Cancer Drug Prices Slashed By Over 90%, But Experts Say One-Time Cuts Won't End Overpricing

Public health group, Jan Swastha Abhiyaan has demanded cost-based price controls, permanent caps on trade margins and independent verification of cancer drug prices.

Cancer Drug Prices Slashed By Over 90%, But Experts Say One-Time Cuts Won't End Overpricing
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The prices of several cancer medicines in India are set to fall sharply from November 9, with some brands recording reductions of more than 90%. But Jan Swasthya Abhiyan India (JSA India) has warned that the latest price cuts are not enough to ensure affordable cancer treatment, calling for comprehensive price regulation and stronger oversight of pharmaceutical pricing.

The National Pharmaceutical Pricing Authority (NPPA) released a revised Maximum Retail Price (MRP) list for 543 brands of anti-cancer medicines on October 28, following its trade margin rationalisation (TMR) measure covering 137 non-scheduled anti-cancer drugs. The government says the intervention is intended to curb excessive trade margins and improve access to treatment.

The scale of some reductions, however, has raised questions about the pricing practices that patients have faced for years.

According to the revised list, the price of one brand of palbociclib, a medicine used to treat certain types of breast cancer, has fallen from Rs 40,421.33 to Rs 2,720 for a pack of 21 capsules. The price of a 100 mg vial of thiotepa has dropped from Rs 80,071.86 to Rs 7,150.33. The revised prices will take effect on November 9.

READ | Cancer Drugs Price Cut: Generics Get Cheaper, But The Most Expensive Medicines Escape The Cut

JSA India has questioned whether the latest intervention can deliver lasting affordability without permanent safeguards against excessive margins.

"A one-time MRP reduction is not enough. Without permanent, enforceable margin caps, regular monitoring and verification by NPPA, excessive pricing can persist or re-emerge," the organisation said in its statement.

The public health group has also criticised the pricing formula adopted under the TMR policy, arguing that it allows a substantial markup over the Price to Stockist (PTS), the price at which a manufacturer supplies a medicine to a stockist or distributor.

"The policy's formula is also deeply flawed. Allowing a 42.8% markup over the Price to Stockist (PTS) legitimises excessive margins, particularly in a supply chain often involving only one or two intermediaries or direct sales to hospitals," JSA India said.

The group argued that a substantially lower markup, comparable to the 16% margin applicable to scheduled formulations under the Drug Prices Control Order (DPCO) framework, could have delivered greater savings to patients.

READ | Cancer Drug Prices Slashed: New Rates For 543 Drug Brands From November 9

Why are some cancer drugs still expensive?

While several generic cancer medicines have seen steep reductions, the latest revision has not brought down the listed prices of every high-cost treatment. Some expensive patented medicines remain outside the immediate price relief reflected in the revised MRP list.

This has renewed concerns about the limitations of regulating trade margins without addressing the underlying prices of medicines.

JSA India has also objected to the exclusion of medicines supplied free under Patient Assistance Programmes from pricing calculations, arguing that this can limit the impact of the policy on patients who must purchase their medicines.

The organisation has called for greater scrutiny of patient assistance programmes, free supplies and discounts to establish whether the benefits of such arrangements are translating into lower costs for patients.

The organisation argues that pharmaceutical companies should not be left to calculate and self-report revised MRPs without adequate independent verification.

"Cost-based price control can further reduce medicine prices and curb excessive profiteering. Controlling trade margins alone is insufficient," the organisation said. "Life-saving cancer treatment must be affordable based on medical need, not a patient's ability to pay."



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