Centre Caps Cancer Drug Margins at 30%
The Centre has approved a 30% cap on trade margins for non-scheduled anti-cancer medicines, a move expected to reduce the prices of several cancer drugs by as much as 70% and generate annual savings of around ₹2,500 crore for patients.
Cancer Drug Trade Margins Capped at 30%
The new framework will apply to non-scheduled anti-cancer medicines that are currently outside the list of drugs subject to government-fixed ceiling prices.
The cap will cover branded and generic medicines, domestic and imported products, and patented as well as non-patented cancer drugs.
An expert committee under the Directorate General of Health Services will finalise the list of medicines to be included before the pricing regulator issues the formal notification.
Government Targets Sharp Reduction in Drug Prices
The decision follows findings that some non-scheduled cancer medicines carry very high mark-ups between supply-chain prices and their final maximum retail prices.
The government estimates that the expanded trade-margin cap could bring down prices by up to 70% in certain cases and help patients save approximately ₹2,500 crore each year.
The move builds on a similar 2019 intervention covering 42 non-scheduled anti-cancer medicines, which resulted in substantial price reductions across hundreds of brands.
Manufacturers Asked to Maintain Supply
The government has also sought safeguards against shortages after the new pricing mechanism comes into effect.
Manufacturers of covered anti-cancer medicines will be expected to maintain existing production levels so that lower margins do not disrupt availability.
The measure comes amid wider scrutiny of cancer-drug pricing and the financial burden faced by patients undergoing long-term treatment.
