What India’s 2019 cancer drug margin cap teaches us about medicine prices
1:02In 2019, India capped trade margins on forty two cancer medicines at thirty percent. Prices of five hundred and twenty six brands fell, some by around ninety percent.
Transcript
In 2019, India capped trade margins on forty two cancer medicines at thirty percent.
Prices of five hundred and twenty six brands fell, some by around ninety percent.
For many specialty medicines, that gap had grown very large, because manufacturers competed for distribution by offering bigger margins.
The cap limited the MRP to no more than thirty percent above the price to stockist.
The government's own review reported falls of about ninety percent on some cancer medicines.
Every seller, whether chemist, online pharmacy or hospital, then sold from a lower MRP.
The lessons for today's medicine price debate.
The problem can be addressed upstream, at the trade margin.
The fix applies equally to every channel.
And no single seller has to be singled out.
The full guide, with sources, is on gauravphogat.com.
The link is in the description.
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