Cancer chemotherapy drugs to cost more as centre approves price hike amid nationwide shortage

The central government has formally green-lit price increases for cisplatin and carboplatin – the two backbone chemotherapy drugs now in short supply across the country. The decision, seen by News18, marks the first official acknowledgement at the highest level that the shortage is real and demands emergency action.

“In principle, approval of the Hon’ble Minister (Chemicals & Fertilisers) is granted for utilising para 19 of DPCO, 2013 in respect of the aforesaid formulations," said the letter written by the Department of Pharmaceuticals to Member Secretary, National Pharmaceuticals Pricing Authority (NPPA) on June 7, accessed by News18.

In simple terms, Para 19 is an exceptional power that can be invoked when the government believes intervention is necessary to ensure the affordability or availability of medicines. It allows action beyond the normal price-control mechanism.

NPPA is the country’s price watchdog, which works under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilisers.

What the government documents actually say
The approval came after a government committee examined 82 formulations seeking higher prices. Only four drugs made the cut as urgent enough. Cisplatin and carboplatin – chemotherapy drugs – were among them.

Another letter written by NPPA to the economic adviser, Department of Pharmaceuticals, on 4 June, seen by News18, mentions that the department has received many requests for price upgradation.

“…applications received by NPPA from various pharmaceutical companies seeking upward revision of prices… for certain scheduled formulations. The applicants have cited factors such as a substantial increase in Active Pharmaceutical Ingredient (API) prices, escalation in production costs, fluctuations in foreign exchange rates, and other related factors adversely affecting the economic viability of manufacturing and marketing of these formulations on a sustainable basis."

It further explains that “applications pertaining to 82 formulations were examined by the Inter-Ministerial Committee IMC)… After detailed examination, the IMC recommended consideration of price revision in respect of four formulations: one of carboplatin Injection, one of cisplatin injection, and two of anti-tetanus immunoglobulin injection, in view of the significant increase in API costs and concerns regarding their continued availability."

The committee’s reasoning is striking. It noted: “The Committee also noted the concerns expressed by Tata Memorial Cancer Hospital regarding shortages of Carboplatin and Cisplatin injections, which are widely used as first-line chemotherapy drugs for the treatment of various cancers."

It added, “Ensuring uninterrupted availability of these critical medicines is essential from a public health perspective. In respect of the remaining 78 formulations, the IMC has sought additional information for further examination."

Here, NPPA sought permission from DoP to approve price hikes. The letter said, “In view of the emerging shortages of carboplatin injection and cisplatin injection, and the viability concerns reported for these four formulations, the matter merits consideration by the authority…' The issue was discussed during a review meeting by the Secretary, DoP on pending applications for price increases, and NPPA was directed to process the requests in accordance with the frameworks… Further, DoP advised NPPA that any specific circumstances warranting the invocation of Para 19 should be flagged to the department."

Hence, on June 7, DoP has informed NPPA that “in principle" approval of the minister has been received on using powers under Para 19.

The ministry directed the pricing authority to work out how much prices could be raised. The formula suggested: “The Standing Committee recommended a 10 per cent increase per year from the last fixation with a ceiling of 50 per cent, which could also be a guide, but the primary principle should be cost increase."

The Department of Pharmaceuticals has further asked the drug price watchdog, “NPPA is advised to examine the increase in raw material costs for these drugs while aligning the price increase and its effect to determine if a price increase is allowed. NPPA is also advised to examine in other cases where the industry has requested a price increase due to raw material cost increase on similar lines."

Why does this matter?

This government approval connects directly to the shortage crisis News18 reported last week.

Several top oncologists across India told News18 about the shortage of first-line chemotherapy drugs, which were causing treatment delays, dose reductions, interrupted chemotherapy schedules, and inventory pressure to become routine.

Oncologists told News18 that shortages are leading to the use of substitutes for platinum agents with alternative regimens – a compromise that often carries inferior efficacy and substantially higher costs for patients and institutions alike.

However, the shortage was not just a supply problem, but it was an economic problem. Companies had made a business decision: stop producing drugs that lose money.

Now, with government approval for higher prices, manufacturers have the financial breathing room to scale production back up.

 

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