The government has decided to limit shopkeepers’ profit margins to 30% of the maximum retail price (MRP) on all non-scheduled cancer drugs. This includes both domestically produced branded and generic drugs, as well as patented and non-patented drugs imported from abroad. The government estimates that this will result in savings of approximately ₹2,500 crore. This could reduce expensive cancer treatment by approximately 70%. This is expected to significantly benefit patients.
This government move aims to reduce the excessive profit margins charged by drug dealers on drugs. This will ensure essential and life-saving cancer drugs are available to patients at affordable prices, ensuring their availability in the market.
The government previously took a similar step in 2019. At that time, the government’s measures resulted in annual savings of approximately ₹984 crore on 526 brands of medicines. This new government decision will further strengthen the government’s commitment to providing affordable, easily accessible, and patient-specific healthcare services.
According to the Press Information Bureau (PIB), the prices of medicines for cancer and other diseases are controlled through the Drugs (Price Control) Order, 2013 (DPCO, 2013). The Union Ministry of Health and Family Welfare publishes the National List of Essential Medicines (NLEM). This has been included as Schedule I of the DPCO, 2013 by the Department of Pharmaceuticals. Drugs listed under Schedule I are listed according to their therapeutic category. Anti-cancer formulations fall under Section 7 of Schedule I of the DPCO, 2013. These include immunosuppressive and palliative care drugs. This list contains 131 drugs. Drugs not listed in this list are called non-scheduled drugs.
The National Pharmaceutical Pricing Authority (NPPA) has fixed the maximum prices for 131 anti-cancer scheduled formulations listed in Schedule I. All manufacturers of scheduled drugs (branded or generic) must sell their products within the maximum price (plus GST) set by the NPPA. The NPPA also fixes the retail price of a “new drug” as defined under Paragraph 2(1)(u) of the DPCO, 2013. As of January 27 this year, NPPA has fixed the retail prices of 54 drugs under the anti-cancer therapeutic category. The prices of all cancer drugs are covered under the DPCO, 2013.