'Broad Daylight Dacoity': Supreme Court Slams 10-Fold Markup on Cancer Drugs, Flags Exploitation of Patients

The Supreme Court has launched a scathing attack on the pharmaceutical pricing structure in India, expressing deep shock after discovering that a life-saving cancer medication sold to retailers for ₹2,700 is retailed to vulnerable patients at an exorbitant maximum retail price (MRP) of ₹27,000.

Hearing a PIL filed by Kishan Chand Jain concerning gaps in drug price regulation, a bench comprising Justices Vikram Nath and Sandeep Mehta didn't mince words.The court characterised the massive ten-fold price disparity as an act of absolute carnage and "broad daylight dacoity" against ailing citizens, noting that families are routinely forced to sell their homes and personal ornaments just to afford basic oncology care.

The Anatomy of Pharmaceutical Inflation

The core grievance centers around the wide gulf between the Price to Retailer (PTR) and the MRP printed on medicine packaging.Legal submissions pointed out that under the existing Drug Price Control Order (DPCO) of 2013, the National Pharmaceutical Pricing Authority (NPPA) strictly regulates ceiling prices for roughly 1,000 "scheduled" formulations.However, a staggering 82 per cent of medicines in the open market remain classified as non-scheduled, leaving initial launch prices virtually unchecked.

This regulatory vacuum allows manufacturers to assign arbitrarily inflated MRPs.Justice Mehta questioned the rationale behind permitting such massive margins, noting that when a manufacturer offloads a drug at 10% of its final sticker price, the system actively preys on those with no other choice.

Strain on Public Exchequers and State Schemes

Beyond individual financial ruin, the bench highlighted how un-capped retail margins directly bleed taxpayer-funded public health initiatives.When corporate hospitals and institutional buyers procure medicines at inflated rates and later claim reimbursements through state-backed programmes like Ayushman Bharat, the public exchequer bears the brunt.

"Hospitals are buying medicines at these prices and then reimbursing from the government. It's ultimately taxpayer's money. There is a clear-cut case of fraud," the bench observed.

While Senior Advocate Kapil Sibal, appearing for the Indian Pharmaceutical Alliance, argued that manufacturers do not retain these steep margins and that retailers capture the lion's share of profits, the bench countered that manufacturers ultimately dictate the baseline MRP.Meanwhile, Additional Solicitor General KM Nataraj, representing the Union government, maintained that the administration views the matter constructively and remains open to system-wide improvements.

The Supreme Court has listed the matter for further detailed submissions on September 29, as pressure mounts on regulatory authorities to plug loopholes in India's drug pricing framework.