Supreme Court calls inflated medicine prices ‘daylight robbery’

The Supreme Court on Tuesday said charging patients for medicines at prices far above the procurement cost amounts to fraud, especially when hospitals later claim reimbursement under government health schemes like Ayushman Bharat. A bench of Justices Vikram Nath and Sandeep Mehta observed that a cancer drug with a price to retailer of Rs 2,700 was being sold to patients at an MRP of Rs 27,000, calling it "broad daylight dacoity" and "carnage".

The court was hearing petitions seeking stricter price controls on non-scheduled medicines, which account for 82 per cent of the market and have no upfront price fixation. Livelaw.in reports the court questioned why manufacturers are allowed to print MRPs ten times the actual cost. Barandbench.com adds that the bench said if all medicines were brought under price control, the need for mandatory generic prescriptions might become redundant.

The Union government, represented by ASG KM Nataraj, submitted that it is committed to ensuring affordable medicines and pointed to the Jan Aushadhi Kendra initiative, though petitioners noted these outlets account for less than one per cent of the pharmaceutical market. The matter is next listed on September 29.