Rising Platinum Costs Squeeze Drugmakers

Indian drug manufacturers are raising concerns over the sharp rise in platinum prices, a key ingredient for chemotherapy drugs like carboplatin, oxaliplatin, and cisplatin. Platinum costs have nearly doubled in about six months, reaching around ₹8,000 per gram by February 2026, compared to roughly ₹3,869 in September 2025. While prices have since stabilized slightly between ₹5,900-₹6,500 per gram as of April 2026, the steep increase in raw material costs has made current maximum retail prices unworkable. Many of these prices were set as far back as 2013 and have seen very small increases, making prices like ₹61.10 per 10 mg/ml vial for carboplatin unsustainable. Drugmakers are now requesting a significant 50% price increase from the National Pharmaceutical Pricing Authority (NPPA).

Affordable Life-Savers Facing Unprofitability

These platinum drugs are essential for treating many cancers, such as head and neck, breast, and gastrointestinal types. They are recognized globally as vital medicines and are part of treatment guidelines by the Indian Council of Medical Research. Historically, these drugs have been praised for being affordable and accessible, especially when compared to newer, more expensive treatments like antibody-drug conjugates (ADCs) and immunotherapies. However, the low prices, controlled by the government since 2013 under the Drugs (Prices Control) Order (DPCO), now create a difficult situation. While meant to ensure patient access, these low prices discourage reliable production when raw material costs suddenly surge. Carboplatin prices, for instance, have risen only 21.71% since 2015, an annual growth rate of just 2.21%. The market for these drugs is currently valued at ₹110 crore annually, but some industry sources believe its actual potential, given cancer rates, could be ten times higher.

Price Controls Struggle Against Global Costs

India's pharmaceutical industry, which is strong and expected to grow 7-9% in FY2026, is also dealing with unpredictable input costs. Global events have caused price surges of up to 300% for some raw materials and chemicals. Companies such as Cipla, Dr. Reddy's Laboratories, and Zydus Lifesciences, with P/E ratios between 17.6 and 21.2 as of April 2026, operate in this challenging market. While these companies have substantial market values, like Dr. Reddy's over ₹100,000 crore, their profit margins on essential, price-controlled drugs are very small. The NPPA, which regulates drug prices, recently approved a standard 0.65% price increase for scheduled medicines on April 1, 2026, based on the Wholesale Price Index. This small rise is far from what is needed to offset the current platinum cost surge, showing how current systems struggle to handle sudden large price spikes.

Risk of Scarcity for Vital Cancer Drugs

The main danger is that essential first-line cancer treatments could become unavailable. If manufacturers face falling profits because of unmanageable cost increases and strict price controls, they may change their strategies. This could mean cutting production, focusing on more profitable products, or even stopping the manufacturing of vital but low-margin drugs like carboplatin and cisplatin. This situation contrasts sharply with newer, expensive oncology treatments like ADCs and immunotherapies. While innovative, these advanced drugs are very costly for many patients and healthcare systems. In India, generic drugs make up over 72% of platinum drug unit sales, highlighting how sensitive manufacturing costs are for these treatments.

Niti Aayog Precedent Offers Path Forward

Industry groups are referencing a 2019 recommendation from Niti Aayog's Committee on Affordable Medicines and Health Products. That committee supported a one-time price ceiling increase of up to 50% for essential medicines facing production viability problems. This past recommendation is now being suggested as a way to tackle the current crisis. The government, via the NPPA, is under pressure to act quickly and avoid a situation where life-saving chemotherapy drugs, intended to be affordable, become scarce because of the price controls meant to protect patients. The NPPA's final decision will be crucial for ensuring these vital cancer treatments remain available.