The Centre has decided to cap trade margins at 30 per cent of the MRP for all non-scheduled anti-cancer drugs, covering branded and generic, domestic and imported, patented and non-patented medicines, to reduce the financial burden on patients.The decision, which is expected to be implemented later this month, will bring down prices of 110 anti-cancer drugs, including 35 patented medicines.“To ensure the continued availability of these life-saving drugs, manufacturers will be required to maintain current production levels. Further, manufacturers’ selling prices or revenue will not be affected as the cap applies only to the trade margin,” sources said.The sources said the proposed trade margin rationalisation was expected to result in a reduction of up to 70 per cent in MRPs. “The measure is expected to result in annual savings of Rs 2,500 crore and reduce out-of-pocket expenditure for cancer patients. It will also address the issue of profiteering at the cost of patients and correct market distortions, thereby ensuring fair prices,” the sources said.Official estimates suggest that approximately 60 persons per one lakh population are affected by cancer. The treatment for cancer is associated with high financial burden and significant out-of-pocket expenditure (about 75 per cent of the total expenditure). The market data indicates that the anti-cancer medicines market comprises approximately 225 drugs and 500 formulations, with an annual turnover of around Rs 12,500 crore. Scheduled anti-cancer medicines account for approximately Rs 2,250 crore.An analysis of the market data by the National Pharmaceutical Pricing Authority (NPPA) revealed that the average trade mark-up on the non-scheduled anti-cancer drugs is approximately 170 per cent, with mark-ups reaching up to 700 per cent in certain cases.Significant price difference is also observed between the prices charged through retail, hospital and online pharmacies. Sources said serious concerns had also been raised by various state authorities (including Maharashtra, Rajasthan and Karnataka), patients and civil society through public platforms regarding excessive pricing of drugs, particularly highlighting the wide disparity between the procurement price and the MRP charged from consumers.In February 2019, the NPPA had capped the trade margin on select 42 non-scheduled anti-cancer drugs on a pilot basis. The exercise led to substantial price reduction of up to 91 per cent on MRP, with annual savings of Rs 984 crore reported for 526 brands.