The Supreme Court of India has expressed concerns over the high mark-ups of life-saving medicines, particularly cancer drugs, leading to exorbitant prices in the pharmaceutical market. A Division Bench comprising Justice Vikram Nath and Sandeep Mehta heard a petition requesting the Court’s intervention to address pricing issues related to drugs, medical devices, and others.
The Court asked why the government should not keep the 16 percent margin fixed under the Drugs (Prices Control) Order (DPCO), 2013 to the retailers applicable to all essential medicines to address the high mark-ups. The Judges noted that a cancer drug distributed to retailers for around Rs. 2,700 is sold to consumers at Rs. 27,000.
Regulatory Gaps and Price Disparities
The Court also raised concerns over the activities of private hospitals, including the trend of insisting on the purchase of medicines from in-house pharmacies. Earlier, Commissioner of the Maharashtra Food and Drugs Administration, Tukaram Mundhe, had requested action from the central drugs price regulator and the Department of Pharmaceuticals (DoP) to address the structural regulatory gap in monitoring prices of medical devices and consumables.
Mundhe referenced a Maharashtra study on hospital supplies, revealing that an IV infusion set priced at Rs. 11.05 for trade carried a listed MRP of Rs. 325—a markup exceeding 2,841%. The survey also uncovered that a syringe costing Rs. 6.75 was sold with an MRP of Rs. 57.20, while a catheter purchased at Rs. 29.41 had a printed MRP of Rs. 310.
Need for Urgent Intervention
A Parliamentary Committee had previously flagged the issue, emphasizing the critical need for affordable cancer treatment through coordinated efforts between public and private healthcare providers.
There is lack of an effective nationwide system to regulate what private hospitals can charge patients for procedures, services, medicines and consumables. The Clinical Establishments Act, 2010 provides a legal framework for regulating clinical establishments and envisages government-determined ranges of charges, it has not been implemented. And Clinical Establishment Acts of many states have no provision to regulate the hospital charges.
The situation necessitates immediate attention, and the government must take steps to regulate the prices of life-saving medicines and medical devices.
