India has expanded the list of essential anti-cancer drugs that will be subject to price controls, as it seeks to make treatments in the $2.6 billion oncology market more affordable.
Prices of as many as 137 identified non-scheduled anti-cancer drugs will be reduced by up to 70%, according to a statement from the Ministry of Chemicals and Fertilizers on Saturday.
The medicines include immunotherapy drugs used for 20 types of the disease, as well as for breast, prostate, colon, ovary and cervical cancer, the ministry said. The revised prices will become effective from Nov. 9.
Margins on these drugs will be limited to 30% of the maximum retail price, saving cancer patients as much as 25 billion rupees ($263 million) each year, according to an earlier statement.
The move reflects a widening push by Indian authorities to rein in steep markups on medicines and reduce healthcare costs for patients, particularly at hospitals. About 44% of India’s overall healthcare spending is paid out of pocket for those treated, among the largest in major economies.
The latest cuts expand on controls introduced in 2019 on 42 anti-cancer medicines, which reduced prices by up to 90%.
‘Critical’
“With the increasing incidence of cancer in the country, access to affordable, quality-assured medicines is critical,” according to Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance.
The new measures would optimize prices for oncology products, while allowing for adequate margin to channel partners, Jain said.
The cap will apply uniformly across branded and generic formulations, domestic and imported products, and both patented and non-patented medicines.
Indian healthcare stocks plunged in market value last month on concerns that high-margin pharmacy revenue may come under threat after the top court questioned steep markups on lifesaving cancer drugs.
India’s Supreme Court asked the federal government to probe allegations that hospitals make patients purchase medicines from their own or designated pharmacies, especially when the drugs carry a steep margin, the Press Trust of India reported. A markup of as much as 10 times on cancer drugs is “carnage,” PTI quoted the court as saying, asking whether there should be a uniform 16% margin on all medicines.
Nomura estimates average drug prices in India will fall by about 50%, with the near-term impact likely to be more pronounced for companies with a high oncology exposure, it said in an Oct. 9 note.
The scrutiny could affect large private hospitals, where medicines and ancillary services form a key component of revenues. HealthCare Global Enterprises Ltd. derives 72% of its revenue from oncology, while Max Healthcare Institute Ltd. gets about 24% and Apollo Hospitals Enterprise Ltd. and Fortis Healthcare Ltd. about 16%.
–With assistance from Ranjani Raghavan.
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