October 8: Government has approved a cap on the margins charged in the supply and sale of non-scheduled anti-cancer drugs, it announced via press release.
A few days ago, in September, the Supreme Court Justices Vikram Nath and Sandeep Mehta heard a PIL seeking mandatory generic prescriptions and price controls on non-scheduled medicines and medical devices. MedBound Times covered the court’s hearing from last month.
Referring to the cancer medicines, Justice Mehta highlighted that there are essential medicines for cancer for which MRP is Rs 27,000 and PTR (Price To Retailer) is Rs 2,700. He called this ‘absolute rampage and carnage’ and ‘broad daylight dacoity’ with the patients.
Trade margin refers to the difference between the price at which a distributor purchases a medicine from a pharmaceutical company and the Maximum Retail Price (MRP) at which it is sold to patients.
According to The Indian Express, a source from the Department of Pharmaceuticals has disclosed that the proposed decision is expected to take effect in the next 10 days and is expected to reduce the prices of certain medicines by as much as 70 per cent.
According to the press release, there has been an increase in cancer incidences with approximately 60 people per one lakh population affected by cancer.
NPPA’s analysis of market data discovered that non-scheduled anti-cancer medicines are sold to patients at a price escalation of approximately 170%, with some cases reporting a markup as high as 700%. Eventually, the price tends to rise subsequently as the medicine moves through the supply chain.
The press release also highlighted that prices of such medicines also vary significantly depending on whether the medicine is bought from a retail pharmacy, a hospital pharmacy or an online pharmacy.
Sources said that an expert committee under the Directorate General of Health Services (DGHS) will finalise the list of 110 non-scheduled cancer drugs medicines to be covered. The National Pharmaceutical Pricing Authority (NPPA) will then review the list and issue notification once a decision is finalized.
Under the Drugs (Prices Control) Order 2013, the government controls prices of scheduled drugs, which make up the National List of Essential Medicines.
The intervention is supposed to cover all non-scheduled anti-cancer medicines across branded and generic categories, doesn’t matter whether they are domestically produced or imported. It will also include patented and non-patented cancer medications. This will help patients significantly benefit from lower prices while ensuring continued availability of the medicines they need.
Some of the key criterias that will guide the selection of medicines for inclusion in the proposed list are:
The committee will prioritize expensive medicines when identifying drugs for trade margin regulation.
Only medicines approved for cancer treatment in India and commonly used in clinical practice will be considered.
This decision built up on a past order passed in February 2019, where the government reported annual savings of ₹984 crore across 526 brands.
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% and significantly reduced the financial burden on cancer patients and improved their ease of living.
Building on that experience and addressing the pricing problems identified in the supply chain being raised by state authorities, including those in Maharashtra, Rajasthan and Karnataka, along with patients and civil society, the Government has now approved the wider cap.
The government expects annual savings of ₹2,500 crore as the order will reduce medicine prices by up to 70%. The decision will significantly reduce the amount patients pay from their own pockets, and might end up proving to be a boon for cancer patients.
The co-convenor of Working Group on Access to Medicines and Treatments, KM Gopakumar mentioned that it is unlikely to make many of the patented cancer drugs affordable.
Despite a capping order in place in 2019, prices of cancer medicines significantly increased. Citing an example of ribociclib, which is a well-known cancer drug, he mentioned that its price rose from Rs 58,000 in 2022 to Rs 78,000 in 2025 despite margin capping. Patented drugs face no competition in the market, hence there is no pressure on manufacturers to reduce their prices.
He further pressed on the need for public health safeguards in the Patents Act, use of government licence under section 100 and compulsory licence to enable generic production.
To ensure access to these life-saving medicines, manufacturers of non-scheduled anti-cancer drugs will be required to maintain their current production levels.
(Rh/MF/MSM)
