The National Pharmaceutical Pricing Authority (NPPA) has decided to cap trade margins for 137 essential cancer medicines at a maximum of 30%, in a move aimed at making treatment more affordable.
According to the decision, the combined wholesale and retail trade margins have been restricted to 30% to curb excessive profits by intermediaries and sellers.
The NPPA’s action is expected to bring down the maximum retail price (MRP) of these cancer drugs by as much as 70%. The revised pricing mechanism will come into effect from November 9.
Officials estimate the measure could lead to annual savings of around Rs 2,500 crore. The step has been taken in the public interest, with the stated goal of improving access to cancer treatment for poor and economically weaker sections.
The move follows a similar initiative launched in 2019, when trade margins were capped at 30% for 42 cancer medicines, leading to price reductions of up to 90% across 526 brands.
