The Union government has approved a 30% cap on trade margins for non‑scheduled anti‑cancer medicines, a move that could cut prices by up to 70% and save cancer patients about ₹2,500 crore each year.
The decision, announced by the Press Information Bureau on Thursday, expands price controls to cancer drugs that are not on the existing scheduled list of medicines already subject to government‑mandated ceiling prices. Under the new rule, margins in the supply and sale of these non‑scheduled anti‑cancer medicines will be limited to 30% of the maximum retail price.
An expert committee under the Directorate General of Health Services will finalize the list of medicines to be covered, after which the National Pharmaceutical Pricing Authority will issue a notification. NPPA’s analysis of market data revealed that non‑scheduled anti‑cancer medicines had an average price mark‑up of around 170%, with some reaching 700% or more.
Prices varied widely depending on whether the medicines were purchased from retail pharmacies, hospital pharmacies or online platforms. The high margins on expensive cancer drugs have added substantially to patients’ treatment costs, and the new cap aims to curb excessive pricing and reduce out‑of‑pocket expenditure.
The move builds on an earlier intervention in February 2019, when the government directed NPPA to cap trade margins on 42 selected non‑scheduled anti‑cancer medicines under Paragraph 19 of the Drugs (Prices Control) Order, 2013. That measure lowered maximum retail prices by up to 91% and generated reported annual savings of ₹984 crore across 526 brands. The latest intervention will cover all non‑scheduled anti‑cancer medicines, including branded and generic, domestically manufactured and imported, patented and non‑patented drugs. To prevent supply disruptions, manufacturers will be required to maintain existing production levels.
The government cited the rising cancer burden and the high cost of treatment as reasons for extending price protection. It said the new measure is expected to provide further financial relief to patients and their families.
