Supreme Court Ruling Forces 70% Price Drop on 137 Indian Cancer Drugs
A new 30% margin cap extends to 137 additional medicines, saving patients an estimated 2.5 trillion rupees annually.
By Chioma Brooks ·
Indian patients will see the cost of 137 cancer drugs drop by as much as 70% starting next month. The government implemented this change after the country’s highest court labeled previous hospital and retailer markups as extortion. This move follows a legal battle initiated by a retired bank clerk who could not afford her prescribed treatment.
Sarojam Radhakrishnan, a former employee in Kerala, was diagnosed with breast cancer in 2021. Her doctors recommended targeted therapies that cost over 63,000 rupees, or roughly 500 pounds, per month. Unable to meet that expense, she petitioned the Kerala high court in 2022 to intervene. When the case reached the Supreme Court, justices Vikram Nath and Sandeep Mehta examined the pricing structures. They noted that a drug supplied to hospitals for 2,700 rupees was sold to patients for 27,000 rupees. The judges described the financial burden as carnage.
Data from the National Pharmaceutical Pricing Authority revealed that trade markups on some cancer medicines averaged 170%, with extreme cases exceeding 700%. A 30% cap on these margins had applied to only 42 drugs for years. The Department of Pharmaceuticals has now extended that cap to 137 additional medications. Officials stated this measure is expected to save patients 2,500 crore rupees, or 199 million pounds, every year.
The financial strain on families is severe. Krishan Kalra, a former council member at the Rajiv Gandhi Cancer Institute, said many people avoid free diagnosis camps in Gurgaon because they fear the cost of treatment. Cancer drugs in India range from 38,000 to 380,000 rupees. Studies indicate that healthcare spending pushes about 55 million Indians below the poverty line annually.
Insurance coverage remains limited. The government’s Ayushman Bharat scheme provides 500,000 rupees in annual coverage per family. That amount equals the cost of just one dose of Kadcyla, a breast cancer drug that may require up to 14 doses. Dr. Ravi Kannan, a surgical oncologist in Assam, called the new ruling a welcome step that may help more patients access necessary drugs.
India recorded approximately 1.56 million new cancer cases in the last year, up from 1.39 million in 2020. Jyotsna Singh, a co-convener of the Working Group on Access to Medicines, said a total overhaul of the system is needed. She warned that hospitals might raise charges elsewhere to offset lower drug prices. The Supreme Court has asked the government to explain why the cap does not apply to all non-patented medicines. The government must respond by October 27. Radhakrishnan died in September 2022 while her case was still pending.
