Cancer and Rare Disease Medicines to Become Cheaper in India? Govt May Cut Down Margins Earned by Stockist and Retailer by 25–30 Per Cent

In a piece of recent good news, medicines for cancer and other rare diseases could become cheaper. In a great move to cut down the overcharging on important medicines, the Center has reportedly set to cap trade margins on the drugs that are charged by retailers and stockists, as per reports by TOI. The centre may cut down the margins charged by the stockists and retailers by upto 25-30 per cent for about 50 cancer medicines and also for medicines for rare diseases. These medicines are currently exempted from price regulations, official sources said to TOI. The Directorate General of Health Services (DGHS) listed down the 50 drugs that needed a check and the list included 39 anti-cancer medicines and orphan drugs. Such orphan drugs are used in the treatment of rare diseases. The decision was a result of a high-level meeting with PMO. China to Cut Tariffs on Indian Medicines, Cancer Drugs. 

“The PMO had asked the health ministry to prepare a list of non-schedule anticancer and orphan drugs which are currently outside price control but require intervention to make them affordable. The list has been submitted and order in this regard will be issued very soon," TOI reported. The report by the esteemed media postal also said that the Para 19 of the Drugs Price Control Order (DPCO) will be used by Para 19 to fix the trade margin under "extraordinary circumstances"

Cutting down the margins earned by the retailers and stockists will positively impact the affordability of cancer medicines and other medicines for rare diseases. While these medicines will become cheaper, excessive profits made by wholesalers, distributors and chemists will also be put to check.

(The above story first appeared on LatestLY on Jan 23, 2019 10:13 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).