Government caps trade margin on non-scheduled anti-cancer medicines at 30%
What's the story
The government has announced a cap on trade margins for all non-scheduled anti-cancer drugs at 30% of their maximum retail price (MRP). The decision, which was reported by ANI, will apply to both branded and generic medicines, irrespective of whether they are domestically manufactured or imported. This includes patented and non-patented products.
Cost reduction
Expected annual savings of ₹2,500 crore for patients
The government hopes that this move will tackle high trade mark-ups and make life-saving cancer medicines more affordable, PTI said, citing sources.
The cap could bring down the MRP of these drugs by up to 70%, resulting in annual savings of about ₹2,500 crore for patients.
The National Pharmaceutical Pricing Authority (NPPA) has noted that non-scheduled anti-cancer medicines currently have an average price mark-up of around 170%, which can go as high as 700% or more.
Affordable healthcare
Broader efforts to ensure availability and affordability of medicines
The government's latest decision is part of its broader efforts to make medicines affordable while ensuring their availability.
The move is expected to reduce out-of-pocket expenditure for cancer patients and improve access to essential treatments.
It builds on a similar intervention from 2019, which had resulted in annual savings of ₹984 crore across 526 brands.
Legal intervention
Decision follows Supreme Court's concern over drug prices
The decision comes after the Supreme Court expressed concern over inflated prices of anti-cancer drugs.
The court had highlighted instances where drugs were priced at exorbitant MRPs despite being supplied to retailers at much lower rates.
The NPPA has approved this proposal under Paragraph 19 of DPCO, 2013, pending finalization of the list of drugs covered under this exercise.