Centre tells Supreme Court trade margins of all anti-cancer drugs to be regulated

The Centre has told the Supreme Court that trade margins on all anti-cancer drugs will be regulated, with an expert committee set to recommend the list of medicines covered within 15 days.

In Short

• The Centre caps trade margins on anti-cancer drugs at 30% under its latest pricing decision
• An expert committee will recommend the list of medicines covered by the regulation
• The Supreme Court adjourns the cancer drug pricing case to October 27

The Centre has decided to regulate trade margins on anti-cancer drugs, a move aimed at controlling cancer drug prices and improving access to treatment. The decision was considered at the National Pharmaceutical Pricing Authority’s (NPPA) 151st meeting on October 8, 2026. An expert committee has been set up to recommend the list of cancer medicines that will come under the price regulation, with its report due within 15 days. The government will notify the approved list, which may be updated periodically to cover additional medicines as market conditions and public health needs change. The development comes as the Centre files a detailed affidavit in the Supreme Court in the cancer drug pricing case.

30% TRADE MARGIN CAP AND THE 2019 PILOT

The Health Ministry told the Supreme Court that a 30% trade margin cap has applied to 42 selected non-scheduled anti-cancer medicines since 2019. Under this mechanism, the maximum retail price (MRP) cannot exceed the permitted margin over the price to the retailer.

The Centre said the NPPA introduced the pilot through a notification dated February 27, 2019. It was cautious about the impact of price intervention on the availability of medicines and access to treatment.

Since then, the government has held multiple rounds of consultations with stakeholders. Micro, small and medium enterprises (MSMEs) and generic drug manufacturers have raised concerns about the Trade Margin Rationalisation (TMR) system, including drug production costs, sales and supply to remote areas.

WHY THE DRUG LIST MATTERS

The government said cancer medicines require special consideration because delays in their availability can affect treatment. It therefore held extensive consultations to avoid shortages of these critical drugs.

The list of medicines covered by the new regulation will be based on government approval for cancer treatment in India. It may be revised periodically as market developments and public health considerations change.

HOW INDIA REGULATES DRUG PRICES

The Centre also explained how drug pricing works under the existing framework. The NPPA regulates scheduled medicines through ceiling prices, while other medicines may be subject to different pricing mechanisms under applicable rules.

The National List of Essential Medicines was last notified in 2022 and comprises 388 drugs and more than 900 formulations.

Trade margins can vary depending on the product, market conditions and business practices. The government said it considered these factors while assessing the implications of regulating cancer drug prices.

SUPREME COURT HEARING ON OCTOBER 27

The Centre has filed a detailed affidavit in the Supreme Court in the cancer drug pricing case. The hearing has been adjourned to October 27 at the request of the Additional Solicitor General (ASG).

- Ends