​National Pharmaceutical Pricing Authority

• 01 Nov 2024

In October 2024, the National Pharmaceutical Pricing Authority (NPPA) directed drug manufacturers to reduce prices on three major anti-cancer drugs, Trastuzumab, Osimertinib, and Durvalumab, as part of the government’s push for affordable healthcare.

• The directive follows a Union Budget announcement that exempted Trastuzumab, Osimertinib, and Durvalumab from customs duty, promoting cost-effective access to cancer treatments.
• The Department of Revenue issued a notification eliminating customs duty on these three drugs, lowering import costs and reducing overall prices.
• Additionally, the GST rate on the three anti-cancer drugs was reduced from 12% to 5% effective 10^th October 2024, ensuring further price reductions for consumers.
• The NPPA's directive mandates that manufacturers adjust the maximum retail price (MRP) to reflect these tax benefits, effectively passing on savings to patients.
• Manufacturers are required to communicate new prices to dealers, state drug controllers, and the government through a revised or supplementary price list.
• This action aligns with the government’s commitment to making essential medicines more affordable by using tax policy to influence drug pricing.
• Manufacturers must submit updates on price adjustments to the NPPA via the prescribed forms, ensuring transparency and compliance.