Trade margin regulation must therefore be backed by closer scrutiny of manufacturers' prices and transparent reporting of sales and discounts.Price control needs to work in concert with measures such as stronger public-health services, wider insurance coverage and more research on generics.3 min readOct 30, 2026 06:05 AM IST First published on: Oct 30, 2026 at 06:05 AM ISTThe government’s decision to regulate trade margins on non-scheduled cancer drugs is a response to an urgent public-health concern. In recent years, new therapies have offered hope for cancer patients. At the same time, unaffordable drugs are known to be a major cause for patients delaying treatment, skipping doses or even stopping medication. According to the National Pharmaceutical Pricing Authority, intermediaries between manufacturers and patients — stockists, distributors, hospital pharmacies, and wholesale agents — add an average profit mark-up of around 170 per cent to the prices of these medicines. Now, the government has capped the seller’s profit at 30 per cent of the MRP. The intervention’s litmus test will be in making treatment more accessible.Regulating trade margins is not the same as controlling prices set by manufacturers. The cap does not apply only to the price at which companies sell medicines to distributors or hospitals. If the initial price is too high, the treatment may remain unaffordable even after the trade margin limit comes into force. Patented drugs face little competition from generic alternatives, giving manufacturers greater control over their prices. The price trajectory of medicines already subject to caps underlines the limitations of this approach. The monthly cost of ribociclib reportedly rose from Rs 58,000 to Rs 78,000, despite the restrictions placed on profits on the breast cancer drug in 2019. Another challenge is the use of artificial discounts to distort the apparent market price. Manufacturers may offer steep discounts on a small number of units to select corporate hospitals while selling most of their stock at much higher prices. This could make it difficult for regulators to determine the medicine’s actual market price. Trade margin regulation must therefore be backed by closer scrutiny of manufacturers’ prices and transparent reporting of sales and discounts.AdvertisementAt the same time, regulation must be designed and enforced with care. Pharmacies have legitimate costs, including those related to storage and handling. A blanket approach could disrupt supplies to underserved areas and affect the quality of care. There are also fears that hospitals will pass on costs to patients through means such as increasing room rents. Price control needs to work in concert with measures such as stronger public-health services, wider insurance coverage and more research on generics.© The Indian Express Pvt Ltd# Cancer ShareWhatsapptwitterFacebook