DGHS Committee to List Drugs for Margin Cap; NPPA to Issue Notification

A technical committee under the Directorate General of Health Services is set to compile a roster of oncology drugs that will fall under the newly announced margin ceiling. The list will be forwarded to the National Pharmaceutical Pricing Authority, which will issue the final gazette notification.

The policy is designed to apply an indirect price control on non‑scheduled anti‑cancer medicines, a category that previously escaped any ceiling. By limiting the commercial margin to 30 % of the MRP, the government hopes to curb the steep cost escalations that have been documented in the supply chain—from manufacturers to wholesalers, retail pharmacies and e‑commerce platforms.

The NPPA’s recent study highlighted that some cancer drugs experience price inflations of 170 % on average, with outliers reaching over 700 %. The new margin restriction seeks to align end‑user prices more closely with production costs, thereby reducing the financial strain on patients and their families.

The regulation will be applicable to all formulations—branded or generic, domestic or imported, patented or off‑patent—ensuring a level playing field for manufacturers while safeguarding drug availability.