Centre to cap trade margins on non-scheduled cancer drugs to 30% of MRP

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In a bid to make cancer treatment more affordable and reduce patients’ out-of-pocket expenditure, the Union government has decided to cap trade margins at 30% of the maximum retail price (MRP) for all non-scheduled anti-cancer drugs.

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The measure will cover branded and generic drugs, domestically manufactured and imported medicines, and patented and non-patented products. An expert committee under the Directorate General of Health Services (DGHS) will finalise the list of medicines to be brought under the measure.

Current mark-ups up to 700%

The National Pharmaceutical Pricing Authority (NPPA), which analysed market data, found that the average trade mark-up on non-scheduled anti-cancer medicines was around 170%, with mark-ups reaching up to 700% in some cases. It also found substantial differences between prices charged through retail, hospital, and online pharmacies.