For some time now, there has been a discussion regarding the high cost of cancer medications. The government has now taken a major decision in this regard. On Saturday, the National Pharmaceutical Pricing Authority (NPPA) capped the trade margin at 30 percent for 137 non-scheduled anti-cancer drugs. This list includes medicines such as pembrolizumab, ribociclib, and abemaciclib. The Ministry of Chemicals and Fertilizers stated that this decision will come into effect from November 9. It is expected that the retail prices of these life-saving drugs will decrease by up to 70 percent compared to their current costs. Following the issuance of a gazette notification on Saturday, the NPPA implemented the Trade Margin Rationalization (TMR) mechanism in accordance with Paragraph 19 of the Drugs (Prices Control) Order, 2013. The NPPA operates under the Department of Pharmaceuticals.
According to the Ministry, this move is based on the recommendations of an expert committee constituted under the Directorate General of Health Services (DGHS). The committee comprised leading cancer specialists, medical experts, hospital representatives, and government officials from across the country. The committee recommended the rationalization of trade margins for 137 drugs. This list will also be updated from time to time. In 2019, margins were also fixed for 42 medicines.
This initiative is based on a pilot scheme launched by the NPPA in 2019. At that time, a trade margin of 30 percent was set for 42 anti-cancer drugs. As a result, the Maximum Retail Price (MRP) of 526 brands of these medicines was reduced by up to 90 percent.
The Ministry has stated that a significantly larger number of cancer drugs have now been included under this new arrangement. Pharmaceutical companies have been directed to publish their revised price lists on the government website and to ensure that this information is widely disseminated to retailers and hospitals. Furthermore, retailers and hospitals must sell medicines at the revised rates starting from November 9th and display the new prices in their pharmacies.
