Cancer Drug Prices Set to Fall as Centre Caps Trade Margins at 30%

Cancer drug prices and anti-cancer medicines displayed in a pharmacy setting

Prices of 110 non-scheduled anti-cancer medicines could fall after the Centre approved a 30% cap on trade margins, a measure the Ministry of Chemicals and Fertilisers estimates could reduce patients’ medicine costs by up to 70% and save around Rs 2,500 crore annually.

The proposed price control covers high-cost cancer therapies, including specialised monoclonal antibodies and advanced kinase inhibitors used in precision oncology. These medicines are used in the treatment of cancers such as lung and breast cancer, leukaemia, lymphoma and colorectal cancer.

The medicines identified for possible inclusion comprise around 35 patented formulations and 75 other non-scheduled oncology drugs. Non-scheduled medicines are currently outside the list of drugs for which the government fixes ceiling prices, leaving their trade margins outside the same form of price regulation.

An analysis by the National Pharmaceutical Pricing Authority found that non-scheduled anti-cancer medicines carry an average price mark-up of around 170%. In some cases, the mark-up has reached 700% or more, according to the report. The proposed cap is intended to limit the margin added across the medicine supply chain and reduce the final price paid by patients.

The measure is expected to apply to branded and generic medicines, as well as domestically manufactured and imported products. It will also cover patented and non-patented drugs, subject to the final list prepared by the authorities.

An expert committee under the Directorate General of Health Services will finalise the medicines to be brought under the cap. The NPPA will issue a formal notification after the committee completes this process. Until that notification is issued, the final number of medicines covered and the revised prices for individual products remain to be established.

The government has also proposed production safeguards to prevent shortages after the price intervention. Manufacturers of non-scheduled anti-cancer drugs will be required to maintain their current production levels, according to the report. This requirement is intended to ensure that lower regulated prices do not disrupt the availability of medicines used in ongoing cancer treatment.

The decision addresses a major cost component of cancer care: medicines that may be required over extended treatment periods and are not covered by existing ceiling-price controls. The estimated annual saving of Rs 2,500 crore is based on the Ministry of Chemicals and Fertilisers’ assessment of the proposed margin cap.

The government has provided a public helpline for complaints and concerns related to medicine prices, price caps and overcharging. Patients and members of the public can call 1800-111-255 between 10 am and 6 pm. The next formal step is the expert committee’s finalisation of the covered medicines, followed by the NPPA notification.


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