The Department of Pharmaceuticals (DoP) secretary will hold a meeting on October 25 to fix trade margins, imposing a cap on the distributor and retailer margins which could bring relief to the medical device industry that’s been hit hard by price caps this year. The DoP has also asked medical device associations, healthcare industry bodies and relevant regulatory agencies to help it categorize the devices for the same. National Pharmaceutical Pricing Authority (NPPA) will present the data it has collected from the industry on ex-factory prices or “price to trade” for 23 medical devices notified as “drugs” and the pharmaceutical industry will provide data to decide on the various segments. Fixing the trade margins would restrict how much a product’s price can be raised from the import or manufacturing cost. Trade margin rationalization is being considered as a better option to bring down the prices of the medical devices as it would prevent unintended consequences like distributors becoming disinterested in providing these technologies to tier-II and III towns as well as prevent major trading partner countries from considering retaliatory measures against Indian products.