Cancer medicines: NPPA caps the trade margin on 137 drugs at 30%; lower MRPs from 9 November 2026
TaxByKK · Compliance News · taxbykk.com17 Oct 2026
In short
The National Pharmaceutical Pricing Authority has capped the trade margin on 137 non-scheduled anti-cancer drugs at 30%, using its extraordinary public-interest power under paragraph 19 of the Drugs (Prices Control) Order, 2013. The order, S.O. 5690(E) dated 17 October 2026, covers every formulation containing a listed drug, alone or in combination, in any strength, dosage form or route, and includes patented drugs. Manufacturers must recompute the maximum retail price from their March 2026 price to stockist or distributor, and cut any MRP above that figure. The revised prices take effect on 9 November 2026.
- Authority
- National Pharmaceutical Pricing Authority (Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers)
- Order
- S.O. 5690(E) dated 17 October 2026 (Gazette of India Extraordinary, Part II, Section 3(ii))
- Type
- Order
- Made under
- Paragraph 19 (and paragraph 9(2) for information) of the Drugs (Prices Control) Order, 2013, read with the Essential Commodities Act, 1955
- Drugs covered
- 137 non-scheduled anti-cancer drugs in Table B, recommended by an Expert Committee under DGHS; patented drugs included
- Trade margin cap
- 30% (MRP = PTS/PTD × {1 + TM ÷ (100 − TM)} + applicable GST, TM not above 30)
- Base price
- Average price to stockist/distributor for March 2026 (April 2025 to March 2026 if there was no March sale; current PTS/PTD for drugs launched after 31 March 2026)
- Revised prices effective
- 9 November 2026
- Filings
- Annexure I revised price information and Form V price list within 7 days of publication in the Gazette
What changed
| Item | Before | Now |
|---|---|---|
| How the MRP of these drugs is limited | Non-scheduled drugs: only the 10% a year cap on MRP increases (paragraph 20) | MRP may not exceed the March 2026 PTS/PTD grossed up for a 30% trade margin, plus GST; higher MRPs must come down |
| Earlier price orders on Table B drugs | Ceiling or retail prices under paragraphs 4, 5 and 15, where issued | Superseded by this order |
| Sales direct to hospitals | — | The hospital or institution is treated as the stockist/distributor; the manufacturer's invoice to it is used to work out the MRP |
| Patient Assistance Programmes | — | Free supplies may be left out of the PTS/PTD calculation if the manufacturer keeps patient records and gives NPPA an undertaking |
| Reporting and publicity | — | Manufacturers must report PTS/PTD and MRP on NPPA's IPDMS portal, advertise the price cut in newspapers and add a DPCO section to their website |
Manufacturers whose MRP is already below the computed figure must keep their existing MRP. GST may be added only if actually paid or payable. Annual increases under paragraph 20(1) remain available, subject to the 30% cap. The order does not list the revised MRP of any product; those come from each manufacturer's price list and NPPA's website. Non-submission of the information is treated as non-reduction of MRP, and overcharged amounts are recoverable with interest.
Who it applies to
- Cancer patients and their families, and health insurers paying for cancer treatment
- Manufacturers, importers and marketers of anti-cancer formulations
- Hospitals, medical institutions, retail chemists and distributors
- State Drug Controllers, and lawyers and advisers handling DPCO compliance
What to do
- Patients and hospitals: from 9 November 2026, check bills for listed anti-cancer drugs against the revised MRP on the NPPA website or the Pharma Sahi Daam app.
- Retailers, hospitals and institutions: display the manufacturer's price list and supplementary price list where customers can see it (paragraph 25(3)).
- Hospitals and medical institutions: monitor MRPs under the order, show the revised prices on your website and report violations to NPPA.
- Manufacturers: recompute the MRP for every pack containing a Table B drug, file Annexure I and Form V through IPDMS, and seek NPPA's permission before lowering production levels.
Reference
National Pharmaceutical Pricing Authority, Order S.O. 5690(E) dated 17 October 2026, trade margin rationalisation of 137 non-scheduled anti-cancer drugs under paragraph 19 of the Drugs (Prices Control) Order, 2013 [PN/284/152/2026/F/F. No. 8(152)/2026/D.P./NPPA-Div.-II].
Read the official PDF: NPPA Order S.O. 5690(E)Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
From when do the lower cancer medicine prices apply?
The order says the revised prices come into effect from 9 November 2026.
How much trade margin is allowed?
Not more than 30%, worked out on the March 2026 price to stockist or distributor, with GST added on top.
Are patented cancer drugs covered?
Yes. NPPA decided that patented drugs on the list are covered, as DPCO, 2013 does not restrict their price fixation unless exempted under paragraph 32.
Does a cheaper brand have to raise its price to the new MRP?
No. Manufacturers whose MRP is already lower than the computed figure must keep their existing MRP.
What if a hospital or chemist charges more than the revised MRP?
The order asks hospitals, institutions and State Drug Controllers to report violations to NPPA, which recovers the overcharged amount with interest under DPCO, 2013.