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Sharp Reduction in Cancer Drug Prices Raises Questions Over Past Overpricing; JSA India Demands Comprehensive Price Control
Access to life-saving cancer treatment must be determined by medical need rather than a patient’s financial capacity.
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New Delhi/Bhopal/Indore/Bhubaneswar: The sharp reduction in the maximum retail prices (MRPs) of several anti-cancer medicines has raised serious questions about the pricing practices of pharmaceutical companies and the affordability of life-saving treatments in India, according to Jan Swasthya Abhiyan India (JSA India).
In a press note issued on October 28, JSA India expressed concern over the revised MRP list of anti-cancer medicines published by the National Pharmaceutical Pricing Authority (NPPA) on October 27, 2026. The organisation said the substantial price reductions exposed the extent of excessive pricing that patients may have faced over the years.
PalbociclibPalbociclibAn oral medication used in combination with an aromatase inhibitor or fulvestrant for the treatment of hormone receptor-positive, HER2-negative advanced or metastatic breast cancer. Price Falls from ₹40,421 to ₹2,720
Citing examples from the revised price list, JSA India pointed out that the reported MRP of one brand of palbociclib dropped from approximately ₹40,421 to ₹2,720 per pack. Similarly, the price of thiotepa declined from around ₹80,072 to ₹7,150 per vial.
According to the organisation, such steep reductions raise questions about pharmaceutical companies’ pricing practices, particularly those of major Indian manufacturers of generic cancer medicines. It alleged that companies had reportedly offered substantial trade margins while patients continued to pay unaffordable prices for essential cancer treatments.
Patented Cancer Medicines Remain Expensive
JSA India also highlighted that several patented cancer medicines continue to be priced exorbitantly despite the revised MRPs.
The organisation argued that the Trade Margin Rationalisation (TMR) policy has failed to ensure affordable access to cancer medicines. It further expressed concern that medicines supplied free of cost under Patient Assistance Programmes are excluded from the policy’s calculations, limiting its potential benefits for patients.
JSA Questions 42.8% Trade Margin Formula
Raising concerns over the existing pricing framework, JSA India said that allowing a 42.8 per cent markup over the Price to Stockist (PTS) effectively legitimises excessive trade margins.
It noted that medicine distribution often involves only one or two intermediaries, while some companies directly supply medicines to hospitals. In such circumstances, the organisation argued that a substantially lower markup, comparable to the 16 per cent margin applicable to scheduled formulations under the Drug Price Control Order (DPCO) framework, could provide greater relief to patients.
TRADE MARGIN ANALYSIS
Trade Margin Comparison: TMR Policy vs. DPCO Framework
TMR Policy Markup (over PTS) 42.8%
DPCO Framework (Scheduled Formulations) 16%
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Calls for Permanent Price Regulation and NPPA Monitoring
JSA India maintained that a one-time reduction in MRPs would not be sufficient to address the problem of excessive medicine pricing.
It called for permanent and enforceable trade margin caps, regular monitoring and independent verification by the NPPA to prevent excessive pricing from continuing or re-emerging.
The organisation also stressed the need to strengthen the collection and maintenance of medicine price data across supply chains and distribution channels. It said pharmaceutical companies should not be allowed to independently calculate and self-report revised MRPs without adequate verification by the regulatory authority.
Five Key Demands of JSA India
To ensure affordable access to life-saving medicines, Jan Swasthya Abhiyan India has put forward the following demands:
- Comprehensive price regulation: Introduce cost-based price control covering all essential medicines, including cancer drugs.
- Permanent trade margin caps: Establish enforceable limits on trade margins across all distribution channels, backed by effective NPPA monitoring and action against overcharging.
- Transparent pricing information: Ensure transparency in medicine pricing and independent verification of MRPs and supply-chain margins.
- Scrutiny of assistance programmes: Conduct full scrutiny of patient assistance programmes, free medicine supplies and discounts to ensure that pricing policies genuinely benefit patients.
- Strengthening public healthcare: Expand and strengthen public cancer-care services, including affordable diagnostic facilities and treatment.
‘Cancer Treatment Must Depend on Medical Need, Not Ability to Pay’
Emphasising the need for stronger regulatory intervention, JSA India stated that cost-based price control could further reduce medicine prices and curb excessive profiteering.
The organisation maintained that controlling trade margins alone would not be sufficient to ensure affordability. It called for a comprehensive pricing framework to guarantee that access to life-saving cancer treatment is determined by medical need rather than a patient’s financial capacity.
The press note was issued by Amitava Gua, Amulya Nidhi, Gouranga Mohpatra and Mahajabin Bhat on behalf of Jan Swasthya Abhiyan India (JSA India).
Disclaimer:The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the official policy or position of The Rift.
