The Centre has capped trade margins on non-scheduled anti-cancer medicines at 30 per cent of their Maximum Retail Price (MRP). The move could reduce the prices of some cancer drugs by up to 70 per cent and help patients save an estimated Rs 2,500 crore annually. The central government has taken a major step towards making cancer treatment more affordable by limiting trade margins on non-scheduled anti-cancer medicines to 30 per cent of their Maximum Retail Price (MRP). The decision aims to curb excessive mark-ups in the medicine supply chain and reduce the financial burden on patients undergoing cancer treatment. According to the government, the move could bring down the prices of certain medicines by up to 70 per cent and help patients save around Rs 2,500 crore every year. The measure extends price protection to cancer medicines that are not covered under the existing list of drugs for which the government fixes ceiling prices.

Which Cancer Medicines Will Be Covered Under The New Rule?

The new policy will cover all non-scheduled anti-cancer medicines, including both branded and generic drugs. It will also apply to medicines manufactured domestically as well as imported drugs. Both patented and non-patented anti-cancer medicines will fall under the framework. The government aims to reduce the additional margins charged at different stages of the supply chain, including distribution and retail sales. This is expected to make several expensive cancer medicines more accessible to patients. An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines covered under the measure. The National Pharmaceutical Pricing Authority (NPPA) will subsequently issue the necessary notification.

How Much Money Can Cancer Patients Save?

According to the government's estimate, the move could help cancer patients save approximately Rs 2,500 crore annually. The actual reduction in prices will depend on the existing trade margins and the medicines covered under the policy. While some medicines could see price reductions of up to 70 per cent, the extent of the benefit may vary from one drug to another. Cancer treatment can involve significant expenses, including medicines, chemotherapy, radiation therapy, surgery and regular medical consultations. For patients who require long-term treatment, the cost of medicines can place considerable pressure on household finances. By limiting trade margins, the government hopes to reduce patients' out-of-pocket expenditure and improve access to essential cancer treatment.

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What Is The Difference Between Scheduled And Non-Scheduled Medicines?

Under India's drug price-control framework, medicines are broadly classified as scheduled and non-scheduled drugs.

Scheduled Medicines

These medicines are included in Schedule I of the Drugs (Prices Control) Order (DPCO). Their prices are subject to government regulation, and the NPPA can fix ceiling prices that manufacturers must follow.

Non-Scheduled Medicines

These medicines are not included in the scheduled list and are not subject to the same government-fixed ceiling prices. However, under existing rules, manufacturers cannot increase their maximum retail prices by more than 10 per cent over the preceding 12 months. The latest decision seeks to extend additional price protection to non-scheduled anti-cancer medicines by limiting trade margins to 30 per cent of their MRP.

Government Had Introduced Similar Price Controls In 2019

This is not the first time the government has taken steps to regulate the trade margins of cancer medicines. In February 2019, the NPPA introduced a 30 per cent trade margin cap on 42 selected non-scheduled anti-cancer medicines. According to government figures, the intervention reduced the prices of 526 medicine brands by around 50 per cent and generated estimated annual savings of Rs 984 crore for patients. The latest decision expands this approach to a wider range of non-scheduled anti-cancer medicines, with the objective of addressing excessive mark-ups and improving affordability.

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Why Is The Decision Important For Cancer Treatment In India?

Cancer treatment remains a major financial challenge for many Indian families, particularly when patients require expensive medicines over an extended period. The government has already introduced price controls for scheduled medicines, while other initiatives have sought to improve access to affordable drugs. However, high prices and substantial differences between the purchase cost and the MRP of certain medicines have continued to raise concerns. By extending trade margin controls to non-scheduled anti-cancer medicines, the Centre aims to reduce these price differences while ensuring that life-saving drugs remain available in the market. The government has also stated that manufacturers will be required to maintain current production levels to help ensure the continued availability of the medicines covered under the measure. The extent of the price reduction will depend on the medicines included in the final list and the existing margins. The move is expected to provide financial relief to cancer patients while strengthening efforts to make treatment more affordable across the country.