New Delhi: The Central government has announced relief for cancer patients, introducing a new rule to stop companies and drug sellers from charging excessive profit margins on cancer drugs that are not under price control. The Centre has capped the trade margin on these medicines at 30 per cent. As a result, prices of some cancer drugs could fall by as much as 70 per cent, the government said. The decision is estimated to save patients nearly ₹2,500 crore a year.
The rule applies to both branded and generic medicines, and covers drugs manufactured in India as well as those imported from other countries. All cancer drugs outside price control will come under it, whether or not they are patented.
The government said excessive margins imposed by some players have forced patients to pay heavy prices, and that reducing this is its stated aim. It wants key drugs used in cancer treatment to reach patients at lower prices.
Supreme Court’s scrutiny
The Supreme Court has also reacted sharply to the pricing of cancer drugs in recent days. At a hearing on September 29, the court was told of one cancer drug that reaches the retailer for about ₹2,700 but is sold to the patient for ₹27,000, a difference of nearly tenfold between the purchase price and the MRP.
The court asked the Centre why a uniform cap on profit margins should not be imposed on medicines. It also referred to applying a 16 per cent margin, as is the case for drugs under price control. However, the court did not direct that a 16 per cent margin be imposed nationwide. The case will be heard again on October 12.
The Supreme Court also raised the issue of patients being pressured to buy medicines only from pharmacies inside corporate hospitals. It questioned, in particular, why patients being treated under government schemes should face such a situation.
The government is already taking other steps to bring down the cost of cancer treatment. By March 2026, it had fixed ceiling prices for 131 cancer drugs.