India's parliamentary panel asks govt to raise cancer drug prices by only 5% a year

Even as a parliamentary panel in India has asked the government to rationalize the annual price hike limit for cancer drugs, its call for subsidizing cancer drugs in India carries multi-faceted implications for the pharmaceutical industry. As companies assess their strategies, most have to consider the trade-offs between financial viability and patient access, reports The Pharma Letter’s India correspondent.

In a development that has the potential to reshape the drug industry's landscape, impact business strategies, and prompt a reconsideration of pricing models, the Parliamentary Standing Committee on health and family welfare has recommended to the Indian government that the annual price hike limit on cancer drugs be reduced from 10% to 5% in order to save lives.

In addition, it asked the government to subsidize the cost of cancer drugs, as well as to explore negotiating group contracts with the pharmaceutical industry for commonly used high-value cancer drugs using a transparent central tendering system.