The Central government on Wednesday approved the increase in prices of at least four medicines, including two commonly used platinum-based chemotherapy drugs, whose shortage across the country was affecting treatment of cancer patients.

“NPPA (National Pharmaceutical Pricing Authority) has sought the approval of the DoP (Department of Pharmaceuticals) … to increase price in respect to four formulations…. In this regard, it is conveyed that the in-principle approval of the Hon’ble Minister … is granted,” a letter dated June 7 from the DoP to NPPA said.

This decision was made to combat a nationwide shortage of these critical, life-saving medicines, specifically cisplatin and carboplatin. A shortage was caused by various factors. The active pharmaceutical ingredients (APIs) for these drugs require raw platinum, the cost of which has surged drastically because of the West Asia crisis. Prices have been further driven up by higher import duties and currency fluctuations. Meanwhile, manufacturers, caught between high costs and the inability to raise prices because these medicines fall under strict government price controls, halted manufacturing entirely. This order is expected to give them a cost leeway.

Which medication will be subjected to upward revision of prices?

The four formulations include the platinum-based chemotherapy drugs cisplatin and carboplatin, along with two anti-tetanus injections.

These are essential medicines whose prices are controlled by the NPPA under its Drug Prices Control Order 2013. This order essentially allows companies manufacturing these important drugs to raise their prices only once a year as per the increases in wholesale prices.

These four formulations were among the 82 that were being examined by an inter-ministerial committee.

What does the NPPA order actually say?

The NPPA has been asked by the DoP to examine the increase in the cost of raw materials for these drugs and align the price increase accordingly. “The increase in raw material data given by the company and assessed by NPPA should form the basis for giving the price increase,” the letter stated. It added that the increase should be guided by the previous formula given by a standing committee that the increase should be between 10% and 50% from the last fixation.

The letter by DoP under secretary Aparna also urged the NPPA to examine other cases where the industry has requested for an increase in price.

A letter from NPPA to the DoP on June 4, requesting approval for the increase in prices of the four formulations, said: “The committee also noted the concerns expressed by Tata Memorial Cancer Hospital regarding shortages of carboplatin and cisplatin injections, which are widely used as first-line chemotherapy drugs for the treatment of various cancers. Ensuring uninterrupted availability of these critical medicines is essential from a public health perspective.”

Oncologists from across the country had raised an alarm that the commonly used drugs were not available in pharmacy shelves, with cancer patients running from one retailer or wholesaler to the other in search of the medicine. The chemo drugs are used in the treatment of several solid tumour cancers, including oral, lung, cervical, oesophageal, ovarian, and breast cancer. The letter added that the committee had sought additional information regarding the 78 other formulations in order to take further decisions.