India, Oct. 9 -- The cap is meant to cut cancer drug prices by up to 70% and save patients about Rs 2,500 crore a year, and it applies to branded and generic, domestic and imported, and patented and non-patented medicines. The government says manufacturers' selling prices and revenues stay untouched, since the cap targets mark-ups in the distribution chain, and drugmakers must keep production at current levels. The timing matters, as the Supreme Court hears a case on drug mark-ups on October 12, after questioning how a drug bought for about Rs 2,700 could carry an MRP near Rs 27,000. Hospital shares reacted as investors tried to work out who gains and who loses.

1. Apollo Hospitals India's biggest private hospital chain was among the ga...