Key facts
- A 30% trade margin cap will be imposed on 137 cancer drugs.
- The measure is expected to reduce medicine prices by up to 70%.
- Cancer drug costs in India can range from 38,000 to 380,000 rupees.
- Spending on healthcare pushes about 55 million Indians a year below the poverty line.
- India records about 1.56 million new cancer cases annually.
The Indian government will lower the prices of 137 cancer drugs starting next month, following a Supreme Court ruling that characterized excessive mark-ups by hospitals and retailers as "extortion." This move aims to alleviate the financial burden on poorer patients who struggle to afford life-saving treatments, with some facing debt or selling assets. The decision was prompted by a petition from Sarojam Radhakrishnan, a former bank employee whose breast cancer treatment costs were prohibitive. Justices Vikram Nath and Sandeep Mehta of the Supreme Court highlighted extreme mark-ups, noting a drug costing 2,700 rupees was sold for 27,000 rupees. Analysis by the National Pharmaceutical Pricing Authority showed average trade mark-ups of 170%, with some exceeding 700%. The government is now imposing a 30% trade margin cap on these additional drugs, a measure expected to reduce prices by up to 70% and save patients an estimated 2,500 crore rupees annually. The Supreme Court has also questioned why the price cap is limited to cancer drugs and requested a response from the government by October 27. Radhakrishnan passed away in September 2022 before her case was resolved.