India Lowers Cancer Drug Prices After Supreme Court Intervention
Supreme Court Demands Explanation on Drug Mark-Ups
Supreme court judges called hospital and retailer mark-ups on cancer drugs “carnage” and “extortion,” prompting the Indian government to slash prices on 137 cancer drugs starting next month. The intervention follows mounting financial strain that has forced vulnerable patients to abandon treatment, sell land, or fall into debt.
Key Clinical Takeaways:
- The Indian government has capped trade margins on 137 additional cancer medications, bringing expected price reductions of up to 70% for patients.
- The regulatory action stems from a supreme court challenge initiated by a retired bank clerk, Sarojam Radhakrishnan, who faced prohibitive monthly treatment costs.
- Judges have demanded that the government explain by October 27 why strict price caps should apply exclusively to cancer drugs rather than the entire market of non-patented medicines.
The Legal Battle Led by Sarojam Radhakrishnan
Sarojam Radhakrishnan, a former bank employee in Kerala, received a breast cancer diagnosis in 2021. Prescribed life-saving targeted treatments exceeding 63,000 rupees monthly—roughly £500—she realized the immense financial barrier facing ordinary households. In 2022, she filed a petition at the Kerala high court demanding government intervention to lower the costs. Radhakrishnan died in September 2022 while her case remained pending, but the litigation ultimately reached the supreme court.
During a hearing on September 29, justices Vikram Nath and Sandeep Mehta highlighted severe disparities in the medical supply chain. They noted that a life-saving cancer drug supplied to hospitals at 2,700 rupees carried a vastly marked-up price of 27,000 rupees. Analysis by the National Pharmaceutical Pricing Authority revealed trade mark-ups on some cancer drugs averaging 170%, with extreme instances exceeding 700%.
Financial Devastation Among Cancer Patients
While a 30% trade margin cap had governed 42 drugs for several years, a vast array of other treatments remained exempt. Krishan Kalra, a former member of the council of the Rajiv Gandhi Cancer Institute and Research Centre, observed that low-income workers routinely avoid diagnostic camps out of financial dread. Studies by the Public Health Foundation of India show that healthcare spending pushes approximately 55 million Indians below the poverty line annually.
For families battling cancer, the cost of treatment can be as overwhelming as the diagnosis itself.From November 9, India will cap trade margins at 30% on 137 anti-cancer medicines, with their maximum retail prices expected to fall by up to 70%.The decision by the National… pic.twitter.com/EzTQRFlUoo
Comprehensive health insurance remains largely out of reach for most citizens. The national scheme, Ayushman Bharat, provides up to 500,000 rupees in annual family coverage, which matches the cost of just a single dose of the breast cancer drug Kadcyla, whereas patients may need up to 14 doses. Dr Ravi Kannan, surgical oncologist and director of Cachar cancer hospital and research centre in Silchar, Assam, noted that families frequently start treatment only to abandon chemotherapy or radiation because they cannot sustain the expenses.
Price Caps on 137 Drugs Could Save Cancer Patients
Prompted by the supreme court findings, the Department of Pharmaceuticals announced that capping 137 additional drugs will reduce prices by up to 70%. The policy is projected to save cancer patients 2,500 crore rupees, equivalent to £199m, in out-of-pocket expenses annually. Jyotsna Singh, co-convener of the Working Group on Access to Medicines and Treatments, emphasized that lowering prices requires a total overhaul and transparent regulation spanning manufacturing to point of sale, noting that hospitals might attempt to offset regulated drug prices by increasing fees on other items.
The supreme court has directed government lawyers to justify why price caps should remain restricted to cancer drugs instead of extending across all non-patented medications, setting a deadline of October 27 for the official response.
Disclaimer: The information provided in this article is for educational and scientific communication purposes only and does not constitute medical advice. Always consult with a qualified healthcare provider regarding any medical condition, diagnosis, or treatment plan.
The Government of India has announced a reduction in the prices of 137 identified anti-cancer drugs by up to 70%, effective 9 November 2026, to improve the affordability of cancer treatment.In this video, Dr Mayank Singh, Additional Professor, Department of Medical Oncology… pic.twitter.com/jaj57a97RJ