India Raises Price Caps on Two Cancer Drugs by 50%

India’s drug price regulator raised ceiling rates for cisplatin and carboplatin by 50% after raw material cost surges triggered widespread shortages, a government notification showed. The National Pharmaceutical Pricing Authority invoked special provisions with federal approval, citing public interest.

The ceiling for cisplatin rose to ₹10.89 per ml from ₹7.26. Carboplatin went to ₹90.74 per ml from ₹60.49, excluding taxes. The drugs treat ovarian and lung cancers, among others.

Hospitals, especially government-run facilities, have faced shortages. The NPPA said uninterrupted availability is critical for public health. The increase is a one-time revision, reviewed after six months.

The shortage stems from platinum prices more than doubling. India depends on imported platinum. Supplies from South Africa have dwindled. The West Asia conflict disrupted supply chains, doctors and industry executives told Reuters.

The price cap hike offers relief to drug makers who had paused production. Companies include Cipla, Intas Pharmaceuticals, Naprod Life Sciences and Venus Remedies.

The risk for investors: the revision is temporary. If platinum prices stay high, the NPPA may need another increase or face renewed shortages. If prices fall, margins could compress again. The six-month review is the next catalyst.

The NPPA’s notification showed the rates effective June 11. The authority noted concerns regarding shortage and supply disruptions of these essential oncology medicines.