Government orders pharma companies to reduce the prices of three drugs for cancer treatment

In a major relief to cancer patients, the government has directed pharmaceutical companies to cut prices of three cancer drugs with a view to passing on the benefits of customs duty exemption and reduction in Goods and Services Tax (GST) to the consumers.

The National Pharmaceutical Pricing Authority has issued an office memorandum to the concerned manufacturers of this three anti-cancer drugs-drug-trastuzumab, osimertinib, and durvalumab to revise downwards the MRP.

With this, the government has undertaken a commitment so that lifesaving drugs become available at affordable prices. The Ministry of Chemicals and Fertilizers said in a statement that this step has been taken after the announcement made in the General Budget for the financial year 2024-25. In the budget, it was announced to exempt three anti-cancer drugs from customs duty.

Revenue Department of the Finance Ministry, through a notification dated July 23 this year, had reduced customs duty on all three these drugs to nil. The ministry said, "The MRP of these medicines should be reduced in the market and the benefit of reduction in taxes and duties must be passed on to the consumers." Keeping this in mind, NPPA has directed the manufacturers of all the above medicines to reduce their MRP.

According to the ministry, the drug manufacturers will have to provide a price list or supplementary price list of these three medicines to the distributors, state drug controllers as well as the government, mentioning the changed price. The companies have to inform NPPA about the change in price. While presenting the Budget 2024-25 in the Lok Sabha, the Finance Minister Nirmala Sitharaman had proposed to cut customs duty on trastuzumab, osimertinib and durvalumab from 10 per cent to zero.