NPPA Caps Trade Margins on 137 Cancer Drugs; Prices to Fall From Nov 9

The National Pharmaceutical Pricing Authority (NPPA) has capped trade margins on 137 non-scheduled anti-cancer medicines at 30 per cent of their maximum retail price (MRP), a move the government says could cut the prices of several cancer drugs by up to 70 per cent. The revised prices take effect on November 9, 2026, under the Trade Margin Rationalisation exercise of the Department of Pharmaceuticals in the Ministry of Chemicals and Fertilizers.

Immunotherapy and Breast Cancer Drugs on the List

The list, drawn up on the recommendation of an expert committee under the Directorate General of Health Services, includes targeted therapies and immunotherapies such as pembrolizumab, nivolumab, osimertinib, palbociclib, ribociclib, atezolizumab and bevacizumab. It also covers denosumab, used in breast and prostate cancer, and pegfilgrastim, given to prevent neutropenia in cancer patients.

The cap applies to all non-scheduled formulations containing any listed drug, alone or in combination, whatever the strength or dosage form, and covers patented medicines unless exempted, The Tribune reported. The NPPA said the list may be updated from time to time.

How the New MRP Will Be Worked Out

The revised MRP will be based on each manufacturer’s net sales realisation for March 2026, excluding government sales. If the existing MRP is higher than the formula allows, companies must cut it; if it is already lower, it stays. Manufacturers must notify the NPPA of revised prices within seven days of the Gazette notification and publish price lists on their websites.

Companies must also maintain existing production levels. Any cut in average monthly output needs prior NPPA permission, and discontinuing a formulation needs six months’ notice.

Price Boards at Chemists and Hospitals

Retailers and hospitals must charge the reduced prices and display them, and hospitals must also show them on their websites. Patients can check revised prices on the Pharma Sahi Daam app and the NPPA website, while State Drug Controllers will oversee compliance.

The move builds on a 2019 pilot that capped margins on 42 anti-cancer drugs, after which the MRPs of 526 brands fell by up to 90 per cent, according to the official statement. A Bloomberg report carried by ThePrint noted that about 44 per cent of India’s health spending is paid out of pocket.

The new prices are due at chemist shops and hospital pharmacies from November 9. More on prices and household costs is in IPB News’s Economy section and Daily Updates.

Based on reporting by The Tribune, The Hans India / IANS and ThePrint / Bloomberg.

Image: ThePrint / Bloomberg.