Govt to cap trade margins on anti-cancer drugs at 30 pc of maximum retail price
The move is expected to save cancer patients Rs 2,500 crore annually and cover 110 anti-cancer drugs, including 35 patented medicines
New Delhi, Oct 8 (PTI) The Centre has decided to cap trade margins at 30 per cent of the MRP for all non-scheduled anti-cancer drugs, a move which is expected to reduce their maximum retail price by up to 70 per cent, an official statement said on Thursday.
The move will lead to an estimated annual savings of Rs 2,500 crore for cancer patients, it said.
The non-scheduled anti-cancer drugs will cover branded and generic, domestic and imported, patented and non-patented medicines, according to sources.
In a notification, the National Pharmaceutical Pricing Authority (NPPA), the regulatory body that controls prices of pharmaceutical drugs, noted that the proposed intervention is expected to reduce maximum retail price (MRP) broadly in the range of 20-70 per cent, depending upon the existing trade structure and mark-up of individual medicines.
The move addresses excessive trade mark-ups and aims to improve affordability while ensuring continued availability of these life-saving medicines, sources said.
Cancer incidence is rising in India, with approximately 60 people per one lakh population affected by cancer, the statement said, adding that the treatment places a heavy financial burden on patients and their families, who often have to pay substantial amounts from their own pockets.
"NPPA's analysis of market data found that non-scheduled anti-cancer medicines carry an average price mark-up of approximately 170 per cent, reaching 700 per cent or more in some cases. In simple terms," the official statement said.
The decision, which is expected to be implemented later this month, will bring down prices of 110 anti-cancer drugs, including 35 patented medicines.
"The primary aim of the trade margin rationalisation (TMR) is to prevent mis-selling malpractices. There is a tendency to sell drugs having a bigger margin, and since anti-cancer drugs are more expensive than the rest, we wanted to cap the trade margins on them," the sources said.
The NPPA said that in a meeting held on Thursday, it approved, in principle, the proposal for trade margin rationalisation of identified non-scheduled anti-cancer drugs under Paragraph 19 of DPCO, 2013, by capping the trade margin at 30 per cent of MRP subject to finalisation of the list of anti-cancer drugs to be covered under the exercise.
The Supreme Court, on September 29, voiced its concern on the issue of highly inflated prices of anti-cancer drugs.
Batting for a uniform 16 per cent margin on all medicines, a bench of Justice Vikram Nath and Justice Sandeep Mehta told Solicitor General Tushar Mehta appearing for the Centre, "This is carnage. Plain and simple. The cancer drug is priced at an MRP of Rs 27,000 despite being supplied to retailers for Rs 2,700."
"In February 2019, on the government's direction, NPPA capped trade margins on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013.
"That decision reduced MRPs by up to 91 per cent, with reported annual savings of Rs 984 crore across 526 brands. It significantly reduced the financial burden on cancer patients and improved their ease of living," the official statement added.
Once the list of drugs is finalised, these medicines with the new rates will also be available at hospitals, the sources added. PTI