The Centre has decided to cap trade margins at 30% of the Maximum Retail Price (MRP) for non-scheduled anti-cancer drugs, according to government sources.
The measure will cover branded and generic medicines, as well as domestic and imported drugs, including patented and non-patented anti-cancer medicines.
Editorial Insight
Key Highlights
Important points readers should notice.
Trade margins on non-scheduled anti-cancer drugs to be capped at 30% of MRP.
The measure is expected to cover 110 anti-cancer drugs.
The list includes 35 patented medicines.
Branded, generic, domestic and imported medicines are covered.
MRPs of some affected medicines could fall by up to 70%.
Estimated annual savings are around Rs 2,500 crore.
The decision is aimed at addressing high trade mark-ups, improving the affordability of cancer medicines and ensuring their continued availability.
The measure is expected to cover 110 anti-cancer drugs, including 35 patented medicines, and is expected to be implemented later this month.
The government estimates that the move could reduce the MRPs of some affected medicines by up to 70%, depending on their existing trade margins. It also estimates annual savings of around Rs 2,500 crore for patients.
Editorial Analysis
Why This Matters
The decision is aimed at reducing excessive trade mark-ups and lowering the financial burden on patients purchasing non-scheduled anti-cancer medicines.
The decision expands on the trade-margin rationalisation measure introduced in 2019, when trade margins on 42 non-scheduled anti-cancer medicines were capped at 30%. According to government data, the earlier measure reduced the MRPs of 526 brands by an average of around 50% and resulted in estimated annual savings of about Rs 984 crore.
