WHO PROFITS FROM CANCER?” | SHANMUGAM IAS ACADEMY | Mr V. GOKULA KRISHNAN

Key facts at a glance

The cap: Trade margin capped at 30%, applied at the first point of sale

Implemented by: National Pharmaceutical Pricing Authority (NPPA)

List prepared by: An expert committee under the Directorate General of Health Services (DGHS), which will update it periodically

Why: Average trade mark-ups of about 170% on these drugs, and up to 700% in some cases

Earlier step (2019): Margins on 42 anti-cancer drugs were capped at 30%, cutting the MRPs of 526 brands by up to 90%

Check prices: Pharma Sahi Daam app and the NPPA website

What is a “trade margin”, and how do huge mark-ups happen between factory and patient?

Scheduled vs non-scheduled drugs: NLEM, ceiling prices, and the 10% annual MRP-increase rule

Paragraph 19 of DPCO 2013: the “extraordinary powers” clause

The Supreme Court’s role: “broad daylight dacoity”, and why only cancer drugs?

Who gains: patients, hospitals, and Ayushman Bharat beneficiaries