The Government has approved a cap on trade margins charged in the supply and sale of non-scheduled anti-cancer drugs at 30 per cent of the Maximum Retail Price (MRP). The measure is expected to reduce medicine prices by up to 70 per cent and help cancer patients save ₹2,500 crore annually.
Essential cancer medicines included in the scheduled list are already subject to government-set ceiling prices. The new decision extends price protection to non-scheduled cancer medicines, which fall outside the list, by limiting the margins added before the medicines reach patients.
An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines to be covered. The National Pharmaceutical Pricing Authority (NPPA) will then take a decision and issue the notification.
Cancer incidence in India is rising, with approximately 60 people per one lakh population affected by the disease. Treatment places a financial burden on patients and their families, who often have to pay substantial amounts from their own pockets.
NPPA’s analysis of market data found that non-scheduled anti-cancer medicines carry an average price mark-up of approximately 170 per cent, reaching 700 per cent or more in some cases. The price increases as medicines move through the supply chain before reaching patients.
Prices also vary depending on whether medicines are purchased from a retail pharmacy, a hospital pharmacy or an online pharmacy.
State authorities, including those in Maharashtra, Rajasthan and Karnataka, along with patients and civil society, have raised concerns about medicine prices. These concerns have also been voiced on public platforms, particularly regarding the gap between the price at which medicines are purchased for sale and the MRP charged to consumers.
The Government said the margin cap will curb excessive profiteering, address unfair pricing practices in the market and help ensure fairer prices for patients.
In February 2019, on the Government’s direction, NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013.
The decision reduced MRPs by up to 91 per cent, with reported annual savings of ₹984 crore across 526 brands. It reduced the financial burden on cancer patients and improved their ease of living.
Building on that experience and addressing pricing issues identified in the supply chain, the Government has now approved the wider cap. The expected annual savings of ₹2,500 crore are intended to provide further relief to patients undergoing cancer treatment.
To ensure the continued availability of these medicines, manufacturers of non-scheduled anti-cancer drugs will be required to maintain their current production levels.
The intervention will cover non-scheduled anti-cancer medicines across categories, including branded and generic, domestically produced and imported, and patented and non-patented medicines. The measure aims to enable patients to benefit from lower prices while ensuring the continued availability of the medicines they need.
Commenting on the Government’s Trade Margin Rationalisation (TMR) announcement, Mr Anil Matai, Director General, OPPI, said:
“OPPI welcomes the Government’s Trade Margin Rationalisation (TMR) initiative aimed at improving the affordability and accessibility of cancer medicines for patients across India. We support measures that help reduce the treatment burden on patients while ensuring continued access to quality therapies. We believe that improving patient outcomes requires sustained collaboration among government, industry and other stakeholders. As the implementation progresses, it will be important to maintain a balanced and predictable environment that supports patient access, healthcare system sustainability and the continued introduction of innovative treatments. OPPI remains committed to working with all stakeholders towards the shared goal of advancing patient-centric healthcare in India.”