Cancer Drug Prices May Fall Up To 70%, Govt Targets ₹2,500 Crore In Annual Patient Savings

New Delhi: The government has announced expanded price controls for non-scheduled cancer medicines, aiming to reduce treatment expenses and curb excessive pricing. According to the Ministry of Chemicals and Fertilisers, margins on their supply and sale will be capped at 30 per cent of the Maximum Retail Price.

Cancer Drug Prices Could Fall Sharply

The ministry estimates that the measure could lower prices by up to 70 per cent and deliver annual savings of ₹2,500 crore for cancer patients.

Essential cancer drugs included in the scheduled list already have government-fixed ceiling prices. The proposed extension targets medicines outside that list, limiting margins before these products reach patients.

An expert committee under the Directorate General of Health Services will identify the medicines covered. The National Pharmaceutical Pricing Authority will subsequently issue the notification.

NPPA Flags Excessive Medicine Mark-Ups

The government said cancer affects approximately 60 people per lakh population in India, highlighting the need for affordable treatment.

NPPA’s analysis found average mark-ups of about 170 per cent on non-scheduled anti-cancer medicines. In some cases, these reached 700 per cent or higher.

Prices also differed substantially across retail pharmacies, hospital pharmacies and online sellers. Authorities in Maharashtra, Rajasthan and Karnataka, alongside patients and civil society organisations, had flagged excessive pricing and wide differences between purchase costs and MRPs.

Earlier Controls Delivered Patient Savings

The intervention follows NPPA’s 2019 trade-margin cap on 42 selected non-scheduled anti-cancer drugs under the Drugs Prices Control Order, 2013.

That exercise reduced MRPs by up to 91 per cent across 526 brands, with reported annual patient savings of ₹984 crore, according to the government.

Coverage And Supply Requirements

The expanded cap will include branded and generic medicines, whether manufactured domestically or imported. Patented and non-patented non-scheduled anti-cancer drugs will also fall within its scope.

Manufacturers must maintain production levels to support availability. The final medicine list and NPPA notification will determine which products receive the expanded pricing protection.