Supreme Court Questions Drug Price Gap as India Caps Cancer Medicine Margins

The Supreme Court questioned the huge gap between what medicines cost and what patients pay in September 2026. The court pointed out a case where a cancer drug supplied to a retailer for ₹2,700 carries a maximum retail price of ₹27,000.

New Price Caps

Following this, the National Pharmaceutical Pricing Authority announced a 30% cap on trade margins for 137 anti-cancer drugs on October 17. This rule takes effect from November 9 and could reduce prices substantially for several products. India's first statutory drug price controls started during the 1962 Sino-Indian War under the Defence of India Act, followed by more measures in 1963 and 1966.

Context

India separates medicine licensing under the Central Drugs Standard Control Organisation and pricing under the National Pharmaceutical Pricing Authority, which creates a policy challenge. Better coordination supported by health experts could help bridge this gap between licensing and pricing.