NEW DELHI, November 9 (Aalimi Nation) – Revised, lower prices for 137 anti-cancer medicines came into effect on Monday after the National Pharmaceutical Pricing Authority (NPPA) capped trade margins on the drugs, a step the government says will make cancer treatment more affordable.
Under the decision, the trade margin on each of the 137 non-scheduled anti-cancer drugs is limited to 30 per cent of the maximum retail price (MRP).
The NPPA said the measure follows the recommendations of an expert committee set up by the Directorate General of Health Services under the Union Health Ministry. The authority described the move as trade margin rationalisation for anti-cancer medicines, aimed at improving the affordability and accessibility of essential cancer drugs.
Of the 137 drugs, 10 to 15 are not yet sold in India; the cap will apply when they launch. Manufacturers have been asked to recalculate MRPs by allowing a trade margin of up to 30 per cent, plus applicable GST. Products already priced below the new ceiling keep their existing MRP. Retailers, dealers, hospitals and medical institutions are required to display the revised price lists prominently.
According to official figures released on Monday, 76 pharmaceutical companies had so far reported revised MRPs for 1,225 anti-cancer formulations covering 121 drugs. Of these, 1,031 formulations saw their MRP reduced. Official data show that 600 brands reported cuts of more than 50 per cent, and the largest single reduction was 96.45 per cent.
The authority estimates that consumers will save about Rs 3,502.31 crore a year. An earlier estimate cited by officials when the order was notified in October had put the annual saving at about Rs 2,500 crore.
The NPPA had said in its notification that excessive mark-ups between the price at which manufacturers sell a drug and the MRP printed on the pack were leading to what it called catastrophic out-of-pocket costs for cancer patients and their families.
The measure expands an earlier effort. In 2019, the government capped trade margins on 42 anti-cancer drugs at 30 per cent, which officials said lowered the MRPs of 526 brands by up to 90 per cent and was estimated to save consumers about Rs 984 crore a year.
The latest cap was notified under the Drugs (Prices Control) Order, 2013. Manufacturers were told to submit their revised price details to the NPPA and the relevant State Drug Controller within seven days of the notification, even where prices do not change. Companies that fail to comply can be directed to deposit overcharged amounts along with interest under the Essential Commodities Act, 1955.
Patients and families can check the applicable ceiling and revised prices of medicines on the NPPA's website and on the Pharma Sahi Daam mobile application, officials said.
The NPPA has said the list of revised prices will be updated on a continuing basis as more companies report their new MRPs.
