The Centre’s new 30% trade margin cap on cancer medicines may leave several expensive drugs out of reach for patients, with the prices of 159 out of 643 listed drug packs expected to remain unchanged, according to an analysis of data published by the National Pharmaceutical Pricing Authority (NPPA).
The regulator earlier this month announced the cap covering 137 cancer drugs, which will come into effect on November 9. The measure was expected to reduce maximum retail prices (MRPs) by up to 70%. However, the updated NPPA data analysed by Agra-based advocate K.C. Jain found that while prices of 484 drug packs would fall, 159 would remain unchanged.
The cap does not automatically require every medicine to become cheaper. Under the NPPA’s formula, manufacturers must reduce prices that exceed the prescribed trade margin limit. Products already within or below the 30% limit can retain their existing MRPs.
However, patients’ rights advocates say unchanged prices could continue to make several cancer treatments unaffordable.
Among the medicines whose prices may not fall are ribociclib, used for breast cancer, at ₹24,435 for 21 tablets; pertuzumab and trastuzumab at ₹2,57,207 for a 600 mg vial; and pembrolizumab at ₹2,16,500 for a 100 mg vial. A pack of alectinib, used to treat lung cancer, is priced at ₹4,30,696, while 60 capsules of selumetinib cost ₹10,21,992.
K.M. Gopakumar of the Working Group on Access to Medicines said the cap leaves manufacturers’ prices untouched, potentially limiting its impact on patients who depend on patented and high-cost treatments.
Jain has also questioned the method used to calculate trade margins, arguing that the formula should consider the difference between the manufacturer’s ex-factory price and the MRP, rather than the price charged to distributors. He said high starting prices could restrict the extent of reductions passed on to patients.
The Working Group has further raised concerns about the NPPA relying on prices reported by pharmaceutical companies without independent cost verification.
The affordability challenge is significant. A study of 429 households seeking breast cancer treatment at Mumbai’s Tata Memorial Centre found that 72% had borrowed money or sold possessions to finance treatment.
Source: The Telegraph
