Government moves to cap cancer drug trade margins at 30%, could cut prices by up to 70%

Government moves to cap cancer drug trade margins at 30%, could cut prices by up to 70%

The Department of Pharmaceuticals is moving to cap trade margins on expensive cancer medicines, including some patented drugs, at 30 per cent over the cost to distributors, a measure that could cut maximum retail prices by as much as 70 per cent. A committee headed by the Director General of Health Services is drawing up the list of medicines to be covered, with the measure expected to take effect within ten days. The move builds on a 2019 pilot that capped trade margins on 42 cancer medicines, but this time targets only the costliest drugs, since a 30 per cent cap on cheaper medicines could discourage companies from marketing them at all.