NPPA Issues Memorandum to Companies for Price Reduction on Cancer Drugs

The government has instructed companies to reduce the prices of three anti-cancer drugs in order to pass on the benefits from customs duty exemptions and reductions in GST to consumers. In line with the government’s commitment to ensuring that drugs remain affordable, the National Pharmaceutical Pricing Authority (NPPA) has issued a memorandum directing the manufacturers of these drugs to lower the maximum retail price (MRP) for Trastuzumab, Osimertinib, and Durvalumab.

This action follows the announcement made in the Union Budget for the fiscal year 2024-25, which exempted these three anti-cancer medicines from customs duty, as stated by the Ministry of Chemicals and Fertilizers.

On July 23 of this year, the Department of Revenue, part of the Ministry of Finance, issued a notification reducing the customs duty on these drugs to zero.

As a result, the ministry emphasized that there should be a corresponding reduction in the MRP of these drugs in the market, ensuring that the benefits of reduced taxes and duties are passed on to consumers. Consequently, the NPPA has directed all manufacturers of the mentioned drugs to lower their MRP accordingly.