• The Indian government has directed manufacturers to reduce prices on three key anticancer drugs.
• This decision follows the government's move to slash customs duty and GST rates on these drugs.
• The drugs are primarily manufactured by AstraZeneca and are used for treating various types of cancer.
• This move is part of the government's commitment to making cancer treatment more affordable in India.

In a significant move aimed at providing relief to cancer patients in India, the government has directed manufacturers to reduce the maximum retail price (MRP) on three key anticancer drugs -- Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. This decision comes in the wake of the government's decision to slash the basic customs duty (BCD) to zero and reduce the Goods and Services Tax (GST) rates on these drugs from 12 per cent to 5 per cent.

The Union Minister of State for Chemicals and Fertilisers, Anupriya Patel, informed the Lok Sabha about this development in a written reply. She stated that manufacturers have complied with the notifications and reduced the MRP on these drugs, subsequently filing the information with the National Pharmaceutical Pricing Authority (NPPA).

The NPPA, in turn, issued a memorandum directing the companies to reduce the MRP on these drugs, thereby passing on the benefits of reduced taxes and duties to the consumers.

Impact of the Government's Decision

AstraZeneca Pharma India Ltd, for instance, has reduced the MRP per vial on several formulations. The company, in a letter dated 19.11.2024, stated that the downward revision on account of BCD becoming nil would be implemented when the stocks benefitting from BCD relief are released for commercial sales in the market.

The government's decision to exempt customs duty on these three cancer drugs was announced in the Union Budget. This move was aimed at reducing the financial burden on people suffering from cancer and facilitating accessibility. Trastuzumab Deruxtecan is used for breast cancer, Osimertinib is for lung cancer, and Durvalumab is used for both lung cancer and biliary tract cancer.

The decision to reduce the prices of these drugs is particularly significant given the rising incidence of cancer in India. According to a recent Lancet study, India registered about 12 lakh new cancer cases and 9.3 lakh deaths in 2019, making it the second-highest contributor to the disease burden in Asia.

The Role of AstraZeneca and the Future of Healthcare in India

The drugs in question are primarily manufactured by AstraZeneca plc and supplied in India by its subsidiary, AstraZeneca Pharma India Limited, based in Bengaluru. Trastuzumab Deruxtecan, branded as Enhertu and developed by Daiichi Sankyo and AstraZeneca, is used for treating breast and stomach cancers. Osimertinib, known as Tagrisso and produced by AstraZeneca, is a therapy for non-small cell lung cancer. Durvalumab, marketed as Imfinzi and also made by AstraZeneca, works by boosting the immune system's ability to recognise and fight cancer cells.

The healthcare sector in India has been a key focus area for the government. In the first 100 days of its third term, the Prime Minister Narendra Modi led government rolled out several schemes to boost the healthcare sector. These included providing health cover to all senior citizens aged above 70 years, and adding 75,000 new medical seats. The government also introduced the Rashtriya Poshan Mission, aimed at improving the nutritional status of children, pregnant women, lactating mothers, and adolescent girls.

In the Union Budget 2024-25, presented by Nirmala Sitharaman, Minister of Finance & Corporate Affairs, the government reiterated its commitment to all-round, all-pervasive and all-inclusive development of people, particularly farmers, youth, women and the poor. The government also proposed changes in the BCD on x-ray tubes and flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, to synchronise them with domestic capacity addition.