New Delhi: The Supreme Court on Tuesday questioned the steep prices of life-saving medicines, particularly cancer drugs.
In a hearing concerning substantial difference between the price to retailer (PTR) and the maximum retail price (MRP) of medicines, the top court flagged the absence of adequate price-control mechanisms and raised the question why certain medicines remain outside the scope of the Drugs (Prices Control) Order (DPCO).
Justice Sandeep Mehta mentioned the significant markups on cancer medicines, taking the example of a drug supplied to retailers for approximately Rs 3,000 being sold at an MRP of Rs 27,000.
“27000 MRP of a cancer drug, price to retailer is around 3000. Just see the drastic difference,” Justice Mehta stated.
The bench also questioned the Central government about the absence of a uniform criteria of 16 per cent.
The Supreme Court previously flagged another instance of a cancer medicine priced at Rs 2,700 being sold for Rs 27,000, raising questions about the financial burden imposed on patients requiring life-saving treatment.
On Tuesday, Justice Mehta questioned the rationale behind treating essential and non-essential medicines differently under the existing drug pricing framework.
“Why a distinction between essential and non-essential under DPCO?” he asked.
The court further raised concerns about corporate hospitals asking patients to acquire medicines from their in-house pharmacies, leaving patients with no choice.
“Corporate hospitals insist on purchasing from in house pharmacies. Who pays if the patient is taking treatment under some government scheme? The taxpayer,” the bench observed.
The court noted that inflated medicine prices could also place a financial burden on public funds when patients receive treatment under government-sponsored healthcare schemes.
“Why not a uniform criteria of 16% and nothing beyond that? Every medical device, every medicine is covered under the Essential Commodities Act. If it is an essential item can it be left out of the DPCO?” the court asked the Centre.
