Drug pricing regulator NPPA has capped trade margins on 137 non-scheduled anti-cancer formulations at 30%, a move expected to cut retail prices by up to 70% depending on the existing price structure.
New Delhi, October 18 — The National Pharmaceutical Pricing Authority (NPPA) has capped trade margins on 137 non-scheduled anti-cancer formulations at 30%, in a major move aimed at reducing the cost of cancer treatment.
The revised pricing framework will take effect from November 9, 2026.
According to the Ministry of Chemicals and Fertilisers, the measure could reduce the retail prices of these critical cancer medicines by up to 70%, depending on their current pricing structure.
NPPA has implemented the Trade Margin Rationalisation (TMR) mechanism under Paragraph 19 of the Drugs (Prices Control) Order, 2013.
The action follows recommendations from an expert committee constituted under the Directorate General of Health Services, comprising oncologists, medical specialists, hospital experts and government officials.
The committee recommended 137 formulations for margin rationalisation, and the list is expected to be reviewed and updated periodically.
The latest decision builds on NPPA’s earlier TMR initiative launched in 2019.
Under that pilot programme, trade margins on 42 anti-cancer medicines were capped at 30%, leading to reductions of up to 90% in maximum retail prices across 526 brands.
The new measure significantly expands the number of cancer medicines covered under the pricing framework.
Pharmaceutical companies have been directed to publish revised price lists on their official websites and circulate them among retailers and hospitals.
From November 9, retailers and hospitals will be required to charge the reduced prices and display revised rates at their pharmacies.
Hospitals that directly procure cancer medicines will also have to prominently display the new prices on their websites and ensure that the revised rates are implemented.
Consumers will be able to verify updated prices through the NPPA website and the Pharma Sahi Daam mobile app.
State drug controllers have also been instructed to ensure compliance across manufacturers, dealers, retailers, hospitals and medical institutions.
NPPA said the objective is to curb excessive margins in distribution and retail channels without affecting legitimate manufacturing revenues or creating artificial shortages.
Drugmakers have therefore been instructed to maintain existing production and supply levels for the notified formulations so that cancer patients continue to receive medicines without disruption.
