Cancer drug prices may fall as government plans 30% trade margin cap
The Indian government plans to cap trade margins on all cancer drugs at 30% of the maximum retail price to improve affordability. This policy aims to reduce patient costs by 20-70% by curbing excessive mark-ups in the pharmaceutical market.
Why it matters
High drug costs are a major barrier to healthcare access; this regulatory intervention could significantly lower the financial burden for cancer patients in India.
NEW DELHI: In a move that could substantially reduce patient bills, govt has decided to cap trade margins at 30% of MRP for all cancer drugs, covering essential, non-scheduled, branded and generic medicines, as well as domestic and patented drugs.This could slash MRPs of life-saving cancer drugs by 20-70%, and result in annual savings of Rs 2,500 crore, while improving affordability and ensuring their continued availability, officials told TOI.The move seeks to address "excessive trade mark-ups" in the anti-cancer medicines market that is valued around Rs 12,500 crore, and covering approximately 225 drugs and 500 formulations.
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