New Delhi, Sept. 29 -- The Supreme Court on Tuesday questioned the steep markup on cancer medicines in private hospitals, calling a 10-fold difference between the price paid by retailers and the maximum retail price "carnage" and suggesting a uniform 16 per cent margin on medicines.
A bench of Justices Vikram Nath and Sandeep Mehta asked the Centre to examine why patients are often required to purchase medicines from pharmacies linked to corporate hospitals. The bench said such practices ultimately place the financial burden on patients and taxpayers.
The court was hearing petitions relating to drug pricing, generic prescriptions and regulation of medical devices under the Drugs (Prices Control) Order, 2013.
Justice Mehta pointed to the example of a cancer medicine supplied to retailers at a price of Rs 2,700 but carrying an MRP of Rs 27,000. "This is carnage. Plain and simple," the bench said. It questioned why such a gap was permitted and asked, "Why not keep a 16 per cent margin on MRP of everything?"
The bench also questioned the practice of hospitals insisting that patients buy medicines from their own chemists or specified pharmacies, warning that patients could face difficulties in receiving treatment if they purchase medicines elsewhere.
"If that patient is taking treatment under a government scheme, who reimburses? The taxpayer does. So why not uniform criteria?" Justice Mehta asked.
The Solicitor General said the government would examine the matter and sought two weeks to discuss the issue with officials. He also said a balance would have to be found while acknowledging the need to address the concerns raised before the court.
The bench questioned where the large difference between the retailer price and MRP goes and who ultimately benefits from it. It also noted that pharmaceutical companies may not necessarily be the main beneficiaries, with private hospitals appearing to gain from the pricing structure.
Justice Mehta cited another example, saying a plain statin costs about Rs 40 while a version combined with aspirin costs around Rs 70. He questioned the impact of such pricing practices on ordinary patients, asking, "Why should the common man suffer all this?"
The petitions also raise concerns over the pricing of non-scheduled medicines. According to one plea, scheduled medicines are subject to ceiling prices, while non-scheduled formulations, which account for around 80 per cent or more of medicines by number and value, have greater freedom in fixing MRPs, subject to annual price increases of up to 10 per cent.
The court will hear the matter next on October 12 after considering the Centre's response.
Published by HT Digital Content Services with permission from Millennium Post.