India Caps Trade Margins on Nonscheduled Cancer Drugs

The Union government has decided to cap trade margins at 30% of the maximum retail price for all nonscheduled anticancer medicines, a measure officials estimate could reduce prices by up to 70% and save patients about Rs 2,500 crore annually. The cap is intended to cover branded and generic medicines, those made in India or imported, and patented and nonpatented products. It applies to trade margins across the distribution chain, rather than setting manufacturers’ selling prices or revenue, the government said. The projected price reductions and savings are estimates, not measured results. The final list of medicines covered has yet to be settled. A committee under the health department will determine which drugs are included; government accounts cited in reports expect about 110 medicines, including 35 patented drugs, to be affected. The government said the policy is aimed at addressing high trade markups while improving affordability and maintaining availability. An analysis by the National Pharmaceutical Pricing Authority found average markups of about 170% on nonscheduled anticancer medicines, with some reaching as high as 700%, according to the government account.