India’s drug pricing authority has capped trade mark-ups on 137 cancer medicines.
Transcript
Vocabulary in this episode
- take effect
The new prices take effect on 9 November 2026.
The new prices officially begin to apply on that date.
- supply chain
In simple terms, the cap limits the share added by sellers in the supply chain.
The steps and businesses involved in getting medicines from makers to buyers.
- non-scheduled medicines
These are non-scheduled medicines, which are outside India’s National List of Essential Medicines.
Medicines not included in that official list of essential medicines.
- ceiling price
The government does not set a ceiling price for them under that system.
The highest price that sellers are allowed to charge.
- retail price
It set the trade margin limit at 30 percent of the maximum retail price, excluding goods and services tax.
The price charged to a customer buying the medicine from a seller.
- trade margin
It set the trade margin limit at 30 percent of the maximum retail price, excluding goods and services tax.
The amount sellers in the supply chain may add to the medicine’s price.
- trade margin
The government expects the listed medicines’ retail prices to fall by as much as 70 percent, but the actual reduction will depend on each medicine’s existing price and trade margin.
The extra amount added to a medicine’s price as it passes through sellers.
- goods and services tax
It set the trade margin limit at 30 percent of the maximum retail price, excluding goods and services tax.
A tax charged on goods and services.
- capped margins
The policy extends a 2019 pilot that capped margins on 42 cancer medicines.
Set a limit on how much sellers could add to the medicine prices.
- up to
The Department of Pharmaceuticals says the maximum retail prices of 526 brands fell by up to 90 percent after that pilot.
By an amount that could be as much as 90 percent, but not more.
- revised prices
Its effect will depend on the existing mark-up for each medicine, and on whether the lower revised prices reach patients through pharmacies and hospitals.
Prices that have been changed, in this case lowered.
- maintain
The order also requires companies to maintain current production and supply levels.
Keep production and supply at their current levels.
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Sources
- RechercheThe policy builds on a 2019 pilot that capped trade margins on 42 cancer drugs at 30%; the release says MRPs for 526 brands were reduced by up to 90% after that exercise.
- RechercheThe drugs are non-scheduled, meaning they are outside the National List of Essential Medicines; the government does not set a ceiling price for them.