NPPA caps trade margins on 137 anti-cancer drugs at 30% of MRP
Synopsis
Key Takeaways
The National Pharmaceutical Pricing Authority (NPPA) has capped trade margins on 137 non-scheduled anti-cancer drugs at 30 per cent of the maximum retail price (MRP), a move the regulator says could reduce prices of several cancer medicines by up to 70 per cent and significantly improve affordability for patients across India. The notification was issued on 18 October 2026, with revised prices taking effect from 9 November 2026.
What the Order Covers
The 137 identified non-scheduled anti-cancer drugs span a wide therapeutic range. They include immunotherapy drugs used for treating over 20 types of cancers, Denosumab prescribed to breast and prostate cancer patients, Pegfilgrastim used to prevent neutropenia in cancer patients undergoing chemotherapy, and Bevacizumab, an approved treatment for colon, ovarian, and cervical cancers. Widely used drugs such as Pembrolizumab, Durvalumab, and Osimertinib are also expected to become more accessible under the revised pricing framework.
How the New Prices Will Be Enforced
All manufacturers are required to inform the NPPA of their revised prices within 7 days of publication of the Gazette notification. From 9 November 2026, all retailers and hospitals must charge only the reduced prices and display them prominently in their pharmacies. Hospitals are also mandated to display revised prices on their official websites. Manufacturers must similarly publish updated price lists on their websites and disseminate them widely to retailers and hospitals.
Consumers can verify revised prices through the Pharma Sahi Daam app and the NPPA website.
Background: Building on the 2019 Pilot
This intervention builds on NPPA's 2019 pilot Trade Margin Rationalisation (TMR) exercise, under which trade margins for 42 anti-cancer drugs were capped at 30 per cent. Following that pilot, the MRP of 526 brands of non-scheduled anti-cancer medicines was reduced by up to 90 per cent. The current exercise extends that framework to a significantly larger drug basket, based on a list recommended by the Expert Committee under the Directorate General of Health Services (DGHS).
According to the official statement, the intervention is carried out under the Department of Pharmaceuticals in the Ministry of Chemicals and Fertilizers as part of the regulator's broader Trade Margin Rationalisation (TMR) programme aimed at curbing excessive margins across the pharmaceutical distribution chain.
Impact on Patients and Public Health
Cancer treatment costs in India remain prohibitively high for a large share of households, with out-of-pocket expenditure on oncology medicines pushing many families into financial distress. By rationalising distributor and retailer margins — which can account for a disproportionate share of the final price of non-scheduled drugs — the NPPA aims to ensure that cost savings flow directly to patients rather than intermediaries in the supply chain. The move is also intended to support the broader public-health objective of equitable access to cancer treatment, particularly for patients in tier-2 and tier-3 cities and rural areas.
With this notification, the government signals a continued willingness to intervene on drug pricing in high-burden disease areas, and all eyes will now be on manufacturer compliance rates and retail-level enforcement when the 9 November 2026 deadline arrives.