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New Delhi, February 8, 2025 – In a significant move to make cancer treatment more affordable and accessible, 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 step is aimed at reducing the financial burden on patients and ensuring the availability of essential cancer drugs at regulated prices.
The NPPA, operating under the Department of Pharmaceuticals, is responsible for setting ceiling prices under the provisions of the Drugs (Prices Control) Order, 2013 (DPCO, 2013). Manufacturers of scheduled medicines, whether branded or generic, must adhere to the ceiling price plus applicable Goods and Service Tax (GST) as determined by NPPA. Additionally, NPPA also fixes the retail price of new drugs, ensuring that manufacturers and marketers comply with notified price limits.
Major Measures Taken by NPPA
- Ceiling Price Fixation: NPPA has revised and fixed ceiling prices of 131 scheduled anti-cancer formulations. Of these, 111 formulations were earlier included under NLEM, 2015. The refixation under NLEM, 2022 has led to an average price reduction of 21%, resulting in annual savings of approximately ₹294.34 crore for patients.
- Retail Price Regulation: NPPA has fixed retail prices for 28 anti-cancer formulations manufactured and marketed by applicant companies, ensuring affordability and market regulation.
- Trade Margin Capping: A 30% trade margin cap has been imposed on 42 non-scheduled anti-cancer medicines, leading to an average price reduction of 50% for 526 brands and an estimated annual saving of ₹984 crore for patients.
- Tax Reduction: The government has reduced customs duty to nil and slashed GST rates from 12% to 5% on three essential anti-cancer drugs for the financial year 2024-25. NPPA has also directed companies to reflect these tax benefits in the Maximum Retail Price (MRP) of these medicines.
- Production Incentives: To promote domestic manufacturing, the Department of Pharmaceuticals is implementing the Production Linked Incentive (PLI) Scheme with a financial outlay of ₹15,000 crore until FY 2027-28. Under this scheme, 54 anti-cancer drugs are being produced in India.
Additional Support for Cancer Patients
Apart from direct price regulations, the government has initiated several schemes to support cancer patients:
- Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): This health insurance scheme provides coverage of ₹5 lakh per family per year for hospitalizations, including cancer treatments.
- Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): Under this scheme, quality medicines are offered at significantly lower rates (50%-80% less than branded medicines) through Jan Aushadhi Kendras.
- Affordable Medicines and Reliable Implants for Treatment (AMRIT): This initiative ensures the availability of essential medicines at up to 50% discounted rates through AMRIT pharmacies.
- Financial Assistance Programs: The Rashtriya Arogya Nidhi and Health Minister’s Discretionary Grant (HMDG) provide financial aid to cancer patients from economically weaker sections. Patients can receive up to ₹15 lakh under the Health Minister’s Cancer Patient Fund and up to ₹1.25 lakh under HMDG to cover treatment costs.
This information was shared by Union Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a written reply to a question in the Lok Sabha.
Disclaimer: This article is based on official government statements and reports. For accurate and up-to-date information, readers are advised to refer to NPPA and government notifications.
