New Delhi: In a bid to curb profiteering from life-saving medicines, the government put a cap of 30 percent on trade margins of 42 cancer drugs on Friday.
The National Pharmaceutical Pricing Authority (NPPA) put out the list of 390 anti-cancer non-scheduled medicines with MRP reduction up to 87%. The revised prices would come into effect from this very day (March 8).
Just last week, the NPPA had put 42 anti-cancer drugs under the 30% Trade Margin cap.
“Manufacturers and hospitals were directed to convey revised MRP, to be effective from 8th March, 2019, based on the Trade Margin (TM) formula. 390 brands i.e. 91% of the 426 brands reported by manufacturers, showed downward price movement,” said a statement.
This, officials maintained, would address the fact that out of pocket expenditure for cancer was 2.5 times higher than for other diseases.
“This will benefit 22 lakh cancer patients in the country and will result in net savings of approximately Rs 800 crore,” claimed an official.
These are in addition to 57 cancer drugs already under price control. “Forty two non-scheduled anti-cancer medicines have now been selected for price regulation by restricting trade margin of the selling price up to 30%," the NPPA said.
A senior official from the NPPA said, “In spite of the fact that India has made significant advancements in health care, out of pocket expenditure on medicines remains the largest cause for families being pushed to the brink.”
The NPPA currently fixes price of drugs on the National List of Essential Medicines under schedule I of DPCO. So far, around 1,000 drugs have been price-capped through this mode.
The move, the government hopes, will usher in a new era of self-regulation of prices in the pharma industry.
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