Government Caps Margins on Non-Scheduled Cancer Drugs; Patients Expected to Save ₹2,500 Crore Annually
The Central Government has approved limiting the sales margin of non-scheduled anti-cancer drugs to 30% of the Maximum Retail Price (MRP), which is expected to significantly reduce medicine costs.
The Central Government has taken a significant step to reduce the cost of treatment for cancer patients. The government has approved the capping of margins taken during the supply and sale of non-scheduled anti-cancer drugs. This margin will now be limited to a maximum of 30% of the Maximum Retail Price (MRP).
This decision is likely to lead to a reduction in drug prices by up to 70%, which is expected to save cancer patients approximately ₹2,500 crore annually. This will substantially lower the out-of-pocket expenditure incurred by patients. While strict rules regarding maximum prices were already in place for essential cancer drugs included in the scheduled list, this protective scope has now been extended to drugs that are outside the list (non-scheduled).
As part of the process, an expert committee under the Directorate General of Health Services (DGHS) will finalize the list of drugs to be covered under this scope. Following this, the National Pharmaceutical Pricing Authority (NPPA) will take the final decision and issue the relevant notification.
This move comes amid rising cancer cases in India, where approximately 60 people per one lakh population are affected by the disease. According to market data analysis by the NPPA, non-scheduled anti-cancer drugs have seen an average price increase of 170%, which in some cases has reached 700% or more. Officials and civil society from states such as Maharashtra, Rajasthan, and Karnataka had also expressed concern over the exorbitant prices of medicines and the wide gap between the procurement price and the MRP.
The government took this decision based on the positive outcomes of its previous intervention in 2019. In February 2019, the NPPA had limited trade margins on 42 selected non-scheduled anti-cancer drugs under the 'Drugs (Prices Control) Order, 2013', which resulted in a reduction of up to 91% in MRP and an annual saving of ₹984 crore across 526 brands.
This initiative will include all non-scheduled anti-cancer drugs, whether branded or generic, domestically manufactured or imported, and patented or non-patented. The government has also clarified that manufacturers must maintain their current production levels to ensure the continuous availability of these life-saving medicines.
