Karnataka has formally requested the Centre to extend price safeguards to expensive medications used for cardiac and kidney diseases, following the government's approval of a 30% trade-margin cap for non-scheduled anti-cancer drugs. According to reports from NDTV Profit, the state government welcomed the new measure on Saturday and stated that similar safeguards should cover other essential drugs to make treatment more affordable for patients. The demand comes after the Centre decided to cap trade margins on non-scheduled anti-cancer medicines at 30% of their maximum retail price (MRP). The National Pharmaceutical Pricing Authority (NPPA) has approved the 30% trade-margin cap in principle, though the final list of medicines that will come under the measure is yet to be determined.
The Centre expects its proposed 30% trade margin cap to cut cancer drug prices by up to 70% and save patients ₹2,500 crore annually, with an expert committee set to recommend the medicines covered within 10 to 15 days. As reported by NDTV Profit, the Department of Pharmaceuticals filed an affidavit on October 12 outlining how the government plans to implement the measure. Trade margins on non-scheduled anti-cancer medicines can range from 170% to 700% or more, according to the Centre's submission to the Supreme Court. The proposed list will include all drugs approved for cancer treatment, except those which are inexpensive, with the government reserving the right to revise the list as market conditions change or public health considerations arise.
The state's appeal comes after the Supreme Court questioned why the MRP of essential medicines, including cancer drugs, could not be restricted to 16% above the price to retailer, as applicable to scheduled medicines under the Drugs (Prices Control) Order, 2013. As reported by NDTV Profit, Karnataka is now seeking broader central intervention so that patients requiring costly cardiac, kidney and other life-saving treatments can also benefit from stronger price safeguards, expanding beyond the current anti-cancer drug coverage. The new measure applies to non-scheduled anti-cancer medicines, which are not covered by the existing list of drugs with government-fixed price ceilings. The government has pointed to its 2019 intervention as a precedent, where the NPPA capped trade margins at 30% for 42 selected non-scheduled anti-cancer medicines, resulting in ₹984 crore annual savings across 526 brands.
The Centre's affidavit also flags high margins on hospital consumables, which it says can range from 100% to 1,000% or more, requiring a separate approach because their costs and uses vary significantly. The Department of Pharmaceuticals said it had consulted stakeholders on trade-margin regulation since 2022, recording concerns from industry associations about possible effects on employment, distribution networks and medicine availability in remote areas. The government said it had considered these concerns before deciding to proceed, adding that it was examining other instances of high margins and possible malpractice, with any intervention to be considered in consultation with stakeholders. The Centre also undertook to comply with any further directions issued by the Supreme Court.
