New Delhi, Oct. 27 -- Flagging the "massive difference" between the MRP of medicines and the price to retailers, the Supreme Court on Tuesday slammed the Centre asking if it can provide "any justification for this loot" and also if manufacturers be allowed to "run amok".
A bench of justices Vikram Nath and Sandeep Mehta observed that the National Pharmaceutical Pricing Authority (NPPA) seems to be a "totally defunct" body and asked the government why the entire system was working to help pharmaceutical manufacturers.
The top court reserved its verdict on two petitions which raised drug-related issues, including that of ensuring strict price control over medicines.
After the Centre told the bench about the decision to cap the trade margin on anti-cancer drugs at 30 per cent of the maximum retail price (MRP), the bench asked why there can't be a uniform 16 per cent margin on all medicines.
"The government policy is that entire ecosystem is not to be controlled," Additional Solicitor General (ASG) Aishwarya Bhati, appearing for the Centre, told the bench. The bench observed that a medicine having Rs 15 as price to retailer (PTR), carries an MRP of Rs 250. "Can you show any justification for this loot," the bench asked, adding, "The government is allowing this to happen. It is under the government's own eyes that it is happening."
When Bhati referred to the aspect of having control, the bench asked, "Should it be allowed to run amok?"
The law officer told the bench that medicine prices in India were among the lowest in the world. While referring to the difference between the MRP and PTR, the bench said, "Why is the entire system working to help these people (manufacturers)."
The top court referred to a recent case where a medical distributor's wife was admitted to a hospital for cancer treatment. It said the hospital charged Rs 1.30 lakh for an injection which was available at a price of Rs 11,000 to the distributor.
"It seems that the public at large is living in some day dream that some day they will be benefitted by the NPPA," the bench observed.
When Bhati referred to the issue of control, the bench observed, "It is not a question of control. There is 300 per cent, 400 per cent or more difference. Why this difference? Where does that difference go? What is the justification for this massive difference." The law officer referred to the Centre's affidavit which said the Indian drug market is fairly competitive, with a large number of pharmaceutical companies in every drug segment, resulting in one of the lowest prices in the world.
Published by HT Digital Content Services with permission from Millennium Post.