Supreme Court Directs Government To Cap Prices Of All Non-Patented Medicines
· India · Times of India
The Supreme Court has asked the central government to explain why price controls should not be extended to all non-patented drugs and medical consumables. A bench of Justices Vikram Nath and Sandeep Mehta noted that current regulations only cover a limited number of essential medicines, leaving others to be sold at significantly inflated prices. The court highlighted instances where the maximum retail price is vastly higher than the price to the retailer, such as a saline drip line costing ₹11 for retailers but retailing for ₹270. While the government recently capped trade margins for anti-cancer drugs at 30%, the bench questioned why a similar uniform rule, such as limiting the MRP to 16% above the price to the retailer, cannot be applied across the board. The government argued that rural areas might require higher margins to ensure drug availability, but the court demanded a stronger justification for the current pricing disparities.
Why it matters
This intervention could lead to a major overhaul of pharmaceutical pricing in India, potentially lowering costs for patients across a wide range of essential, non-patented medications.
Read the original report — Times of India
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