Top Court Seeks Uniform 16% Margin on Medicines
What Happened
The Supreme Court sharply criticized steep markups on cancer medicines, citing a case where a drug supplied to retailers for about ₹2,700-3,000 was sold to patients at an MRP of ₹27,000. Calling the practice "carnage", a bench of Justice Vikram Nath and Justice Sandeep Mehta asked the Centre to examine whether a uniform 16% margin, similar to the margin prescribed under the Drugs (Prices Control) Order (DPCO), should apply more broadly to medicines. The Court also questioned the practice of corporate hospitals requiring patients to buy medicines only from their in-house or designated pharmacies, saying it increases the burden on patients and taxpayers.
Key Takeaways
The case could trigger a wider review of drug-pricing practices in India, particularly for life-saving medicines such as cancer drugs. The Court signaled concern that excessive markups ultimately hurt patients and increase costs borne by government-funded health schemes and taxpayers.