Cancer drug makers seek 50% price hike as platinum surge hits production viability

Mumbai | Delhi: Manufacturing of cancer medicines such as carboplatin, oxaliplatin and cisplatin has become unviable due to a surge in the price of platinum, a critical component in these compounds, claim local drug producers. They have approached the National Pharmaceutical Pricing Authority seeking a 50% increase in the maximum price at which these products can be sold to patients.

The ceiling price for carboplatin is currently ₹61.10 per 10 mg/ml vial. For cisplatin, it ranges from ₹70 to ₹300 based on the drug strength.

Cipla, Intas, Dr Reddy's Laboratories, Zydus Lifesciences, Emcure, Fresenius and Hetero are the top among dozens of local companies making these drugs.


"If the government does not intervene and take corrective steps in public interest, it may threaten our profitability and availability of an important first-line cancer treatment," an industry executive told ET.

Geopolitical uncertainty has pushed the price of platinum to almost double in the last six months, in tandem with other precious metals such as gold and silver. The price surged to ₹8,000 per gram in February from ₹3,869 last September.

Although the price seems to be stabilising, it remains historically high, the executive said.

The current ceiling price for carboplatin became commercially unviable in January itself, he said.

This class of platinum drugs forms the backbone of treatment across multiple cancer types including head and neck, breast and gastrointestinal, Max Oncology vice chairman Pramod Kumar Julka said.

"Platinum drugs like cisplatin and carboplatin are among the most affordable and widely accessible chemotherapy agents available," he said.

But their low price is itself creating problems now, said another industry executive.

"So, while platinum drugs are far more affordable than ADCs (antibody-drug conjugates) or immunotherapy, their low price point means manufacturers have little financial incentive to produce them reliably, creating a dangerous paradox. The government's intervention is hence important," he said.

Platinum-based drugs have been under government price controls since 2013. For carboplatin, the price increase since 2015 is just 21.71%, or a compound annual growth rate of 2.21%, said industry insiders.

Carboplatin is fundamentally important in cancer treatment protocols notified by the Indian Council of Medical Research and has been recognised as an essential medicine globally. The drug has been listed in the National Formulary of India, 2021 and indicated for advanced stages of ovarian cancer and certain lung cancers.

According to data from market research agency PharmaTrac, the market for platinum-based drugs is ₹110 crore, growing at 14% annually.

Retail sales do not fully capture the market size of these drugs since a significant part of it reflects in institutional sales or direct sales to hospitals, said PharmaTrac vice-president Sheetal Sapale.

"Given the increase in cancer cases, the market size for 'platins' can be at least ten times higher," an industry executive said.

The Committee on Affordable Medicines and Health Products of the Niti Aayog had in 2019 endorsed a one-time increase of 50% in the ceiling prices for essential medicines facing manufacturing unviability.