Cancer Drug Price Cuts Fail to Benefit Patients Using Expensive Brands

The government’s decision to cap trade margins on non-scheduled anti-cancer medicines has reduced the maximum retail prices (MRPs) of nearly three-fourths of the listed cancer drug brands in India. More than 200 formulations have recorded price reductions of 50% or more, offering significant relief to patients. However, several high-cost patented cancer treatments, including Keytruda, nivolumab and osimertinib, remain unaffected, limiting the benefits for patients relying on newer therapies.

NPPA Data Shows Significant Reduction in Cancer Drug Prices

According to the revised price list published by the National Pharmaceutical Pricing Authority (NPPA), based on company filings received up to October 27, prices have declined across 397 of the 543 listed brand, strength and pack-size entries. The revised list indicates an average price reduction of approximately 50% among the affected entries. These changes follow the government’s directive requiring pharmaceutical companies to revise prices before the November 9 deadline.

Government Caps Trade Margins at 30%

On October 17, the NPPA issued an order capping trade margins at 30% for 137 non-scheduled anti-cancer medicines. The authority invoked Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, which empowers the government to regulate medicine prices in the public interest. These medicines do not fall under the National List of Essential Medicines (NLEM) and therefore are not subject to direct price fixation under the standard provisions of the drug pricing framework. However, the government can exercise its special powers under Paragraph 19 to control their prices and improve affordability.

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Expensive Patented Cancer Treatments Remain Unaffected

Despite the significant reductions across several cancer drug brands, some expensive patented treatments, including Keytruda, nivolumab and osimertinib, have not recorded price changes. Consequently, patients using these newer therapies may not receive the same level of financial relief as those relying on medicines covered by the revised pricing measures. As reported by thehindubusinessline.com, the latest price revisions represent a significant step towards improving the affordability of cancer medicines in India. However, the unchanged prices of several high-cost patented treatments highlight the continuing challenges in making advanced cancer therapies more accessible to patients.