Supreme Court questions steep mark-ups on cancer drugs, calls pricing disparity ‘carnage’
Petitioners seek the apex court’s intervention in regulating the prices of drugs, medical equipment, and generic medicines, making them more affordable
On September 29, 2026, the Supreme Court expressed concern over the steep price disparities between the costs paid by retailers and consumers for essential medicines, particularly cancer drugs. A Bench of Justices Vikram Nath and Sandeep Mehta described the excessive mark-ups as "carnage" and questioned why the 16% retailer margin specified in the Drugs (Prices Control) Order (DPCO), 2013 should not be applied to all essential medicines.
The court observed that the nearly ten-fold mark-up on an essential cancer drug, from around ₹3,000 to retailers to ₹27,000 for consumers, ultimately burdens taxpayers and disproportionately benefits private hospitals. Solicitor General Tushar Mehta acknowledged the concern and said the government would need to find a balance, but suggested private hospitals, not pharmaceutical companies, were the primary beneficiaries.
The court also highlighted the impact on public finances when patients receive treatment under government-funded schemes like Ayushman Bharat, ultimately paying through their taxes. The petitions before the court sought intervention to regulate drug prices and enforce price controls under the DPCO, 2013 to prevent violations and reduce profit margins. The matter was posted for further hearing on October 12, 2026.
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