- Trade margins capped at 30% for anti-cancer drugs.
- Aims to improve affordability and patient access.
- Expected annual savings of Rs 2,500 crore for patients.
The Centre has decided to cap trade margins at 30 per cent of MRP for all non-scheduled anti-cancer drugs, covering branded and generic, domestic and imported, patented and non-patented medicines on Thursday.
"Building on the 2019 intervention, which delivered reported annual savings of Rs 984 crore across 526 brands, this measure reinforces the commitment to affordable, accessible and patient-centric healthcare," ANI reported quoting official sources.
How Will It Benefit People
The move has addressed excessive trade markups and aims to improve affordability while ensuring continued availability of these life-saving medicines.
Key benefites:
- Up to 70 per cent reduction in MRP
- Estimated annual savings of Rs 2,500 crore
- Reduced out-of-pocket expenditure for cancer patients
Supreme Court's Strong Observation Over Anti-Cancer Drugs Margin
On September 29, the Supreme Court voiced its concern over a steep markup of ten times on cancer drugs by hospitals and batted for a uniform 16 per cent margin on all medicines. A bench of Justices Vikram Nath and Sandeep Mehta asked the Centre to look into the issue of hospitals mandating the purchase of medicines from their chemists and said it is the common man who suffers from this system.
"This is carnage. Plain and simple. The cancer drug is priced at an MRP of Rs 27,000 despite being supplied to retailers for Rs 2,700. "Corporate hospitals don't spare anyone. They won't allow even the dead body to be taken out. The pharma sector is not bothered," the bench told Solicitor General Tushar Mehta appearing for the Centre.
The bench was hearing petitions concerning regulation of medicine prices, generic prescriptions and controls on medical devices under the Drugs (Prices Control) Order (DPCO), 2013. At the outset, Mehta said they need to find a way out and some balance has to be created.
It also sought directions to ensure strict price control under the DPCO, to prevent violations of the price-fixing mechanism in the drug supply chain and disproportionate profit-making by retailers through unfair trade practices.
(With PTI inputs)