a legal action for misinformation in this regard.
"Any hospital having a situation where stocks of any brand of any company have been exhausted and require to be replenished, is expected to have issued a written demand/communication to the company.

"Without having done so, talking of shortage of stents on record is misinformation, which needs to be stopped in public interest," the regulator said.
While asking all hospitals to raise the demand for stents, the NPPA said such communications should be made available to its top officials.
It further said: "If a stent company finds that any hospital or distributor has refused to take supply of stents of certain brands which it used to take during the pre-price capping period, such companies are advised to write to concerned distributor/hospital."

Such hospitals will face inspection of its records by NPPA/state drug controllers.

The regulator added: "Such statement of the companies about hospitals without having issued such communication is misinformation."
To "dispel any fear/doubt creating in the minds of people, the NPPA asked all the manufacturers, importers to follow its instructions and issue them to their distributors and hospitals.
"In case of non-compliance of these instructions, the NPPA may be constrained to invoke the provisions of legal prosecution under the Essential Commodities Act, 1955, apart from other provisions under DPCO 2013," it said.