Government caps cancer drug margins, hospital stocks surge

India's government has capped trade margins on non-scheduled anti-cancer medications at 30%, potentially reducing prices by 70%. Pharmaceutical officials noted that hospitals often favor costlier medicines offering better profits, leading to unethical practices by smaller manufacturers and medical professionals. Hospital stocks including Apollo, Max Healthcare, Fortis, and Manipal rose up to 5% following the announcement. Investment analysts remain optimistic about these companies, expecting manageable earnings impacts despite short-term margin pressures due to strong demand.