Supreme Court Questions Huge Drug Price Gaps

The Supreme Court has raised concerns over the huge gap between the maximum retail price (MRP) and the price at which medicines are supplied to retailers, particularly in the case of cancer drugs. A Bench of Justices Vikram Nath and Sandeep Mehta questioned the Centre on why a uniform rule could not be introduced to limit the MRP margin to 16% across medicines. During the hearing, the Bench cited a cancer drug with an MRP of around ₹27,000 that was available to a retailer for about ₹3,000, questioning the reason for such a wide price difference.

The Court also flagged concerns over corporate hospitals requiring patients to purchase medicines from their in-house pharmacies at higher prices. It observed that when such medicines are reimbursed under government health schemes, the additional cost ultimately affects taxpayers. Solicitor General Tushar Mehta, appearing for the Centre, said the government would need to find a balanced solution to the issue. The Court has posted the matter for further hearing on October 12.