Govt's big decision on cancer drugs, trade margin capped at 30%

amidst the high cost of cancer treatment, the central government has taken a big decision on the price of non-scheduled anti-cancer drugs. The government has taken a big decision. The government has decided to impose a 30% cap on the trade margin of all such anti-cancer drugs. According to news agency PTI, this government move could have a direct impact on the prices of cancer drugs, which often involve significant margins at various levels, from manufacturers to distributors and retailers. It is believed that the MRP of some medicines may come down by up to 70% after this decision. This has raised hopes of bringing down the cost of treatment for cancer patients><

branded or generic medicines covered

Government's new decision is not limited to one type of cancer drug. It will cover both branded and generic non-scheduled anti-cancer drugs. Similarly, both imported and Indian made drugs will be covered. This rule will also be applicable to patented and non-patented drugs.

Government states that this is aimed at reducing the exorbitant trademark-ups that are levied during the sale and distribution of the drugs. Additionally, it is also striving to ensure the availability of lifesaving cancer drugs in the market despite the reduced prices<>

patients will save this much annually

government estimate, this decision could save cancer patients about ₹2,500 crore annually. This will be especially beneficial for patients who require expensive cancer drugs for a long time

In many cases, cancer treatment lasts for a longer duration. The combined cost of surgeries, chemotherapy, radiation and medicines can put a significant financial burden on the families. Therefore, reduction in MRP of medicines is expected to reduce the out-of-pocket expenditure of the patients.

2019 too, the government had taken a similar step

This decision is not the first attempt by the government to impose such a cap on trade margin. Earlier, in February 2019, NPPA had imposed a trade margin limit of 30% on 42 non-scheduled anti-cancer drugs. According to government data, the move led to a reduction of almost 50% in the prices of 526 brands of medicines. Now the government has decided to take this model forward   all non-scheduled anti-cancer   cancer   has decided to apply it to drugs.

What is the difference between Scheduled and Non-Scheduled medicines?

scheduled drugs are medicines that are included in the Drugs (Prices Control) Order i.e. Schedule-I of the DPCO. For this, the government/NPPA can fix the ceiling price. Till March 2026, NPPA had fixed the prices of 131 scheduled anti-cancer drugs.

On the other hand, non-scheduled drugs   Schedule-I   It is not included in the MRP. Even in these cases   MRP is not completely exempt.   Under the current system, the manufacturer cannot increase the MRP of any non-scheduled drug by more than 10% over the MRP of the previous 12 months.