According to official sources in the Department of Pharmaceuticals, the new measure is expected to result in reductions of up to 70% in the MRP of certain cancer medicines. The government estimates that the move could lead to annual savings of around Rs 2,500 crore for patients.
Cancer treatment can place a heavy financial burden on patients and their families, as the cost of medicines form a major part of the overall expense. The issue recently came under scrutiny after the Supreme Court questioned the huge gap between the Price to Retailer (PTR) and Maximum Retail Price (MRP) of some cancer medicines. During the hearing, the court pointed to an example where a cancer drug bought by retailers for around Rs 2,700 carried an MRP of Rs 27,000.
In response to concerns over excessive mark-ups, the Centre has now taken steps to make cancer medicines more affordable. The government has decided to cap trade margins at 30% of the MRP for all non-scheduled anti-cancer drugs. The measure covers branded and generic medicines as well as domestic and imported drugs, including patented and non-patented medicines.
Cancer Drug Prices May Fall By Up To 70%
According to official sources in the Department of Pharmaceuticals, the new measure is expected to result in reductions of up to 70% in the MRP of certain cancer medicines. The government estimates that the move could lead to annual savings of around Rs 2,500 crore for patients. By reducing the price gap, the measure is expected to reduce out-of-pocket spending on cancer treatment.
What Is The New Trade Margin Cap?
The government has decided that trade margins for all non-scheduled anti-cancer drugs will be capped at 30% of the MRP. This applies across different categories of medicines, including branded and generic drugs, medicines manufactured in India or imported from other countries, and patented and non-patented medicines. The move aims to address excessive mark-ups at different stages of the supply chain. It also seeks to make pricing more transparent and ensure that patients are not forced to pay disproportionately high prices for essential cancer medicines.
Why Did The Supreme Court Raise The Issue?
The Supreme Court recently questioned the Centre over the massive difference between PTR and MRP of cancer medicines. In one example discussed during the hearing, a medicine with a PTR of around Rs 3,000 was reportedly carrying an MRP of Rs 27,000.
The court questioned why such large price differences were allowed for essential and life-saving medicines. It also pointed out that when expensive medicines are used under government health schemes, the financial burden can ultimately fall on taxpayers.
The court said, “This is sheer loot and daylight robbery of patients. How can an MRP of Rs 27,000 be printed on the packet of a drug that the manufacturer sells to the retailer for Rs 2,700? It is shocking that the officials who ought to take a decision on this matter remain completely silent. The reasons for this need no explanation.”
The latest decision builds on measures taken by the government in 2019 to control the prices of cancer medicines. According to official sources, that intervention reportedly resulted in annual savings of around Rs 984 crore across 526 brands.
The new 30% trade-margin cap is expected to strengthen those efforts by bringing a wider range of non-scheduled anti-cancer medicines under a common pricing framework.
What Does This Mean For Cancer Patients?
One of the most important expected benefits is to lower spending on medicines. For patients who need cancer treatment over several months or longer, even a reduction in the price of individual medicines can impact the overall cost of cancer care. The Centre’s latest move is therefore aimed at reducing financial pressure on cancer patients while maintaining the availability of essential medicines.
