Government caps trade margins on 137 cancer medicines at 30%; lower prices from November 9

The National Pharmaceutical Pricing Authority (NPPA) has capped the trade margin on 137 anti-cancer medicines at 30 per cent, in a move aimed at bringing down the cost of cancer treatment. Revised retail prices are to take effect from November 9, 2026.

The list includes several widely used and expensive therapies, among them pembrolizumab, durvalumab, osimertinib, bevacizumab, denosumab and pegfilgrastim. The cap applies to any formulation containing a listed drug, whether on its own or in combination, regardless of strength, dosage form or route of administration, and it also covers patented products, according to reports on the order.

How the cap works

The trade margin is the difference between the price at which a manufacturer sells to stockists or distributors and the maximum retail price (MRP) paid by patients. Under the new order, issued under paragraph 19 of the Drugs (Prices Control) Order, 2013, which lets the government act in the public interest, companies must work out a revised MRP using their March 2026 price to stockists, with the margin limited to 30 per cent plus GST.

Products already priced below the new ceiling keep their existing MRP, while those above it must be cut. Reports on the order say retail prices of some medicines could fall by up to 70 per cent, depending on how wide their existing margins are.

Manufacturers have seven days to report revised prices to the NPPA and state drug controllers and must send updated price lists to dealers and retailers. Hospitals, pharmacies and other medical institutions are required to display and charge the new prices from November 9, with state drug controllers responsible for enforcement. Companies must also keep up existing production levels and need prior approval to cut output, a safeguard against shortages.

Building on a 2019 pilot

The step expands an earlier trial in 2019, when a similar 30 per cent margin cap was applied to 42 non-scheduled cancer drugs. The government has said that exercise led to price cuts of up to 90 per cent across 526 brands. The list for the new round was drawn up on the advice of an expert committee under the Directorate General of Health Services, and the regulator has said it may be revised over time.

Why it matters

Cancer treatment costs are among the heaviest out-of-pocket health expenses for Indian families, and newer immunotherapy drugs can run into lakhs of rupees per course. Patients can check notified prices on the NPPA website and its Pharma Sahi Daam app once the revised prices are in force.