NPPA directs health ministry to cap cancer drug profit margin to 30 pc: K'taka Minister

Bengaluru, Karnataka Health Minister U T Khader on Saturday said the National Pharmaceutical Pricing Authority has directed the Union Health Ministry to submit a list of the cancer medicines along with details of their profit margins, which are to be restricted to 30 per cent.

Calling it a historic day, Khader said the health department's efforts to address the difficulties faced by patients and their families in accessing medical treatment have begun yielding results.

"The NPPA has directed the health ministry to submit, by October 14, a list of the cancer medicines concerned along with details of their profit margins, which are to be restricted to 30 per cent," Khader said in a press conference.

Terming it an important development, the minister said that until now, medicine packages generally displayed only the maximum retail price , leaving consumers with little information about the actual costs involved.

According to him, the measure would require greater transparency, enabling people to understand the pricing and making it possible to take action against companies charging profit margins above the prescribed limit.

"If a 30 per cent cap is implemented, the prices of several expensive medicines could come down substantially. Some medicines costing ₹3,000 are sold at ₹25,000, while an injection reportedly costing ₹5,000 was being sold at ₹65,000 in another instance," Khader explained.

Cancer treatment often requires multiple injections, sometimes 10 or 12, pushing the overall cost into several lakhs of rupees. Bringing these prices under control would significantly reduce the financial burden on patients, he observed.

"Effective implementation of the proposed measures could reduce out-of-pocket expenditure by around ₹2,500 crore. I am confident that the Union health department will implement the NPPA's directions," the minister said.

Khader said the department will also submit representations to the NPPA board and Centre, urging them to take the matter forward.

He also outlined that the efforts will not be confined to cancer medicines as Karnataka would seek similar regulation of expensive medicines and medical equipment used to treat other serious conditions, including heart disease and kidney ailments.

"Some machines cost ₹3 crore, ₹5 crore, ₹25 crore or even ₹60 crore. Introducing reasonable limits on profit margins could indirectly benefit patients by reducing treatment costs," he pointed out.

The minister explained that hospitals often justify their charges by citing the cost of their equipment, and ordinary patients generally lack the technical knowledge to assess such claims or understand the specifications and actual costs of the equipment.

"We need greater transparency in these matters. Any practice that places an excessive financial burden on the public must be examined, while ensuring that manufacturers are not unfairly pushed into losses and patients are not exploited through excessive profit margins," he noted.

A balanced regulatory framework would benefit people across the country.

Khader said that within a month of assuming office, he wrote to the Union health minister highlighting the exorbitant prices of cancer medicines and requesting measures to bring them under the national drug price regulation framework, which finally started yielding results.

Hailing some media houses which highlighted the exorbitant prices, Khader said officials from Karnataka's Food and Drug Safety Department undertook a detailed exercise to compile a list of around 253 cancer medicines.

They documented not only the medicines but also their landed costs, manufacturing costs and the prices at which they were sold to consumers.

This information was later made public through a press conference, and subsequently a letter was sent to the Union Minister.

"Karnataka Health Department's Food and Drug Safety wing was the first in the country to bring such detailed information before the public. We are now compiling similar information on expensive medicines, cardiac and kidney-related equipment, medical consumables and other high-cost medical devices," Khader said.

He added that the government will examine their manufacturing costs and selling prices and release the information in the coming days.

"We are already working on this exercise," the minister explained.

Khader also pointed out the challenges concerning the regulation of companies that hold licences issued by the Central Government.

If a company engages in irregularities or manufactures counterfeit products, state authorities may not always have the power to take immediate action, he explained.

"I recently encountered this problem while inspecting a major national company. When a violation was detected, I did not have the authority to seal the premises or take the necessary action directly," the minister said.

According to him, the company had a designated officer appointed by the Centre, and we were required to report the matter to that officer.

However, when no action was taken, the state government had to approach the central authorities again, which delayed the enforcement.

"We have examined these issues and called a national-level meeting of Food Safety and Standards Authority of India officials today because the problem affects all states, not just Karnataka," Khader said.

This article was generated from an automated news agency feed without modifications to text.