India caps trade margins on 137 non-scheduled cancer drugs at 30% of MRP

Through a gazette notification dated Oct 17, the National Pharmaceutical Pricing Authority finalized a 30% trade-margin limit—excluding GST—on the maximum retail price of 137 non-scheduled cancer medicines, covering both patented and generic items like Nivolumab, Olaparib, Denosumab and Topotecan. The rule, which takes effect on Nov 9, 2026, does not apply to drugs provided under manufacturers’ Patient Assistance Programmes.

State drug controllers are tasked with monitoring compliance, and manufacturers must post the new price lists online and inform the NPPA within seven days. The authority expects the measure to cut MRPs by up to 70%, generating about Rs 2,500 crore in annual savings while ensuring uninterrupted supply. Non-scheduled drugs currently represent about 82% of India’s pharmaceutical market, and this is the first step in a broader trade-margin rationalisation effort that could later extend to other medicines and medical devices. The move comes as the Supreme Court examines high mark-ups on essential medicines.