Max Healthcare, Apollo Hospitals, other hospital shares rose up to 4% on October 9 a day after the Centre has decided to cap trade margins at 30% of the MRP for all non-scheduled anti-cancer drugs, a move which is expected to reduce their maximum retail price by up to 70%. However, this is higher than the 16% margin recently sought by Supreme Court.
The move will lead to an estimated annual savings of Rs 2,500 crore for cancer patients, Centre said.
In a notification, the National Pharmaceutical Pricing Authority (NPPA), the regulatory body that controls prices of pharmaceutical drugs, noted that the proposed intervention is expected to reduce maximum retail price (MRP) broadly in the range of 20-70%, depending upon the existing trade structure and mark-up of individual medicines.
Max Healthcare, Apollo Hospitals were among top Nifty gainers on October 9 while other hospital stocks like Yatharth Hospital, Krishna Institute Of Medical Sciences, Fortis Hospital were trading 3%, 3% and 4.2% higher, respectively.
Cancer incidence is rising in India, with approximately 60 people per one lakh population affected by cancer, an official statement said, adding that the treatment places a heavy financial burden on patients and their families, who often have to pay substantial amounts from their own pockets.