With India’s drug pricing authority capping the trade margins of 42 cancer drugs at 30 per cent, profit margins of hospitals which are already under stress are expected to come under pressure.
Industry insiders pointed out that almost 70 per cent of oncology drugs are sold through the hospital channel.
The government’s move, however, is unlikely to affect pharma companies. The new notified formula for fixing the maximum retail price (MRP) of 42 cancer drugs is based on the price at the first point of sale of the product or price to stockists.
Trade margin is the difference between the