In a major step aimed at reducing the cost of drugs, the government has identified and listed 139 drug formulations used for treating various conditions, such as hypertension and chronic ailments, among others. In the first phase, the government plans to fix trade margin rationalization (TMR) for drugs, including Remdesivir, Tocilizumab, influenza drugs, and some patented drugs.

The list of 139 select drug formulations has been vetted by various government bodies, including the National Pharmaceutical Pricing Authority (NPPA), Central Drugs Standard Control Organisation (CDSCO), All India Institute of Medical Sciences (AIIMS), and Directorate General of Health Services (DGHS). At present, the finalized list has been sent to the health minister, Dr. Mansukh Mandaviya. The senior official added that the TMR will be capped between the range of 33% and 50% of the price to distributors.

The union government slashed cancer drug prices in 2019 and provided a 30% margin to the trade channel. This move was implemented as a pilot project for fixing the TMR for more drugs and medical devices in the future.