Cancer drug margin cap debate splits over hospital costs

India has capped trade margins at 30% on 137 cancer medicines, including patented drugs such as pembrolizumab, ribociclib and abemaciclib, following a Supreme Court push against excessive mark-ups. The government told the court an expert committee will identify the medicines to be covered, with the National Pharmaceutical Pricing Authority to examine recommendations. The court has also asked why similar scrutiny should not extend to other medicines and medical products.

Indian Express, in an opinion piece by a former health secretary, calls the move a welcome step but argues a comprehensive evidence-based examination of margins across all medicines and medical devices is needed, warning that fragmented regulation can shift market distortions. Deccan Herald, in an opinion piece by a senior cardiologist and hospital MD, cautions that extending a uniform margin cap without considering hospital cross-subsidisation, government scheme economics, and legitimate infrastructure costs could hit poorer patients and discourage private investment. Both pieces call for transparent costing studies before wider regulation.