Centre Caps Cancer Drug Trade Margins At 30 Per Cent, Supreme Court Questions High Prices Of Other Medicines

The Supreme Court on Monday called for a broader examination of drug pricing in India, questioning the limited scope of the Centre's proposal to regulate trade margins. A bench of Justices Vikram Nath and Sandeep Mehta took issue with the government's decision to cap trade margins at 30 per cent only for cancer drugs, urging wider price regulation.

Solicitor General Tushar Mehta informed the bench that the Centre would notify a list of cancer drugs subject to the margin cap, which would be updated periodically. However, the justices were unconvinced by this limited approach, citing examples of substantial price discrepancies between retail and MRP prices for medical devices and other medicines.

They questioned how such pricing served patients' interests and whether excessive government intervention could adversely affect drug availability. The Centre argued that drug price regulation must balance affordability, availability, and market dynamics, cautioning against overly restrictive measures. The court, however, remained committed to exploring whether existing pricing mechanisms adequately protect patients from excessive markups, especially in cases of significant differences between procurement prices and MRP prices.

The hearing was postponed until October 27, as the court had previously expressed concern over steep markups on life-saving medicines.