NPPA caps cancer drug margins at 30% in India
India
Big change coming for cancer treatment in India: starting November 9, the NPPA has capped trade margins at 30% of MRP (excluding GST) on 137 non-scheduled cancer drugs, thanks to a new rule.
The goal? Make pricey medicines like pembrolizumab and bevacizumab more affordable for patients, but it means less profit for hospital pharmacies.
Hospitals foresee pharmacy earnings drop
Hospitals like Apollo, Max Healthcare, and Fortis expect a noticeable dip in pharmacy earnings, especially by late fiscal 2027, analysts say.
Max could see profits drop around 4%.
Still, these hospitals aren't slowing down on expanding their cancer care facilities.
Long-term growth looks promising, though experts warn that lower pharmacy sales might slow down how much each patient bed earns overall.