1 hr ago
India Caps Cancer Drug Trade Margins, Prices May Fall 70%
The government is setting a limit on how much can be added to the price of many cancer medicines as they move through the supply chain.
The limit is 30% of the printed maximum retail price.
It applies to several kinds of non-scheduled cancer medicines, including branded and generic drugs.
The government says some prices could fall by as much as 70%.
It estimates patients could save around Rs 2,500 crore each year.
The move followed concerns about very large differences between what retailers pay and the price printed on a medicine.
The Supreme Court raised those concerns using an example of a drug bought for about Rs 2,700 and marked at Rs 27,000.
The government says the change is intended to make cancer treatment medicines more affordable.
The government will cap trade margins at 30% of the MRP for all non-scheduled anti-cancer drugs.
The cap covers branded and generic, domestic and imported, patented and non-patented medicines.
Officials expect some medicines’ MRPs to fall by up to 70% and estimate annual patient savings of around Rs 2,500 crore.
The Supreme Court questioned a reported price gap in which a drug bought by a retailer for about Rs 2,700 carried an MRP of Rs 27,000.
A 2019 government intervention reportedly generated annual savings of around Rs 984 crore across 526 brands.
- Who
- The Centre, acting on non-scheduled anti-cancer medicines; the Supreme Court raised concerns about their price mark-ups.
- What
- A 30% trade-margin cap will apply to all non-scheduled anti-cancer drugs.
- Where
- India.
- When
- The decision was reported after the Supreme Court recently questioned the price gap; no implementation date is specified.
- Why
- To address large mark-ups and reduce patients’ spending on cancer medicines.
Key facts
- Trade-margin cap
- 30% of the MRP for all non-scheduled anti-cancer drugs
- Medicines covered
- Branded and generic; domestic and imported; patented and non-patented
- Expected price reduction
- Up to 70% in the MRP of certain cancer medicines
- Estimated annual patient savings
- Around Rs 2,500 crore
- Example raised by the Supreme Court
- A medicine reportedly bought by a retailer for around Rs 2,700 had an MRP of Rs 27,000
- Earlier intervention
- A 2019 measure reportedly saved around Rs 984 crore annually across 526 brands
Quotes
Supreme Court
The court questioning the large gap between the retailer price and MRP of a cancer medicine.
“This is sheer loot and daylight robbery of patients. How can an MRP of Rs 27,000 be printed on the packet of a drug that the manufacturer sells to the retailer for Rs 2,700? It is shocking that the officials who ought to take a decision on this matter remain completely silent. The reasons for this need no explanation.”
NDTV
Sources
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