A group of global medical-technology companies plans to tell Indian officials next month that any further price control measures would risk future investments and make them less likely to introduce new products in the country, according to an industry source familiar with the matter.
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The lobbying effort by Abbott Laboratories, Boston Scientific, Johnson & Johnson and others comes after the government of Prime Minister Narendra Modi in February set a price cap for stents — small wire-mesh structures used to treat blocked arteries — slashing prices that patients pay for some devices by about 75%.
That has sparked a growing showdown between the companies and the government in India, where the “med-tech” sector is worth $5 billion. Abbott and Medtronic filed for withdrawal of some of their stents, but the Centre rejected their request, saying it contravened drug laws.
Mr. Modi has taken a more aggressive stance against multinational healthcare companies, announcing price curbs on drugs used to treat critical ailments such as cancer, HIV/AIDS and diabetes. At a recent event, the prime minister said patient interests were more important than “unhappy” companies.
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The firms, meanwhile, worry price controls could extend to other devices such as implants or valves, making it unviable for them to sell next-generation products in India, industry sources said.
‘Lot of nervousness’
Executives from Abbott, Medtronic and Boston Scientific — which all sell coronary stents in India — along with Johnson & Johnson and others, plan to approach the health and trade ministries in May to convey that “price control is not the way forward”, according to an India executive at a multinational company aware of the plans.
“There is a lot of nervousness,” the executive said. J&J is worried about potential price curbs on its imported knee, joint or hip implants