India

India Caps Margins on Non‑Scheduled Cancer Drugs at 30%, Aiming for ₹2,500 Crore Annual Savings

By HT Correspondent

The central government has approved a 30 % cap on the trade margins charged on the supply and sale of non‑scheduled anti‑cancer medicines. The Department of Pharmaceuticals said the measure could reduce prices by up to 70 % and help patients save ₹2,500 crore each year. Under the new mechanism, margins on these medicines will be limited to 30 % of their maximum retail price (MRP). The decision follows an analysis by the National Pharmaceutical Pricing Authority (NPPA), which found that non‑scheduled anti‑cancer medicines carry an average price mark‑up of about 170 %, with some cases exceeding 700 %. Prices also vary depending on whether the medicine is bought from a retail pharmacy, a hospital pharmacy or an online pharmacy. An expert committee under the Directorate General of Health Services will now finalise the list of medicines to be covered. The NPPA will then issue a notification implementing the measure. The government said the intervention is aimed at reducing the financial burden of cancer treatment, as patients and families often bear substantial out‑of‑pocket costs. The move builds on a February 2019 intervention when the NPPA capped trade margins at 30 % for 42 selected non‑scheduled anti‑cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013. That decision reduced MRPs by up to 91 % and yielded reported annual savings of ₹984 crore across 526 brands. The latest measure will cover non‑scheduled anti‑cancer medicines across categories, including branded and generic drugs, domestically produced and imported medicines, and patented and non‑patented medicines. To prevent shortages, manufacturers of non‑scheduled anti‑cancer drugs will be required to maintain their current production levels. The department said the move will curb excessive profiteering, address unfair pricing practices and help ensure fairer prices for patients. It also noted that cancer incidence is rising in India, with about 60 people per lakh population affected, and that high margins on expensive cancer medicines substantially increase treatment costs.