Max Healthcare Shares Rose After Nppa Approved 30% Anti-cancer Drug Margin Cap in Principle

Max Healthcare shares rose on October 9 after the National Pharmaceutical Pricing Authority approved in principle a proposal to cap trade margins for identified non-scheduled anti-cancer drugs at 30% of the maximum retail price. The covered-drug list has not yet been finalised, and the Centre said it expected implementation later this month.

Max Healthcare shares rose as the drug-margin proposal awaited finalisation

Max Healthcare and Apollo Hospitals were among the top Nifty gainers on October 9, according to the supplied market report. Yatharth Hospital, Krishna Institute of Medical Sciences and Fortis Hospital were trading 3.0%, 3.0% and 4.2% higher, respectively, at 11:07 IST.

The NPPA said its meeting on Thursday approved, in principle, the proposal under Paragraph 19 of the Drugs (Prices Control) Order, 2013, for trade-margin rationalisation of identified non-scheduled anti-cancer drugs. The authority said the proposal remained subject to finalisation of the list of medicines covered.

The Centre said it expected the decision to be implemented later this month. This means the proposed price change was not immediate as of October 9.

Centre says prices of 110 anti-cancer drugs will fall

The Centre said the decision would bring down the prices of 110 anti-cancer drugs, including 35 patented medicines. It estimated that cancer patients could save ₹2,500 crore annually.

The NPPA said its analysis found that non-scheduled anti-cancer medicines carried an average price mark-up of about 170%. The Centre said the mark-up reached 700% or more for some medicines.

The NPPA said the reduction in maximum retail prices would vary by medicine, with the broad range placed at 20% to 70%. It attributed the variation to each product’s existing trade structure and mark-up.

Supreme Court sought a 16% margin on September 29

The Supreme Court voiced concern on September 29 about high prices for anti-cancer medicines. A bench comprising Justice Vikram Nath and Justice Sandeep Mehta told Solicitor General Tushar Mehta that it wanted a uniform 16% margin on all medicines.

The Centre said cancer treatment placed a heavy financial burden on patients and their families, who often paid substantial amounts from their own pockets.