BEIJING—The National Healthcare Security Administration (NHSA) has issued an open letter expressing concerns over the pricing of Shanghai MicroPort Endovascular MedTech Co., Ltd’s (SHA: 688016) Castor aortic stent graft and delivery system. The NHSA’s inquiry comes after reports from the public highlighted the artificially high prices of the product.
According to the letter, the factory price for the Castor bracket, which is 200mm in length, is approximately RMB 50,000 (USD 7,000), yet the price that agents supply to medical institutions exceeds RMB 120,000 (USD 16,800). This discrepancy has raised questions about the pricing strategy and potential markups in the distribution chain.
In response, Endovascular MedTech has issued a statement to the stock exchange, indicating that the company has been in communication with the NHSA and local healthcare security bureaus throughout the first half of 2023. The company has addressed the letter by referencing the pricing systems of similar products by other manufacturers and has committed to lowering the prices. Endovascular MedTech has also expressed its willingness to further reduce the price within the framework of volume-based procurement rules and to proactively adjust prices under the guidance of the NHSA.
The Castor stent graft system, designed for the treatment of thoracic aortic dissection involving arch lesions, is a groundbreaking medical device. It is the world’s first and only domestically approved covered stent that facilitates endovascular repair of both the aorta and its arch branches through minimally invasive treatment, offering a significant advancement in the field of vascular medicine.- Flcube.com
