Cancer Drug Costs to Fall by Up to 70 Percent After Supreme Court Order

Starting next month, patients in India will pay less for 137 specific cancer treatments. The price reduction follows a directive from the Supreme Court that limited the profit margins hospitals and retailers can add to these medicines. Officials estimate the change will save patients 2.5 billion rupees annually.

The legal push began with Sarojam Radhakrishnan, a retired bank clerk in Kerala. She was diagnosed with breast cancer in 2021. Her doctors prescribed targeted therapies that cost more than 63,000 rupees per month. This sum was beyond her family's financial reach. In 2022, she filed a petition in the Kerala High Court, asking the state to intervene and lower the costs.

When the case reached the Supreme Court, the justices reviewed the pricing chain. Justices Vikram Nath and Sandeep Mehta noted that a drug supplied to hospitals for 2,700 rupees often carried a retail price of 27,000 rupees. The court described the prevailing markups as "carnage" and "extortion." Data from the National Pharmaceutical Pricing Authority indicated that trade markups on some cancer drugs averaged 170 percent, with some cases exceeding 700 percent.

A 30 percent cap on trade margins had already applied to 42 cancer drugs for several years. The government has now extended this restriction to 137 additional medicines. In a statement, the Department of Pharmaceuticals said the measure is expected to cut medicine prices by up to 70 percent. This reduction is designed to lower the amount patients must pay out of pocket.

The financial strain on families is a documented issue. Krishan Kalra, a former council member of the Rajiv Gandhi Cancer Institute and Research Centre, noted that few people attend free diagnosis camps in Gurgaon. He said many are too afraid to be tested because they lack funds for treatment. Cancer drug prices currently range from 38,000 to 380,000 rupees. Studies by the Public Health Foundation of India indicate that healthcare spending pushes approximately 55 million Indians below the poverty line each year.

Existing insurance provides limited protection. The Ayushman Bharat scheme offers 500,000 rupees in annual coverage per family. This amount equals the cost of one dose of Kadcyla, a breast cancer drug for which patients may require up to 14 doses. Dr. Ravi Kannan, a surgical oncologist at Cachar cancer hospital in Assam, described the new ruling as "a welcome step." He noted that some families start treatment but stop because they cannot afford to continue.

India records about 1.56 million new cancer cases annually, up from 1.39 million in 2020. Jyotsna Singh, co-convener of the Working Group on Access to Medicines and Treatments, argued that a total overhaul of healthcare is needed. She warned that hospitals might offset lower drug prices by raising other charges. The Supreme Court has asked the government to explain why the cap does not apply to all non-patented medicines. The government has until 27 October to respond. Radhakrishnan died in September 2022 while her case was pending.