Karnataka seeks wider price caps beyond cancer drugs for other high-cost life-saving drugs

Karnataka has urged the Center to extend price control measures beyond cancer drugs to other high-cost, life-saving drugs used to treat heart and kidney diseases, following the National Drug Pricing Authority’s (NPPA) in-principle approval to limit trade margins on some non-scheduled cancer drugs to 30% of their maximum retail price (MRP).

Addressing presspersons in Bengaluru, Health Minister UT Khader said price rationalization should translate into direct savings for patients and urged the Union government to extend similar measures to other essential medicines where high treatment costs are a burden on patients.

The NPPA, in its meeting on October 8, approved in principle the rationalization of trade margins for non-scheduled anti-cancer drugs identified under section 19 of the Drugs (Price Control) Ordinance, 2013. The measure is subject to finalization of the list of drugs to be covered.

The Ministry of Health and Welfare has been asked to set up an expert committee under the Directorate General of Health Services to recommend that anti-cancer drugs be subject to price control. The committee is expected to submit its report by October 14.

The Center estimates that this measure could reduce the MRP of several anti-cancer drugs by 20-70%, potentially saving patients around ₹2,500 crore. “The financial burden of cancer treatment often pushes families into debt, making it inevitable for them to deplete their savings and sell assets to cover treatment costs,” Mr Khader said.

Citing examples, the minister said a cancer drug/injection costing around ₹3,250 was reportedly valued at ₹23,347. Medicines with a landing price of about ₹3,000 are being sold at a price of ₹27,000. Under the 30% commercial margin cap, the maximum drug price would depend on the relevant price base and could substantially reduce patients’ out-of-pocket expenses, he explained.

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Representation of Karnataka in the center

In a letter dated September 23 to Union Health Minister JP Nadda, the Karnataka government demanded action at the national level after inspections in the state found substantial discrepancies between procurement costs of drugs and prices charged to patients. The state has identified price concerns for 253 drugs and consumables with markups.

Karnataka has sought inclusion of advanced chemotherapy, targeted therapy and other expensive cancer drugs under the Drugs (Price Control) Ordinance, along with comprehensive curbs on trade margins for high-cost and life-saving drugs.

The state also called for expanding NPPA’s oversight of price control and strengthening enforcement against overcharging and profiteering.

Disclosure of drug costs in hospital bills

The state also sought greater transparency in the prices charged to patients. The circular issued on October 1 asked healthcare institutions to disclose both the purchase or landing cost and the MRP of drugs on patients’ bills. The instructions are advisory in nature and their effectiveness is proposed from November 1.

Karnataka’s call follows observations by the Supreme Court questioning why the MRP of essential drugs, including cancer drugs, could not be capped at 16% above the retail price, as is the case for scheduled drugs under the Drugs (Price Control) Ordinance, 2013.

The state said the proposed 30% trade margin cap on non-scheduled cancer drugs should be followed by broader action to cover other essential, high-cost drugs, including those used in heart and kidney treatments, so that the benefits of price rationalization go directly to patients.

Published – 10 Oct 2026 14:17 IST