Government admits problem of exorbitant pricing of drugs in SC for first time

The Supreme Court has acknowledged the issue of excessively high drug prices in India's state of Maharashtra for the first time. In a significant development, the court expressed concern over patients being forced to bear exorbitant costs for essential medicines.

During a bench hearing on Tuesday, the Supreme Court justices questioned the rationale behind allowing most medicines to be sold at inflated prices while maintaining price controls for a few scheduled medicines. They suggested a uniform rule limiting the Maximum Retail Price (MRP) to no more than 16% above the price paid to the retailer (PTR).

The government's official, SG Tushar Mehta, informed the court that he had discussed the matter with relevant officials. He stated that the government was not taking an adversarial stance and sought time for further consultations to find a balanced solution. The court emphasized that taxpayer money was also wasted due to the high drug prices, as corporate hospitals receive full reimbursement for the inflated MRP when patients undergo treatment under government-sponsored welfare schemes, funded by the exchequer.

The court questioned the high prices set by pharmaceutical companies and corporate hospitals, questioning their motives and the impact on society. The court adjourned the case to October 12 for further deliberations.