‘Why is the entire system helping drugmakers?’:SC questions gap between MRP and retailers’ purchase price; says, ‘should we let it continue?’

The Supreme Court questioned the government over the wide gap between the maximum retail prices of medicines and the prices at which retailers obtain them. A bench comprising Justices Vikram Nath and Sandeep Mehta asked, “Why is the entire system helping drug manufacturers?” The bench described the National Pharmaceutical Pricing Authority (NPPA) as completely inactive. The court was hearing two cases related to medicine prices. The government said that medicine prices in India are the lowest in the world. The bench responded, “The government is allowing this to happen. This is happening right before the government’s eyes.” The bench asked, “Should this be allowed to continue unchecked?” The Centre told the court that it was the government’s policy “not to regulate the entire ecosystem”. The bench asked, “Why is the entire system working to help these people (the manufacturers)?” The court reserved its judgment in the matter. Questions also raised over trade margins on anti-cancer medicines During a hearing on 12 October, the Supreme Court said the Centre’s response on limiting the trade margin on anti-cancer drugs to 30% of the MRP was “hardly anything to cheer about”. The court asked why the government could not set a limit on the trade margins of other medicines. The Centre, which had faced strong criticism from the Supreme Court over hospitals adding hefty margins to cancer drugs, said it had taken the important decision to cap the trade margin on anti-cancer drugs at 30% of the MRP. According to the Centre, the decision is expected to save patients around ₹2,500 crore annually.