India to cut prices of 137 anti-cancer drugs by up to 70%
India will reduce the prices of 137 non-scheduled anti-cancer drugs by up to 70% under expanded price controls aimed at making cancer treatment more affordable.
The revised prices will take effect from November 9, according to the Ministry of Chemicals and Fertilizers.
The medicines include immunotherapy drugs used to treat 20 types of cancer, as well as breast, prostate, colon, ovarian and cervical cancers.
The measures will cap trade margins on the drugs at 30% of the maximum retail price (MRP), potentially saving patients up to Rs 25 billion ($263 million) annually, according to an earlier government statement.
“With the increasing incidence of cancer in the country, access to affordable, quality-assured medicines is critical,” said Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance.
Jain said the new measures would optimise prices for oncology products while allowing adequate margins for channel partners.
The price cap will apply uniformly to branded and generic formulations, domestic and imported products, and patented and non-patented medicines.
The latest cuts expand on price controls introduced in 2019 for 42 anti-cancer medicines, which reduced prices by up to 90%.
The move follows increased scrutiny of medicine markups after India’s Supreme Court questioned steep margins on life-saving cancer drugs. The court also asked the government to investigate allegations that hospitals require patients to buy medicines from their own or designated pharmacies.
The scrutiny has raised concerns about the impact on private hospitals that generate a significant share of revenue from medicines and related services. HealthCare Global Enterprises derives 72% of its revenue from oncology, while the figure is about 24% for Max Healthcare Institute and 16% each for Apollo Hospitals Enterprise and Fortis Healthcare.
Nomura estimated that average drug prices in India could fall by around 50%, with a stronger near-term impact on companies with greater exposure to oncology, according to an October 9 note.