The Government has approved a 30% cap on trade margins for non-scheduled anti-cancer medicines, a move aimed at making cancer treatment more affordable. The decision is expected to ease the financial pressure on patients and their families by limiting the margins added to these medicines along the supply chain.

Which Medicines Will Be Covered?

The policy covers non-scheduled anti-cancer medicines across several categories, including branded and generic drugs, medicines manufactured in India and those imported from abroad, as well as patented and non-patented medicines.

An expert committee will finalise the list of medicines that fall under the new policy. Manufacturers will also be required to maintain their current production levels to help ensure that supplies of these medicines continue.

Earlier Price Controls Delivered Significant Savings

The Government has previously taken steps to bring down the cost of cancer medicines. In February 2019, following a government directive, the National Pharmaceutical Pricing Authority (NPPA) capped trade margins on 42 selected non-scheduled anti-cancer drugs under Paragraph 19 of the Drugs (Prices Control) Order, 2013.

The move led to reductions of up to 91% in the Maximum Retail Prices (MRPs) of the selected medicines. It also resulted in reported annual savings of ₹984 crore across 526 brands, providing financial relief to cancer patients.

Building on the results of that intervention, the Government has now approved a wider cap. The latest measure also seeks to address pricing issues identified in the medicine supply chain. The expected annual savings from the new decision are estimated at ₹2,500 crore, which could offer further relief to people undergoing cancer treatment.

What Does the New Decision Mean for Patients?

By limiting trade margins to 30% of the MRP, the policy aims to curb excessive mark-ups on non-scheduled anti-cancer medicines. The final list of covered drugs will