The Central Government has informed the Supreme Court of India that it has decided to cap trade margins on anti-cancer medicines at 30% of their maximum retail price (MRP). The Supreme Court, however, has called for a broader review of medicine pricing across the pharmaceutical sector, raising concerns over excessive margins on medicines and medical devices.
Solicitor General Tushar Mehta, appearing for the Union Government before a bench comprising Justice Vikram Nath and Justice Sandeep Mehta, submitted that the Centre would notify a list of anti-cancer drugs covered by the proposed trade margin cap. He added that the list could be revised periodically to include additional medicines based on market developments and public health requirements, while excluding inexpensive drugs.
The development follows repeated concerns raised by the Supreme Court over the substantial difference between the prices at which medicines are supplied to retailers and the maximum retail prices printed on their packaging. The Court has highlighted the financial burden such price disparities place on patients and the need for an effective regulatory framework.
During the hearing, the bench questioned whether limiting trade margins on anti-cancer medicines alone would adequately address the wider issue of excessive pricing in the pharmaceutical industry. The Court also referred to the pricing of medical devices, citing the example of an Indian-made cardiac stent supplied to retailers for approximately ₹5,000 but carrying an MRP of ₹25,000.
Responding to the Court’s concern, Solicitor General Tushar Mehta submitted that cardiac stents were already subject to price caps. The bench nevertheless emphasised the need to examine the broader framework governing medicine and medical device pricing.
The matter has been listed for further hearing on October 27. The proceedings may have wider implications for pharmaceutical pricing regulation, transparency in trade margins and the affordability of essential medicines and medical devices in India.
