New Delhi: The Central Government has informed the Supreme Court that it has decided to cap trade margins on anti-cancer medicines at 30% of their maximum retail price (MRP). The development comes amid the court’s concerns over significant price differences between the prices at which medicines are supplied to retailers and the MRP printed on their packaging.
Solicitor General Tushar Mehta, appearing for the Union Government, made the submission before a Bench comprising Justice Vikram Nath and Justice Sandeep Mehta. He informed the court that the Centre would notify a list of anti-cancer medicines covered by the proposed trade margin cap.
The government also indicated that the list could be revised periodically to include additional medicines, depending on market developments and public health requirements. However, inexpensive drugs may be excluded from the proposed measure.
Supreme Court Questions Whether the Measure Is Sufficient
During the hearing, the Supreme Court expressed concern over the broader issue of excessive trade margins in the pharmaceutical sector. The Bench questioned whether restricting trade margins on anti-cancer medicines alone would adequately address the problem of substantial price differences affecting other medicines and medical devices.
The court has been examining the disparity between the procurement prices of medicines and their maximum retail prices, highlighting the financial burden such pricing practices can impose on patients.
Cardiac Stent Pricing Raises Concerns
To illustrate the issue, the Supreme Court referred to an Indian-made cardiac stent reportedly supplied to retailers at approximately ₹5,000 but carrying an MRP of ₹25,000.
The Bench questioned the justification for such a substantial difference between the supply price and the printed retail price.
In response, Solicitor General Tushar Mehta submitted that cardiac stents were already subject to price caps. The exchange highlighted the need to examine whether existing price-control mechanisms are sufficient to address concerns surrounding medicine and medical-device pricing.
Matter Listed for October 27
The Supreme Court has scheduled the matter for further hearing on October 27. The proceedings are expected to continue examining the regulatory framework governing medicine prices and trade margins.
The proposed 30% cap on selected anti-cancer medicines could be significant for patients facing high treatment costs. However, the scope of the measure will depend on the list of medicines notified by the government and the manner in which the policy is implemented.
The court’s broader observations also underline the importance of examining pricing practices across the pharmaceutical and medical-device sectors to improve affordability and protect patients from excessive healthcare expenditure.
