Cancer drug prices may drop by up to 70% from November 9 — What to know

India’s drug price regulator, the National Pharmaceutical Pricing Authority (NPPA), has capped trade margins at 30% for 137 non-scheduled cancer drug forms, a move expected to reduce their retail prices by up to 70%, depending on the existing pricing structure.

The revised prices will come into effect from November 9, according to a statement issued by the Ministry of Chemicals and Fertilizers on Saturday.

The NPPA, which operates under the Ministry of Medicines, has introduced the Trade Margin Rationalization (TMR) mechanism under Section 19 of the Drug Price Control Ordinance (DPCO), 2013, after issuing a gazette notification.

The aim of the intervention is to make cancer drugs more affordable by reducing excessive margins throughout the distribution and retail supply chain.

NPPA expands framework for price control of cancer drugs

The latest move follows the recommendations of an expert committee set up under the Directorate General of Health Services (DGHS). The committee is made up of oncologists, medical specialists, hospital experts from around the country and government officials.

The panel recommended 137 anti-cancer products for rationalization of trade margin. The list will be updated regularly, the ministry said.

The initiative follows on from the 2019 NPPA pilot program where trade margins for 42 anti-cancer drugs were capped at 30%. This intervention resulted in maximum retail price (MRP) reduction of up to 90% for 526 brands.

The latest order expands the framework to a significantly larger basket of cancer drugs.

Drug manufacturers, hospitals must implement revised prices

Under the new directive, pharmaceutical companies must publish revised price lists on their official websites and disseminate them to retailers and hospitals.

Retailers and hospitals will have to charge the adjusted prices and display the updated rates in their pharmacies from November 9.

Hospitals that directly procure a substantial part of oncology drugs must also display revised prices visibly on their websites. They will be directly responsible for ensuring the new rates are implemented, the ministry said.

Consumers can check the revised prices through the NPPA website and the government mobile app Pharma Sahi Daam.

State drug inspectors have also been ordered to ensure compliance among manufacturers, distributors, retailers, hospitals and other healthcare facilities.

The regulator tries to prevent supply interruptions

The NPPA said the measure aims to curb excessive margins in distribution and retail channels without affecting legitimate manufacturing revenues or creating artificial shortages.

Pharmaceutical companies have been directed to maintain existing production and supply levels for notified formulations to ensure uninterrupted access to essential medicines.

The ministry said the move is to improve affordability while ensuring availability of critical cancer treatment.

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