Centre Sets 30% Trade Margin Cap on Cancer Drugs

The Central government has informed the Supreme Court that trade margins on anti-cancer medicines will be restricted to 30% of their maximum retail price (MRP). The court, however, has called for a wider examination of medicine pricing across the pharmaceutical industry.

Solicitor General Tushar Mehta told a bench of Justices Vikram Nath and Sandeep Mehta that the government would notify the list of cancer medicines covered by the new restriction. The list may be revised periodically to include additional drugs, while low-cost medicines could be excluded.

The Supreme Court expressed concern over the large difference between the prices at which medicines are supplied to retailers and their printed MRPs, noting the financial burden this places on patients.

The bench also questioned whether the proposed cap would address excessive margins on other medicines and medical devices. Citing an example, the court pointed out that an Indian-made cardiac stent supplied to retailers for around ₹5,000 carried an MRP of ₹25,000.

Mehta said cardiac stents were already covered under existing price-control measures.

The Supreme Court has scheduled the next hearing in the matter for October 27.