Govt to cap trade margins on anti-cancer drugs at 30%, says IPA

The Indian government will cap trade margins on non-scheduled anti-cancer drugs at 30%. The Indian Pharmaceutical Alliance (IPA) and medical experts have welcomed the move, highlighting its potential to make cancer care more affordable and equitable.

The government of India has decided to cap trade margins on non-scheduled anti-cancer drugs at 30 %, according to the Indian Pharmaceutical Alliance (IPA). The announcement of trade margin rationalisation for cancer medicines is a welcome step.

As per the Indian Pharmaceutical Alliance (IPA), the announcement of trade margin rationalisation for cancer medicines is a welcome step. Medicine prices in India are among the lowest in the world. Indian companies play a vital role in providing quality-assured, affordable medicines. This is a balanced approach for patient welfare while assuring adequate margins to the channel members.

Experts Welcome Move, Urge Vigilance on Quality

On the other hand, top medical experts have suggested ensuring actual patient savings without compromising quality. Surgical Oncologist, AIIMS Delhi Dr MD Ray said, "As a surgical oncologist, I welcome the proposed trade margin cap. Lower drug prices could improve access to preoperative and postoperative systemic therapy, reduce treatment abandonment, and ease financial distress. However, “up to 70%” is no universal guarantee. Implementation must ensure actual patient savings, uninterrupted supply, quality, and rational prescribing."

Assistant Professor of Radiation Oncology, AIIMS, Delhi, Dr Abhishek Shankar said, "The government’s decision to cap trade margins on non-scheduled anti-cancer medicines is a significant step towards making cancer care more affordable and equitable in India. For many families, the cost of medicines is not just a financial burden; it can determine whether a patient continues treatment or is forced to compromise. The proposed price reductions of up to 70% could provide meaningful relief and reduce out-of-pocket expenditure."

"Effective implementation, transparent pricing, regular monitoring and uninterrupted availability of quality medicines will be essential to translate this policy into real benefits for patients." He said.

"Affordability must become a reality at the pharmacy counter and the patient’s bedside. Cancer treatment should be guided by clinical need, not by a family’s ability to pay." He added further about the clinical need behind the cancer treatment

Industry Applauds Patient-Centric Decision

CEO ENTOD Pharmaceuticals, Nikkhil K Masurkar, said, "This is a welcome and patient-centric decision by the Government of India under the leadership of the Health Minister. Excessive trade margins on life-saving medicines have long contributed to the financial burden faced by cancer patients and their families."

"Rationalising these margins without affecting manufacturers’ revenues is a balanced approach that protects patient interests while supporting the pharma industry. Healthcare affordability should never be compromised by disproportionate commercial margins. This is an important step towards making cancer treatment more accessible, affordable and equitable in India," he added.

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