Govt caps trade margins of 42 anti-cancer drugs at 30%
NEW DELHI: The prices of select anti-cancer drugs could be slashed by up to 85%, with the National Pharmaceutical Pricing Authority (NPPA) capping the trade margins of 42 anti-cancer drugs available in the market at up to 30%.
As per data available with the National Pharmaceutical Pricing Authority, the maximum retail price (MRP) of 105 brands will be reduced by up to 85%. This would provide a saving of minimum ₹105 crore to consumers.
In an order issued on Wednesday, the drug price regulator stated that the drug prices of 355 brands will effectively come down after the trade margins on the selling price are capped.
Trade margin is the difference between the price at which the manufacturers sell the drugs to distributors and the final price paid by patients.
The revised prices shall come into effect from March 8. The manufacturers have been given seven days to recalculate the prices and inform the National Pharmaceutical Pricing Authority, State Drug Controllers, stockists and retailers.
So far, 57 anti-cancer drugs are already under price control as scheduled formulations, or drugs that are available in hospitals.
“The decision was taken in a meeting held on Tuesday, and the decision to include these 42 drugs was taken after considering recommendations made by an expert committee tasked with forming a list,” said an official at the department of pharmaceuticals.
“It’s a well thought out list and will stay valid for a year after which it will be open to review,” he added on condition of anonymity.
NPPA STATED THAT DRUG PRICES OF 355 BRANDS WILL EFFECTIVELY COME DOWN AFTER TRADE MARGINS ON SELLING PRICE ARE CAPPED
Cancer is one of the leading causes of death due to chronic and non-communicable diseases (NCD) among adults in India.
As per World Health Organization estimate, there are approximately 18 million cases globally per year and 1.5 million in India alone.
In 2018,some 800,000 cancer deaths occurred in India in 2018, and the number of new cases is estimated to double in India by 2040.
The National Pharmaceutical Pricing Authority currently fixes prices of drugs placed in the National List of Essential Medicines (NLEM) under Schedule-i of the Drugs (Prices Control) Order, or DPCO.
So far, around 1,000 drugs have been price-capped.
The Indian pharmaceutical industry is valued at $34 billion, about 50% of which is exported to other countries.
The scheduled formulations (drugs available in hospitals) currently under price cap form 16-17% of the pharma industry, and the National Pharmaceutical Pricing Authority has ensured that the annual price increase of medicines available in markets is not more than 10% annually.
“The current intervention is being undertaken as pilot for ‘proof of concept’ for Trade Margin Rationalization,” a National Pharmaceutical Pricing Authority statement reads.
Cancer experts say it always helps when prices are slashed.
“I’d say at least 15-20% of my patients will be able to comfortably afford treatment if the prices come down,” said Dr Harit Chaturvedi, chairman, Max Institute of Oncology.