Impact of Customs Duty Exemptions on Cancer Drugs: Analysis

In a significant move aimed at improving cancer treatment accessibility in India, Union Finance Minister Nirmala Sitharaman recently announced the exemption of customs duties on three crucial cancer drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. 

The three cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—are manufactured by AstraZeneca and are quite expensive. They earlier attracted a 10% import tax. With the government's budget move, they have become cheaper.

This policy change, along with revised customs duty rates for X-ray devices, marks a notable shift in healthcare policy and promises to benefit cancer patients nationwide substantially.

India reports 14.13 Lakh new cancer patients every year, with an annual reported mortality of 9.16 Lakhs, as per data by GLOBOCAN 2022 by the International Agency for Research on Cancer (IARC), World Health Organization.

In India, around 2 lakh women are diagnosed with breast cancer every year. Poor lifestyles such as late marriage, alcohol, smoking, and inadequate breastfeeding make hormonal imbalances in women, potentially causing breast cancer in them.

In an exclusive interview with DHN, Dr Deepak Patkar, Director of Medical Services at Nanavati Max Super Speciality Hospital, Mumbai, provided valuable insights into how these customs duty exemptions will impact cancer care. 

Dr Patkar explained that the exemption of Trastuzumab Deruxtecan, Osimertinib, and Durvalumab is expected to reduce costs significantly. This reduction will make these advanced therapies more affordable, benefiting approximately 27 Lakh cancer patients in India. 

Dr Patkar states, "The removal of customs duties on these vital drugs is set to lower their prices substantially. This will enhance affordability and access, especially for those battling breast cancer, lung cancer, and biliary tract cancer."

Impact on Healthcare & Research

Removing customs duties is anticipated to have far-reaching effects on the broader healthcare landscape. Dr Patkar highlighted that this policy change will relieve some financial pressure on healthcare systems, particularly in Tier-I and Tier-II cities. 

Tertiary care private hospitals will be better equipped to manage patient loads, which could ease the burden on government healthcare institutions and improve the overall delivery of cancer care.

Moreover, the availability of these drugs at reduced costs is likely to influence cancer research. As Trastuzumab Deruxtecan, Osimertinib, and Durvalumab become more widely used, they will likely become standard components of treatment regimens. 

This increased use, according to the Dr, will strengthen observational studies and contribute to more robust research in oncology.

Policy Recommendations

Looking forward, Dr Patkar suggested several additional measures to maximize the impact of these customs duty exemptions. 

He recommended introducing further subsidies and increasing research funding to support the integration of these drugs into treatment protocols. Strengthening healthcare infrastructure, especially in rural areas, will also be crucial to ensure that the benefits of these policy changes reach all patients.

Dr Patkar also emphasized the importance of collaboration between private healthcare institutions, government bodies, and non-governmental organizations. 

Additionally, he advocated for developing patient assistance programs to enhance access to advanced cancer therapies across India.

Bottom Line

The exemption of customs duties on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab represents a significant step towards making cancer treatments more accessible and affordable in India. 

While this policy change is expected to positively impact cancer care and research, continued efforts and additional support will be essential to fully realise its benefits for patients nationwide.