India Supreme Court Slams Cancer Drug Price Markups

The Supreme Court of India condemned the steep markup on essential cancer medicines during a hearing on Tuesday, describing the price disparity as "broad daylight dacoity with patients." A bench consisting of Justices Vikram Nath and Sandeep Mehta highlighted a specific instance where a drug's Price to Retailer was Rs 2,700, while its Maximum Retail Price was Rs 27,000.

The court questioned why regulatory authorities remained silent regarding such disparities, noting that the Drug Price Control Order leaves 82 percent of medicines outside ceiling price regulation. This regulatory vacuum allows manufacturers to inflate prices, which the bench noted impacts taxpayers through the Ayushman Bharat scheme, as hospitals may reimburse these high prices using government funds.

Petitions from Kishan Chand Jain and Dr. Sanjay Kulshresthra seek tighter price controls for non-scheduled medicines, mandatory generic prescriptions, and price caps on medical devices. While the Indian Pharmaceutical Alliance argued that manufacturers do not necessarily retain these large margins, the court countered that manufacturers are the ones who fix the MRP.

Additional Solicitor General K M Nataraj stated the government is open to system improvements and supports affordable access through Jan Aushadhi Kendras. The court adjourned the matter until September 29 to further examine proposals for generic mandates and initial price fixation.