New Delhi: The central government has approved a 30% cap on margins charged on the supply and sale of non-scheduled anti-cancer medicines, a move it expects to reduce prices by up to 70% and help cancer patients save ₹2,500 crore annually.
In a press release on Thursday, the Department of Pharmaceuticals said the measure would extend price protection to non-scheduled cancer medicines, which are currently outside the list of drugs subject to government-fixed ceiling prices.
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 approximately 170%”, the department said, adding that in some cases, the mark-up was “700% or more”.
“Prices also vary significantly depending on whether the medicine is bought from a retail pharmacy, a hospital pharmacy or an online pharmacy,” the department said.
An expert committee under the Directorate General of Health Services will now finalise the list of medicines to be covered. The NPPA will then take a decision and issue the notification implementing the measure.
The government said the intervention was aimed at reducing the financial burden of cancer treatment, as patients and their families often have to bear substantial out-of-pocket costs.
{{/usCountry}}The government said the intervention was aimed at reducing the financial burden of cancer treatment, as patients and their families often have to bear substantial out-of-pocket costs.
{{/usCountry}}The move builds on a government intervention in February 2019, 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%, with reported annual savings of ₹984 crore across 526 brands, according to the department.
“Building on that experience, and addressing the pricing problems identified in the supply chain, the Government has now approved the wider cap,” it said.
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.
The government has also sought to ensure that the price intervention does not lead to shortages. Manufacturers of non-scheduled anti-cancer drugs will be required to “maintain their current production levels”, the department said.
The government said the move would “curb excessive profiteering, address unfair pricing practices in the market and help ensure fairer prices for patients.”
The department said cancer incidence is rising in India, with approximately 60 people per lakh population affected by the disease. It said the high margins on expensive cancer medicines substantially increase patients’ treatment costs.