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New Delhi: A wider cap on trade margins for non-scheduled cancer medicines has been approved by the government, with the Department of Pharmaceuticals projecting annual savings of ₹2,500 crore for patients and price reductions of up to 70%. The margins charged in their supply and sale are to be limited to 30% of the maximum retail price (MRP).
The medicines to be covered will first be identified by an expert committee under the Directorate General of Health Services (DGHS). The National Pharmaceutical Pricing Authority (NPPA) will then take a decision and issue the notification, the department said.
Price protection beyond the scheduled list
Essential cancer medicines on the scheduled list already have government-set ceiling prices. The new decision extends protection to non-scheduled anti-cancer medicines by limiting the margins added as products move through the supply chain before reaching patients.
The proposed intervention covers branded and generic medicines, products manufactured in India and those imported, and both patented and non-patented drugs. Manufacturers will be required to maintain their current production levels to support continued availability.
Market analysis found mark-ups of 170% on average
According to the department, NPPA’s market analysis found an average price mark-up of approximately 170% on non-scheduled anti-cancer medicines, with some cases reaching 700% or more. Prices also differ substantially between retail, hospital and online pharmacies.
Authorities in Karnataka, Maharashtra and Rajasthan, as well as patients and civil society groups, have raised concerns about excessive prices and the gap between the purchase price for sellers and the MRP charged to consumers.
The department cited rising cancer incidence, saying approximately 60 people per lakh population are affected. It said treatment often imposes a heavy out-of-pocket burden on patients and their families, particularly when costly medicines carry high supply-chain margins.
Wider cap builds on the 2019 intervention
In February 2019, NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013. The department said that decision lowered MRPs by up to 91% and delivered reported annual savings of ₹984 crore across 526 brands.
The ₹2,500-crore estimate relates to the newly approved wider intervention. The stated price reduction of up to 70% is an expected outcome; the coverage list and NPPA notification are the next steps described in the announcement.
The department said the cap aims to curb excessive profiteering and unfair pricing while keeping the medicines available to patients.
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