Chinese company urged to rectify medical device overcharging

BEIJING, Aug. 21 (Xinhua) -- China's National Healthcare Security Administration (NHSA) has launched an open inquiry into an overpriced product of the Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd.

It is the first open inquiry conducted by the NHSA involving a medical device enterprise, which aims to regulate operator's pricing activity, tackle improper sales of medical products through overcharging, and safeguard the well-being of patients and the country's healthcare funds, according to the NHSA.

This move follows a preliminary talk with the Shanghai-based company concerning their Castor branched aortic stent graft system, whose price drastically increased from about 50,000 yuan (about 7,012 U.S. dollars) of manufacturer's price to 120,000 yuan at the sales agent's side.

However, the price adjustment plan proposed by the company following the talk still failed to reduce the price gap to a reasonable range.

The NHSA has required the company to submit relevant explanatory materials to it before Aug. 26, and to publicize all relevant content while accepting societal oversight and a peer review.

The NHSA has vowed further measures in accordance with its price risk management mechanism and, if necessary, its credit rating mechanism, should the company not meet its requirements.

On Wednesday, the company released a statement concerning the matter, saying it is willing to further adjust the price under the guidance of the NHSA.

According to the company's website, their product is the world's first covered stent to achieve endovascular repair of the aorta and supra arch branch artery through minimally invasive treatment.