Medtronic (NYSE:MDT) and Abbott (NYSE:ABT) are withdrawing select high-value stents from the Indian market following cost caps imposed by the Indian National Pharmaceutical Pricing Authority, according to a Financial Express report.
Medtronic has filed to remove its Resolute Onyx stent from the market, while Abbott filed to remove both its Absorb and Alpine stents.
Last year, Indian NPPA imposed price restrictions which set limits on the costs of metal, drug eluting and bioresorbable stents. The regulatory body also set limits on trade margins, discounts and other promotions used on higher-end products.
The move led to rumors that larger players in medtech would pull their high-cost stents from the market, with Abbott denying claims that it would withdraw from the region in February.
Both Medtronic and Abbott have now confirmed that they have submitted applications to withdraw their products, respectively.
“We have submitted an application for withdrawal of Resolute Onyx under the provisions of the Drug Price Control Order,” Medtronic said today, according to the Financial Express. The firm will continue to supply the stents until the withdrawal is confirmed.
Abbott claimed the move would make its high-cost stents unsustainable in the region, and announced it had submitted its application for withdrawal last week, according to the report.
“Following the NPPA (National Pharmaceutical Pricing Authority) price ceiling decision, we have examined and re-examined whether there is a sustainable way to make available in India two of Abbott’s latest stent technologies, the Alpine drug eluting stent and the Absorb dissolving stent, considering their higher manufacturing costs and other associated costs. We have determined it is not sustainable, and we have applied to the NPPA to withdraw these two stents,” Abbott said, according to The Hindu Business Line.
Medtronic and Abbott may not be alone in their exit, as reports also claim that Boston Scientific (NYSE:BSX) is considering withdrawing it’s higher-end offerings from the region following the price caps.
“Since the price control order in February 2017, Boston Scientific has been in a constant dialogue with the government bodies under various legal provisions. We have sought the possible reliefs available under the law and also submitted details on the superior clinical attributes of our stents Synergy and Promus Premier,” a Boston Scientific India spokesperson said in a statement, according to the Financial Express.