The NPPA has capped trade margins for 137 non-scheduled anti-cancer drugs at 30% to make them more affordable. The move is expected to slash MRPs by up to 70%, with revised prices effective from November 9.

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has undertaken Trade Margin Rationalisation (TMR) of 137 identified non-scheduled anti-cancer drugs in public interest to address excessive trade margins, make cancer treatment more affordable, and improve access to anti-cancer medicines.

The intervention is expected to bring down the MRP of the identified non-scheduled anti-cancer drugs by up to 70%, depending on their existing price structures. According to a release by the Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, The intervention builds upon the success of NPPA's 2019 pilot TMR exercise, under which trade margins for 42 anti-cancer drugs were capped at 30%. Following that exercise, MRP of 526 brands of non-scheduled anti-cancer medicines was reduced by up to 90%.

Making Cancer Treatment More Affordable

The present exercise extends this approach to a larger set of anti-cancer drugs, based on the list recommended by the Expert Committee under the Directorate General of Health Services (DGHS). The Expert Committee comprised leading oncologists, medical specialists, experts from hospitals across the country, and Government officers. It deliberated upon and recommended 137 drugs for inclusion under TMR. This list would be updated periodically.

Considering the drugs recommended by the Committee, NPPA has capped trade margin at 30% of the Maximum Retail Price (MRP), in accordance with Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013. This measure is expected to bring significant relief to the many patients and families affected by cancer, who often face a high financial burden due to the high cost of treatment, the release said.

Implementation and Compliance Measures

All manufacturers will be required to inform NPPA of their revised prices within 7 days of publication of the Gazette notification. The revised prices will become effective from November 9. Manufacturers will be required to display the price lists on their website and widely disseminate to all retailers and hospitals.

All the retailers and hospitals shall charge reduced prices effective November 9 and display the revised prices in their pharmacies. Hospitals shall also prominently display revised prices on their websites. Consumers can use the Pharma Sahi Daam app and NPPA website to check revised prices of drugs.

As substantial supply of anti-cancer drugs is directly made to hospitals and medical institutions, they shall be responsible for ensuring revised prices of such drugs from the date of implementation. State Drug Controllers will take necessary steps to ensure compliance by manufacturers, dealers, including retailers, hospitals and medical institutions.

The measure for TMR on anti-cancer drugs aims to control excessive trade margins in the distribution and retail channel while safeguarding legitimate manufacturer revenues and preventing artificial market shortages. Pharmaceutical companies will be required to maintain current production and supply levels for the notified formulations to ensure timely and uninterrupted access for patients, the release said.

By making anti-cancer drugs more affordable and accessible, this initiative will help ease the financial burden on patients and their families and support the broader public-health objective of equitable access to cancer treatment. (ANI)

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