Big Relief for Cancer Patients: Cancer Drug Prices May Drop by Up to 70%

The Central Government has announced a major decision that could provide significant financial relief to cancer patients. The government has imposed a maximum cap of 30% on the trade margins of all non-scheduled anti-cancer medicines, which are currently outside the regulated price control list.

With this move, the maximum retail prices (MRPs) of several major cancer drugs in the market are expected to fall by up to 70%. The decision is estimated to help patients save around Rs 2,500 crore annually.

The new rule will apply to all categories of non-scheduled cancer medicines, including branded and generic drugs, domestic and imported medicines, as well as patented and non-patented drugs.

The main objective of this decision is to prevent excessive profit margins by intermediaries and retailers in the medicine supply chain, make life-saving cancer treatments more affordable for the common people, and ensure that the availability of medicines in the market is not affected.

The government’s order comes shortly after the Supreme Court strongly criticised the Centre over the high prices of cancer medicines and the huge gap between purchase costs and maximum retail prices.

During a hearing on September 29, a bench comprising Justices Vikram Nath and Sandeep Mehta expressed concern over a case where a cancer medicine purchased by a retailer for Rs 2,700 was being sold with an MRP of Rs 27,000. The court questioned why patients were being charged nearly ten times the original cost of the medicine.

The Supreme Court also questioned why a uniform trade margin limit could not be implemented for all medicines and directed the government to examine the issue. The court further raised concerns over corporate hospitals allegedly forcing patients to purchase medicines only from in-house hospital pharmacies.

The next hearing in the case is scheduled for October 12, but the government has introduced this significant reform measure ahead of it.