Cancer Drug Shortage: Government Allows Higher Prices For Cisplatin And Carboplatin

The centre has approved an increase in the prices of four essential medicines, including widely used chemotherapy drugs cisplatin and carboplatin, in a move aimed at addressing shortages that have disrupted cancer treatment across the country.

The decision was cleared on Wednesday after concerns over the availability of the drugs intensified. The two medicines are among the most commonly prescribed first-line chemotherapy treatments for several cancers, including oral, lung, cervical, oesophageal, ovarian and breast cancer.

Formulations Under NPPA Price Control Framework

The four formulations approved for a price revision include cisplatin and carboplatin injections, along with two anti-tetanus injections. All four fall under the National Pharmaceutical Pricing Authority’s (NPPA) price control framework under the Drug Prices Control Order (DPCO), 2013.

Under existing rules, manufacturers of these medicines can typically raise prices only once a year based on changes in the wholesale price index. Industry representatives had argued that this mechanism was insufficient to offset a sharp rise in production costs.

Rising Platinum Costs Hit Manufacturing

The shortage of cisplatin and carboplatin emerged after manufacturers stopped production as costs increased sharply.

The active pharmaceutical ingredients used in both medicines require platinum as a key raw material. Platinum prices have risen significantly amid the West Asia conflict. Import duties and currency fluctuations added further pressure on production costs.

Manufacturers were unable to pass on the higher costs because the medicines are subject to government price controls. The latest decision is expected to provide pricing flexibility and improve supplies.

According to a Department of Pharmaceuticals (DoP) communication, the NPPA has been directed to assess the increase in raw material costs and determine revised prices accordingly.

It said that the increase in raw material data given by the company and assessed by NPPA should be the basis for a price rise. The communication also stated that any increase should follow an earlier standing committee recommendation under which prices may be raised by between 10% and 50% from the last fixation, depending on cost escalation.

Tata Memorial Raised Concerns Over Availability

In a 4 June letter seeking approval for the revision, the NPPA highlighted concerns flagged by Tata Memorial Cancer Hospital regarding shortages of carboplatin and cisplatin injections.

The regulator noted that the uninterrupted availability of the medicines was critical from a public health standpoint because they are used extensively in cancer treatment. Doctors across the country had reported difficulty sourcing the drugs, with patients often moving between pharmacies and wholesalers in search of supplies.

The four medicines were part of a list of 82 formulations being examined by an inter-ministerial committee. The committee has sought additional information on the remaining 78 formulations before taking further decisions.

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Pharma Firms Likely To See An Impact

Analysts say that development is likely to affect companies involved in manufacturing oncology injectables, chemotherapy medicines, hospital products or essential generic formulations, including Sun Pharma, Cipla, Dr Reddy’s Laboratories, Zydus Lifesciences, etc.

Also, industry watchers feel that the extent of the impact will depend on the final price revisions approved by the NPPA.

Sources:

Indian Express

The Economic Times