India’s drug pricing authority has capped distribution and retail margins on 137 cancer medicines. The ceiling is 30 per cent of maximum retail prices before tax, with revised prices expected from 9 November. Hospitals buying directly from manufacturers are also covered. Medicines already sold below the newly calculated ceiling can retain their lower prices.
India’s National Pharmaceutical Pricing Authority (NPPA) capped distribution and retail margins on 137 cancer medicines. Revised prices are expected from 9 November. The ceiling equals 30 per cent of the maximum retail price excluding goods and services tax. It applies to amounts added along the supply chain between manufacturer and patient, with the authority aiming to reduce treatment costs.[1], [2]
The ceiling corresponds to a maximum mark-up of 42.86 per cent over the manufacturer’s price to the distributor. An existing maximum price above the newly calculated ceiling must be reduced, while a lower existing price can remain. The calculation generally uses March 2026 sales, dividing net sales revenue by units sold after excluding government purchases. Where that month had no sales, April 2025–March 2026 data apply.[1]
Hospitals receiving medicines directly from manufacturers also count as distributors. Coverage includes patented products and the listed medicines across strengths, forms and combinations. Manufacturers must report updated prices to the authority and state drug controllers within seven days of the order’s publication in the Official Gazette.[1]
Reporting is required even when a price does not change, and updated lists must be displayed at sales outlets. Reducing production requires permission; stopping manufacture or imports requires at least six months’ notice. The authority can seek recovery of amounts charged above permitted prices.[1]
