India

India Caps Trade Margins on 137 Cancer Drugs to Cut Prices by Up to 70%

By Ravi Hari

India’s National Pharmaceutical Pricing Authority (NPPA) has set a maximum trade margin of 30% on 137 non‑scheduled anti‑cancer drug formulations. The change is expected to lower retail prices by as much as 70%, depending on the current price structure. The new prices will become effective on November 9, according to a statement from the Ministry of Chemicals and Fertilisers released on Saturday.

The NPPA, operating under the Department of Pharmaceuticals, applied the Trade Margin Rationalisation (TMR) mechanism under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, after a gazette notification. The aim is to make cancer medicines more affordable by limiting excessive margins throughout the distribution and retail supply chain.

The decision follows recommendations from an expert committee set up by the Directorate General of Health Services (DGHS). The panel, which includes oncologists, medical specialists, hospital experts and government officials, identified 137 anti‑cancer formulations for margin rationalisation. The list will be updated periodically, the ministry said.

This move builds on the NPPA’s 2019 pilot programme, which capped trade margins on 42 anti‑cancer medicines at 30% and led to maximum retail price reductions of up to 90% across 526 brands. The latest order extends the framework to a much larger basket of cancer medicines.

Under the new directive, pharmaceutical companies must publish revised price lists on their official websites and distribute them widely to retailers and hospitals. Retailers and hospitals must charge the revised prices from November 9 and display the updated rates in their pharmacies. Hospitals, which procure a large share of oncology medicines, must also prominently display the revised prices on their websites and are directly responsible for ensuring the new rates are implemented.

Consumers can view the revised prices on the NPPA website and the government’s Pharma Sahi Daam mobile application. State drug controllers have been instructed to enforce compliance among manufacturers, distributors, retailers, hospitals and other medical institutions.

The NPPA said the measure is intended to curb excessive margins in the distribution and retail channels without affecting legitimate manufacturing revenues or causing artificial shortages. Pharmaceutical companies have been directed to maintain existing production and supply levels for the notified formulations to ensure uninterrupted access to essential medicines. The ministry said the move is aimed at improving affordability while safeguarding the availability of critical cancer treatments.