Most anti-cancer drugs costly despite price cap, says AIDAN

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The All India Drug Action Network (AIDAN) said that Despite price capping of 42 anti-cancer drugs by the government recently, “most cancer medicines still remain unaffordable to most Indians because there is no curb on profiteering by pharma manufacturers.

Key Facts:

  • All India Drug Action Network (AIDAN) is a non-government organisation.
  • It states that the “formula for price capping itself was developed by the Standing Committee for Affordable Medicines and Health Products, chaired by Niti Aayog, which is not equipped with the technical expertise housed at the National Pharmaceutical Pricing Authority (NPPA) nor the data for analysing and designing a methodology to cap margins. It was unfortunately accepted by the NPPA without further due diligence.”
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  • The formula does not disturb the margins of companies before the medicines reach the stockist.
  •  Capping of margins should begin from the cost price plus manufacturer’s margin, or the landed cost, whichever is applicable.
  • There are wide variations in the prices of different brands of the same medicine.
  •  A Uniform ceiling price caps for life-saving medicines are much more effective.
  • The wide variation in prices and the extremely high prices of some medicines, graded margin capping should have been implemented.

Sources:The Hindu


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