Trade margin fixed at 30% on 137 cancer medicines:Retail prices expected to drop by up to 70% from 9 November

Drug pricing regulator NPPA fixed the trade margin at 30% on 137 non-scheduled cancer medicines on Saturday. According to the Ministry of Chemicals and Fertilisers, the decision will come into effect on 9 November. It could reduce the retail prices of these life-saving medicines by up to 70% from their current prices. The National Pharmaceutical Pricing Authority (NPPA) took the step under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013. A gazette notification was issued on Saturday. The decision was taken by the NPPA, which functions under the Department of Pharmaceuticals, under the Trade Margin Rationalisation (TMR) framework. The step was recommended by an expert committee formed under the Directorate General of Health Services (DGHS). The committee included leading oncologists from across the country, medical experts, hospital specialists and government officials. The committee recommended 137 medicines for rationalising their margins. The list will be updated from time to time. Expansion of the 2019 scheme This step is based on the NPPA’s 2019 pilot TMR scheme. Under the scheme, the trade margin on 42 cancer medicines was fixed at 30%. This led to a reduction of up to 90% in the MRP of 526 brands. The scope of the scheme has now been expanded to include more cancer medicines. Responsibilities of Companies and Hospitals Drug companies will have to publish a list of the revised prices on their official websites. They will also have to widely circulate the list among retailers and hospitals. Retailers and hospitals will have to charge the lower prices from 9 November. They will also have to display the revised prices at their pharmacies. Hospitals purchase a large proportion of cancer medicines directly. They will therefore have to prominently display the new prices on their websites. According to the ministry, hospitals will have the direct responsibility for ensuring that the revised prices are implemented on the ground. Price Checks and Monitoring Consumers can check the new prices of medicines on the NPPA website and the ‘Pharma Sahi Daam’ mobile app. State drug controllers have been directed to ensure strict compliance. They will monitor manufacturers, dealers, retailers, hospitals and medical institutions. NPPA said the aim of this arrangement is to reduce excessive margins in the distribution and retail channels. This will not affect pharmaceutical manufacturers’ legitimate earnings or create an artificial shortage. Pharmaceutical companies have been asked to maintain the current production and supply levels of the notified medicines. The objective is to ensure that essential medicines remain continuously and timely available to patients across the country.