Fixed ceiling, retail prices to ensure affordable cancer drugs: Govt in LS

The Ministry of Chemicals and Fertilisers on Friday said that the government is taking various measures, such as the fixation of ceiling and retail prices, to make cancer drugs affordable and accessible.

 

In response to a parliamentary query, the ministry said that the Department of Pharmaceuticals, through the National Pharmaceutical Pricing Authority (NPPA), has fixed ceiling prices for 131 scheduled anti-cancer formulations under the National List of Essential Medicines (NLEM).

 

This includes 111 formulations whose prices were fixed under NLEM 2015, whereas NLEM 2022 includes 63 anti-cancer drugs, including immunosuppressives and medicines used in palliative care.

 

“Refixation of the same under NLEM 2022 has resulted in a reduction of around 21 per cent from the ceiling prices fixed under NLEM 2015, leading to annual savings of around Rs 294.34 crore for patients,” the ministry added.

 

 

The NPPA fixes ceiling prices under the provisions of the Drugs (Prices Control) Order, 2013, in respect of the drugs specified in Schedule-I to DPCO 2013.

 

Under this, manufacturers of scheduled medicines, both branded and generic, are required to sell their products within the ceiling price (plus applicable Goods and Services Tax) fixed by the NPPA.

 

The ministry also stated that the NPPA has fixed the retail prices of 28 anti-cancer formulations of applicant manufacturing and marketing companies.

 

The NPPA fixes the retail price of new drugs, which is applicable to the applicant manufacturer and marketer, who are required to sell the new drug within the price notified.

 

“In addition, the body put a cap of 30 per cent trade margin on 42 non-scheduled anti-cancer medicines, which resulted in a reduction of the maximum retail price (MRP) of 526 brands of these medicines by an average of around 50 per cent and annual savings of around Rs 984 crore for patients,” the ministry said.

 

The ministry added that it reduced customs duty to nil and Goods and Services Tax (GST) rates from 12 per cent to 5 per cent for three anti-cancer drugs in the financial year (FY) 2024-25.

 

“The NPPA issued directions to companies to reduce the MRP to pass on the tax benefit to consumers,” it said.

 

This was followed by exemptions and concessions in customs duty on identified anti-cancer medicines, which were announced in the budget for FY 2025-26.