India will cap trade margins on 137 non-scheduled anti-cancer medicines at 30% of their maximum retail price, potentially reducing costs for patients from 9 November.
India has moved to tighten price controls on a wider set of anti-cancer medicines, in a bid to make treatment more affordable in one of the world’s fastest-growing oncology markets.
The government said the National Pharmaceutical Pricing Authority will cap trade margins at 30% of the maximum retail price on 137 non-scheduled anti-cancer drugs, a step that could cut prices by as much as 70%. According to a statement from the Ministry of Chemicals and Fertilisers, the revised prices will take effect on November 9.
Officials said the measure covers medicines used in the treatment of 20 types of cancer, including breast, prostate, colon, ovarian and cervical cancers. The policy applies to both branded and generic products, as well as domestic and imported drugs, regardless of whether they are patented.
The move builds on earlier intervention in 2019, when authorities brought 42 anti-cancer medicines under price controls and cut some prices by up to 90%. The latest action comes amid a broader effort by Indian policymakers to rein in steep mark-ups in the healthcare supply chain, particularly in hospitals, where patients often pay out of pocket.
According to the government’s earlier estimate, limiting margins on these drugs could save patients as much as ₹2,500 crore, or about $263 million, a year. That would be significant in a country where out-of-pocket spending accounts for about 44% of total healthcare expenditure, among the highest shares in major economies.
The industry has acknowledged the need for lower prices, while warning that the policy must still leave room for the distribution network to function. Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance, said affordable, quality-assured medicines are “critical” as cancer cases rise. He said the revised pricing would help optimise oncology drug costs while preserving enough margin for channel partners.
The announcement also follows heightened scrutiny from India’s Supreme Court over hospital mark-ups on lifesaving drugs. Press Trust of India reported that the court recently asked the federal government to investigate claims that some hospitals steer patients towards their own or designated pharmacies, where medicines can carry very large margins. The court reportedly described some of those mark-ups as “carnage”.
Analysts expect the change to hit companies with heavy oncology exposure first. Nomura has estimated that average drug prices in India could fall by about 50%, with the near-term pressure likely to be sharper for businesses more dependent on cancer medicines. That could matter for large private hospital chains as well, where pharmacy sales and related services are an important part of revenue.
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