The government has approved a 30 per cent cap on trade margins for non-scheduled anti-cancer medicines, a move aimed at making cancer treatment more affordable
and easing the financial burden on patients. The decision is expected to bring down medicine prices by up to 70 per cent and generate annual savings of around Rs 2,500 crore for patients. The measure expands price regulation to cancer medicines that are not covered under the government's existing list of scheduled drugs, which are already subject to prescribed price ceilings. By restricting the margins added across the supply chain, the government intends to address steep mark-ups and bring greater transparency to medicine pricing. Under the approved measure, trade margins on non-scheduled anti-cancer medicines will be restricted to 30 per cent of their Maximum Retail Price (MRP). These are medicines that do not fall under the scheduled list of drugs covered by existing government-mandated ceiling prices. The Directorate General of Health Services (DGHS) will oversee an expert committee tasked with finalising the list of medicines covered by the new restrictions. Following this exercise, the National Pharmaceutical Pricing Authority (NPPA) will take the necessary decision and issue a formal notification. Cancer Drug Prices In India: Why Is The Government Intervening? Cancer treatment continues to be a major financial challenge for patients and their families in India. The country records approximately 60 cancer cases per lakh population, and the cost of medicines can add substantially to the overall expense of treatment. An analysis of market data by the NPPA found that non-scheduled anti-cancer medicines had an average price mark-up of around 170 per cent. In certain cases, the mark-up reached 700 per cent or more, highlighting the extent to which prices can rise as medicines move through the supply chain. The cost of the same medicine can also differ considerably depending on whether it is purchased through a retail pharmacy, a hospital pharmacy or an online platform. State authorities, including those in Maharashtra, Rajasthan and Karnataka, have raised concerns about high medicine prices. Patients and civil society groups have also highlighted the substantial difference between the prices at which medicines are procured for sale and the MRPs ultimately charged to consumers. The government expects the new restrictions to tackle these pricing disparities and reduce out-of-pocket expenditure for people undergoing cancer treatment. Government's Earlier Move Cut Cancer Drug Prices By Up To 91 per cent The latest decision builds on an earlier intervention introduced in February 2019. At the government's direction, the NPPA had imposed trade margin caps on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013. That move brought down MRPs by as much as 91 per cent. It also resulted in reported annual savings of Rs 984 crore across 526 brands, providing substantial relief to cancer patients. The government is now extending the approach to address wider pricing concerns across the non-scheduled anti-cancer medicine segment. The projected annual savings of Rs 2,500 crore would represent a significant increase in the financial relief expected from price regulation. Which Cancer Medicines Will Come Under The New Price Cap? The proposed measure will cover a broad range of non-scheduled anti-cancer medicines, irrespective of their brand or manufacturing origin. Both branded and generic drugs will be included, along with medicines produced domestically or imported from overseas. The coverage will also extend to patented and non-patented medicines, ensuring that the restrictions are not limited to a particular category of cancer treatment drugs. To prevent lower prices from affecting the availability of essential medicines, manufacturers will be required to maintain their existing production levels. This condition is intended to ensure that patients continue to have access to the medicines they need even as trade margins are brought under control. The expert committee's work on identifying the medicines covered by the decision, followed by the NPPA's notification, will determine the implementation of the measure. (With Agency Inputs)
