SC Questions 10x Markup on Cancer Drug, Seeks 16% Cap

The Supreme Court has raised serious concerns over the wide gap between medicine prices and their printed retail rates. The matter came up during a hearing on September 29-30.
A bench of Justices Vikram Nath and Sandeep Mehta questioned how a cancer medicine supplied to retailers at around Rs 2,700 could carry a maximum retail price of Rs 27,000. That is a ten-fold difference.
The court asked the Centre to examine a proposal for a uniform 16 per cent margin over the Price to Retailer for all medicines. Under the current drug price control order, a 16 per cent retailer margin applies only to 388 scheduled essential drugs.
The bench also questioned why some corporate hospitals require patients to buy medicines from their own or designated pharmacies. “Corporate hospitals are industries. It is not a service at all,” the bench observed.
The solicitor general sought time for consultations. The matter is listed for further hearing on October 12.
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