India caps prices of 137 cancer drugs after court case
India will cut prices on 137 cancer drugs from next month under a 30% trade margin cap, after Supreme Court criticism of mark-ups and a patient's petition.
The story in focus
India's government will cut prices on 137 cancer drugs from next month by extending a 30% trade margin cap, The Guardian reported. The move followed a Supreme Court case brought by Sarojam Radhakrishnan, a retired bank clerk who died in 2022 while her petition was pending.
- The 30% trade margin cap will apply to 137 cancer drugs from next month.
- National Pharmaceutical Pricing Authority analysis found average trade mark-ups of 170%, with some above 700%.
- The Department of Pharmaceuticals said prices could fall by up to 70%, saving an estimated 2,500 crore rupees annually.
- Justices Vikram Nath and Sandeep Mehta called mark-ups on cancer medicines carnage and extortion at a 29 September hearing.
- The court asked the government to explain by 27 October why the cap should not cover all non-patented drugs.
Court case and findings
The Guardian reported that the case originated with Sarojam Radhakrishnan, a former bank employee in Kerala diagnosed with breast cancer in 2021. Prescribed targeted treatments costing more than 63,000 rupees a month, she petitioned the Kerala high court in 2022 seeking government intervention on prices. She died in September 2022 while the case was pending. When it reached the Supreme Court, justices Vikram Nath and Sandeep Mehta examined mark-ups by hospitals and retailers. At a hearing on 29 September, the judges noted a drug supplied to hospitals at 2,700 rupees carrying a marked-up price of 27,000 rupees, and described the situation as carnage and extortion.
Analysis by the National Pharmaceutical Pricing Authority found trade mark-ups on some cancer drugs averaging 170%, with extreme examples exceeding 700%.
The pricing measure
A 30% trade margin cap has applied to 42 drugs for some years, but many others were excluded. The Department of Pharmaceuticals extended the cap to 137 more drugs. In a statement, the department said the measure is expected to reduce medicine prices by up to 70% and help cancer patients save an estimated 2,500 crore rupees (£199m) annually, reducing out-of-pocket spending.
The Guardian reported that India records about 1.56 million new cancer cases annually, up from 1.39 million in 2020, and that studies by the Public Health Foundation of India show healthcare spending pushes about 55 million Indians a year below the poverty line.
Response and next steps
Dr Ravi Kannan, a surgical oncologist and director of the Cachar cancer hospital and research centre in Silchar, Assam, told The Guardian that families often begin treatment but cannot sustain the cost, and called the decision a welcome step if more patients can access needed drugs.
Jyotsna Singh, co-convener of the Working Group on Access to Medicines and Treatments, said a total overhaul of the healthcare system was needed, from manufacturing to point of sale, and suggested companies and hospitals might seek legal loopholes or raise charges on other items.
The Supreme Court has asked the government to respond by 27 October on why the cap should not apply to all non-patented drugs.
Which drugs will become cheaper and by how much?
From next month, 137 cancer drugs will fall under a 30% trade margin cap. The Department of Pharmaceuticals said prices could drop by up to 70%, with estimated annual patient savings of 2,500 crore rupees.
Sources & further reading
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