India has capped trade margins on 137 identified anti-cancer medicines, with revised prices due from November 9. The Department of Pharmaceuticals says the measure could bring maximum retail prices down by up to 70%, depending on how a medicine is currently priced.
The National Pharmaceutical Pricing Authority announced the measure on October 17. It covers specified non-scheduled drugs, a category outside the scheduled medicines price-control list. The permitted trade margin is 30% of the maximum retail price.
That percentage needs a little unpacking. Under the formula reported by The Indian Express, a medicine supplied to a stockist for ₹70 would have a calculated retail price of ₹100 before applicable GST. If an existing MRP is already below the calculated amount, it must remain at that lower level.
The order also requires companies to maintain supply. Manufacturers cannot simply cut production without the required permission, and overcharging can lead to recovery of the excess amount with interest, the newspaper reported.
A lower retail margin will not solve every affordability problem. Public-health researcher K. M. Gopakumar told The Indian Express that patented medicines could remain expensive even after the change. The announced reduction is therefore not a promise that every cancer prescription will become affordable.
Manufacturers must submit revised prices to the regulator within seven days of the notification. Pharmacies and hospitals are required to charge the revised amounts from November 9 and display the updated lists. Consumers will also be able to check prices through the NPPA website and Pharma Sahi Daam app.
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