Government capped margins on non-scheduled anti-cancer drugs at 30% of MRP; MedPlus CEO said this has negligible impact on the company

Mon 12 Oct 2026

Oncology share of MedPlus sales

0.1 to 0.2 percent

Government margin cap on anti-cancer drugs

30 percent of MRP

Discounts offered by MedPlus

50 to 80 percent

Typical retail margins cited

70 to 90 percent

Margins on cancer drugs per analyst

70 to 120 percent

Heard on business television between 09:47:12 - 09:50:12 IST.

• Gangadi Madhukar Reddy, MD and CEO of MedPlus, said oncology drugs make up less than 0.1-0.2% of overall sales, so the new margin cap has negligible impact on the company.
• He said capping margins instead of MRP is tricky and he is unsure how it will be implemented or benefit anyone.
• Reddy argued the government should not fiddle with pricing at all and instead let market competition and a level playing field bring prices down naturally.
• He noted MedPlus itself offers 50-80% discounts to beat competition, showing market forces already work.
• He said high margins of 70-90% are not uncommon across many retail categories like sunglasses, and healthcare draws extra scrutiny only because of its nature; he added quality standards and transparency are what government should ensure, leaving competition to handle margins.

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