Anti-cancer drug prices may fall up to 70 per cent

New Delhi, Oct 9: Prices of several anti-cancer medicines could fall by as much as 70 per cent as the Central government moves to cap trade margins on non-scheduled cancer drugs at 30 per cent of their Maximum Retail Price (MRP), a measure expected to provide substantial financial relief to patients undergoing cancer treatment.
According to a report, the proposed intervention is aimed at curbing excessive trade mark-ups on expensive cancer medicines and reducing the out-of-pocket expenditure borne by patients and their families.
The government estimates that the proposed pricing intervention could result in annual savings of approximately Rs 2,500 crore for patients, with some high-cost medicines, particularly patented drugs, likely to witness substantial price reductions.
Under the proposal, trade margins on all non-scheduled anti-cancer medicines would be restricted to 30 per cent of their MRP, covering a broad range of pharmaceutical products irrespective of their manufacturing origin or patent status.
The proposed cap would apply to branded and generic medicines, domestically manufactured and imported drugs, as well as patented and non-patented anti-cancer formulations.
Official sources said the intervention was intended to address excessive margins in the pharmaceutical supply chain while ensuring that essential cancer medicines remained available to patients.
“The move addresses excessive trade mark-ups and aims to improve affordability while ensuring continued availability of these life-saving medicines. The expected impact will be up to 70 per cent reduction in MRP and estimated annual savings of Rs 2,500 crore,” official sources said.
The proposed measure assumes significance given the high cost of cancer treatment, particularly for patients requiring prolonged medication, specialised therapies and expensive patented drugs.
According to the report, the government is examining the pricing structure of non-scheduled anti-cancer medicines, which are not subject to the same direct price controls applicable to scheduled formulations.
By restricting trade margins, the Centre aims to reduce the difference between the price at which medicines enter the distribution chain and the final price paid by patients.
The latest proposal builds on an earlier government intervention in 2019, when trade margin rationalisation for anti-cancer medicines reportedly generated annual savings of approximately Rs 984 crore across 526 brands.
Official sources said the proposed expansion reflects the government’s efforts to make healthcare more affordable and accessible, particularly for patients requiring costly and long-term treatment.
The report said the government was in the final stages of considering the proposal, although a formal decision had yet to be announced.
A committee comprising oncologists and other stakeholders has been constituted to examine the proposed pricing intervention and is expected to take a final decision soon.
The involvement of medical specialists is intended to ensure that the pricing mechanism improves affordability without affecting the availability of essential cancer medicines.
Earlier, the Department of Pharmaceuticals had asked the National Pharmaceutical Pricing Authority (NPPA) to analyse the trade margins of certain medicines as part of efforts to assess pricing practices in the pharmaceutical sector.
The findings are expected to inform the government’s decision on the proposed ceiling and its implementation.
Official sources also indicated that the government could consider extending similar trade margin rationalisation measures to additional cancer medicines and other categories of drugs in the future.
If approved, the proposal could bring down the retail prices of several expensive anti-cancer medicines, although the extent of reduction would vary depending on the existing trade margins of individual drugs.
The government has yet to announce a final decision or implementation timeline for the proposed measure. (KNS)