The Indian government is implementing measures to improve the affordability and accessibility of cancer drugs. These efforts involve price regulation, tax benefits, support for domestic manufacturing, and financial assistance for patients. A press release on these measures was issued on February 7, 2025.
Price Regulation
The National Pharmaceutical Pricing Authority (NPPA) regulates drug prices under the Drugs (Prices Control) Order, 2013 (DPCO, 2013), focusing on drugs listed in Schedule-I (which includes the National List of Essential Medicines (NLEM) 2022).
Manufacturers of scheduled medicines must sell within the NPPA-fixed ceiling price. The NPPA also sets retail prices for new drugs. For non-scheduled drugs, manufacturers can set their own maximum retail price (MRP) but cannot increase it by more than 10% in 12 months. The NPPA can also fix ceiling prices for non-scheduled drugs in the public interest.
NLEM 2022 includes 63 anti-cancer drugs, including immunosuppressants and palliative care medicines.
The NPPA has fixed ceiling prices for 131 scheduled anti-cancer formulations under NLEM, including 111 re-fixed under NLEM 2022. This re-fixation has led to a 21% price reduction on average and annual savings of approximately ₹294.34 crore for patients.
The NPPA has fixed retail prices for 28 anti-cancer formulations for applicant companies under DPCO 2013.
A 30% trade margin cap has been placed on 42 non-scheduled anti-cancer medicines in the public interest. This has reduced the MRP of 526 brands by an average of 50%, saving patients around ₹984 crore annually.
Tax Benefits
The government reduced customs duty to nil and GST rates from 12% to 5% for three anti-cancer drugs in FY 2024-25, with NPPA directing companies to pass on the benefit to consumers.
Further customs duty exemptions/concessions on identified anti-cancer medicines have been announced in the FY 2025-26 budget.
Domestic Manufacturing
The Department of Pharmaceuticals’ Production Linked Incentive (PLI) Scheme for Pharmaceuticals, with a ₹15,000 crore outlay until FY 2027-28, supports domestic drug manufacturing. 54 anti-cancer drugs are being manufactured under this scheme.
Patient Support Programs
Ayushman Bharat PM-JAY provides health insurance coverage of ₹5 lakh per family per year for secondary and tertiary care hospitalization, including drugs and diagnostics.
Pradhan Mantri Bhartiya Janaushadhi Pariyojana offers quality medicines at Jan Aushadhi Kendras at significantly lower prices than branded medicines.
The AMRIT initiative provides discounted medicines (up to 50%) for cancer, cardiovascular, and other diseases at AMRIT Pharmacy stores in some hospitals.
Financial assistance is available to poor patients with life-threatening diseases, including cancer, through the Rashtriya Arogya Nidhi (RAN) and the Health Minister’s Discretionary Grant (HMDG). The Health Minister’s Cancer Patient Fund (under RAN) provides up to ₹15 lakh, and HMDG provides up to ₹1.25 lakh.
Overall Impact
These combined measures aim to make cancer treatment more accessible and affordable for all segments of the population. The government’s multi-pronged strategy addresses pricing, manufacturing, and financial barriers, demonstrating a commitment to improving healthcare outcomes for cancer patients.
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