Centre caps cancer drug trade margins at 30 pc after our report: Karnataka Health Department
Bengaluru: The Union government has capped trade margins on cancer medicines at a maximum of 30 per cent of their price, following a report by the Karnataka Health Department highlighting excessive mark-ups on cancer drugs and sustained efforts by state Health Minister U.T. Khader to address the issue, according to a statement issued by the state Health Department on Friday.
Khader had raised concerns over the substantial difference between the production costs and retail prices of cancer medicines, alleging that pharmaceutical companies were imposing excessive mark-ups on essential drugs and medical devices.
Around a month ago, he had highlighted instances in which medicines costing Rs 86 were being sold for Rs 4,528, drugs costing Rs 160 were priced at Rs 7,110, and medicines costing Rs 118 were being sold for Rs 4,416. He also alleged that cancer medicines and medical devices were being sold at prices 10 to 52 times their costs.
Seeking urgent intervention, Khader had written to Union Health Minister J.P. Nadda, urging the Centre to take stringent measures against excessive pricing and ensure transparency in the disclosure of landing and selling costs in hospitals.
The Karnataka government’s investigation report and Khader’s efforts have now been followed by the Centre’s decision to restrict trade margins on cancer medicines to a maximum of 30 per cent of the cost, according to the statement.
The move comes amid growing concerns over the affordability of cancer treatment and the high prices of patented medicines.
The Kerala High Court had recently expressed serious concern over the excessive pricing of patented cancer drugs, while the Supreme Court had also questioned the Centre over rising medicine prices, the statement said.
Khader had also advocated granting wider powers to the National Pharmaceutical Pricing Authority (NPPA), which currently has the authority to regulate prices of specified medicines, to enable more comprehensive oversight of drug pricing.
He had argued that stronger regulatory powers were necessary to prevent excessive pricing and ensure that patients could access essential cancer medicines at affordable rates.
The Karnataka government’s intervention has brought renewed attention to the need for greater transparency in pharmaceutical pricing and stronger mechanisms to protect patients from high costs.
The Centre’s decision is being projected by the Karnataka government as a significant policy development in its efforts to curb excessive trade margins on cancer medicines and improve the affordability of treatment.
