Government Mandates Price Reductions on Three Anticancer Medications Following BCD and GST Adjustments
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New Delhi, Dec 6 (NationPress) Manufacturers have initiated reductions in the maximum retail price (MRP) for three anticancer medications — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab — following government instructions to ensure that consumers reap the benefits, as conveyed to Parliament on Friday.
The government had issued notifications to eliminate basic customs duty (BCD) for these three medications/formulations, in addition to reducing the GST rates on these anticancer treatments from 12% to 5%, as stated by Union Minister of State for Chemicals and Fertilisers, Anupriya Patel, in a written response to the Lok Sabha.
She mentioned that, in accordance with these notifications, manufacturers have adjusted the MRP for these drugs and submitted the updated information to the National Pharmaceutical Pricing Authority (NPPA).
The NPPA has issued a directive mandating companies to reduce the MRP of these drugs due to the lowered GST rates and exemption from customs duties, ensuring that consumers benefit from these tax reductions and that companies report any changes in pricing.
For instance, AstraZeneca Pharma India Ltd has decreased the MRP per vial for several formulations.
According to a letter from the company dated 19.11.2024, the downward price adjustment due to BCD being set to nil will take effect when stocks benefiting from this relief are released for commercial sales, as reported by the Ministry of Chemicals and Fertilisers.
In the Union Budget, the government exempted customs duty on three cancer drugs to alleviate the financial burden on cancer patients and to enhance accessibility. Additionally, the GST rate was reduced from 12% to 5% on these three cancer medications. While Trastuzumab Deruxtecan is used for breast cancer, Osimertinib is utilized for lung cancer, and Durvalumab is effective for both lung cancer and biliary tract cancer.
Cancer incidence is significantly increasing in India. A recent study published in The Lancet indicated that India recorded approximately 1.2 million new cancer cases and 930,000 deaths in 2019, marking it as the second-highest contributor to the disease burden in Asia.
