Govt caps margin at 30 pc of MRP on non-scheduled cancer drugs; patients may save Rs 2,500 crore annually
New Delhi: The government has expanded price controls on cancer medicines to curb excessive pricing and reduce out-of-pocket expenses for patients, according to an official statement.
The Ministry of Chemicals and Fertilisers said it caps margins on the supply and sale of non-scheduled anti-cancer drugs at 30 per cent of the Maximum Retail Price (MRP).
The decision is expected to reduce prices by up to 70 per cent and help cancer patients save Rs 2,500 crore annually, it added.
Moreover, essential cancer medicines in the scheduled list are already subject to government-set ceiling prices.
The new decision extends protection to non-scheduled cancer medicines outside that list by limiting margins added before they reach patients.
An expert committee under the Directorate General of Health Services (DGHS) will finalise list of medicines to be covered and the National Pharmaceutical Pricing Authority (NPPA) will then issue a notification, the government said.
It further noted that cancer incidence is rising in India with approximately 60 people per one lakh population affected saying that NPPA’s analysis found non-scheduled anti-cancer medicines carry average mark-up of about 170 per cent, reaching 700 per cent or more in some cases with prices varying sharply between retail pharmacy, hospital pharmacy and online channels.
In addition, state authorities in Maharashtra, Rajasthan and Karnataka along with patients and civil society had raised concerns over excessive prices and large gap between purchase price and MRP.
The intervention builds on the 2019 decision when NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs under DPCO, 2013 which reduced MRPs by up to 91 per cent with reported annual savings of Rs 984 crore across 526 brands, the government said.
To ensure availability, manufacturers will be required to maintain current production levels.
Also, the cap will cover branded and generic, domestically produced and imported, patented and non-patented, non-scheduled anti-cancer medicines.