The National Pharmaceutical Pricing Authority (NPPA) has capped trade margins at 30% for 137 anti-cancer drugs to make cancer treatment more affordable. This decision is expected to reduce the maximum retail prices (MRPs) of these medicines by up to 70%, easing the financial burden on patients.
- Trade margins capped at 30% for 137 anti-cancer drugs.
- Price reductions of up to 70% expected for patients.
- Includes patented drugs and immunotherapy medicines like pembrolizumab, durvalumab, and osimertinib.
- Revised prices effective from November 9, 2026.
- Manufacturers must maintain production levels and report prices to NPPA.
Why Did NPPA Cap Trade Margins on Cancer Drugs?
The NPPA took this step after concerns were raised about the large difference between the procurement price and the maximum retail price (MRP) of cancer medicines. High trade margins were causing patients to pay significantly more, increasing their financial stress during treatment. By capping trade margins at 30%, the government aims to ensure fairer pricing and better access to essential cancer drugs.
Which Drugs Are Included in the Price Cap?
The price cap applies to 137 anti-cancer drugs, including non-scheduled formulations that contain any of the specified medicines. This includes patented drugs and immunotherapy treatments used for more than 20 types of cancer. Some notable drugs covered are pembrolizumab, durvalumab, osimertinib, denosumab (used for breast and prostate cancer), pegfilgrastim (which helps prevent neutropenia), and bevacizumab (used for colon, ovarian, and cervical cancers).
How Will the New Prices Be Calculated?
Manufacturers must calculate the revised MRP based on the price at which the medicine is sold to stockists or distributors, ensuring that trade margins do not exceed 30%, plus applicable GST. For example, if the price to the stockist is ₹70, the maximum revised MRP can be ₹100, excluding GST. This calculation generally uses the price to stockist or distributor from March 2026.
What Are the Requirements for Manufacturers?
Manufacturers selling medicines above the new MRP must reduce their prices accordingly. Those already selling below the cap should maintain their current prices. The revised prices will take effect from November 9, 2026.
Additionally, manufacturers are required to circulate revised price lists to dealers and retailers within seven days of the notification. They must also display price information on their websites and report prices through the NPPA's Integrated Pharmaceutical Database Management System (IPDMS).
The order mandates that manufacturers maintain existing production levels. Any company intending to reduce monthly production must seek prior permission from the NPPA. Those planning to discontinue production or imports must provide six months’ advance notice.
What Is the Background of This Price Regulation?
This notification builds on a 2019 pilot exercise by the NPPA, which capped trade margins at 30% for 42 non-scheduled anti-cancer drugs. Following that, the MRPs of 526 brands of non-scheduled anti-cancer medicines were reduced by up to 90%. The current move expands the scope to include more drugs and patented medicines, aiming to further improve affordability.
