SC Questions Central Government On Drug Pricing
In a much-needed focus on the severe asymmetry faced by patients over drug pricing, the Supreme Court has directed sharp queries at the Union of India on why there is a shocking mark-up in prices at the retail level, to the detriment of citizens. Although the court took up specific instances related to cancer drugs in cases filed by Kishan Chand Jain and Dr Sanjay Kulshreshtha, it became evident…
The Supreme Court has questioned the Union of India over the excessive mark-ups on drug prices, particularly cancer drugs, that are causing distress to patients. Cases filed by Kishan Chand Jain and Dr Sanjay Kulshreshtha brought attention to the issue, revealing the discrepancy between retail prices and the prices listed in the Drugs and Cosmetics Act schedule.
The court emphasized the extortionate pricing, citing an example where a cancer drug was sold at Rs 27,000 retail when it cost Rs 2,700 to manufacture. The court pointed out that only 18% of medicines are covered under price control, representing just 17% of the total value. The Supreme Court highlighted the growing financial burden on citizens, with out-of-pocket healthcare expenses in India being approximately 43%.
While Jan Aushadi Kendras and generics help lower costs, their efficacy remains questionable due to quality concerns. The court also addressed the issue of drug quality, as the current drug price control regime fails to address such problems. A comprehensive review of the drug price control system is needed, starting with standard drugs in hospitals.
The court suggested implementing a national common procurement program, similar to Tamil Nadu’s Medical Services Corporation, to tackle the crisis. All life-saving drugs should be under price control, with a transparent formula to determine the maximum retail price. Additionally, the National Pharmaceutical Pricing Authority should publish the price-to-retailer submitted by manufacturers on its portal to ensure transparency and comparison with the MRP.
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