SC flags cancer drug overpricing after Rs 27,000 MRP found against Rs 2,700 retailer price

The Supreme Court on Tuesday expressed concern over the steep pricing of essential cancer medicines, describing it as a “broad daylight dacoity” against patients after noting that one drug had a maximum retail price (MRP) of Rs 27,000 despite being supplied to retailers at Rs 2,700.

“It is very surprising that the authorities who are supposed to take action on this are silent,” a bench of Justices Vikram Nath and Sandeep Mehta said.

The observations were made while the court was hearing two petitions dealing with issues related to medicines, including the need for strict price controls.

The bench said it was “absolutely shocking” that an essential cancer drug had a printed MRP of Rs 27,000 even though its price to retailer (PTR) was Rs 2,700.

“The MRP is 10 times the rate at which it is provided to the retailers. If this is not extortion, then what it is? People sell their houses, ornaments to get treatment,” the bench said.

“There are essential medicines for cancer on which the MRP is printed as Rs 27,000 while the PTR is Rs 2,700. This is absolute rampage and carnage. This is broad daylight dacoity with patients,” it said.

The judges questioned how patients could be subjected to such pricing.

“It is very surprising that the authorities who are supposed to take action on this are silent,” the bench reiterated.

One of the petitioners told the court that his plea also dealt with the issue of registered medical practitioners prescribing generic medicines. He said regulating the MRP of medicines was a matter of critical importance.

Additional Solicitor General K M Nataraj, appearing for the Centre in one of the petitions, said the government was not approaching the matter as adversarial litigation.

The bench observed that fixing medicine prices was a major issue and posted the matter for further hearing on September 29.

One of the petitions has sought directions to make drug formulations more affordable by preventing alleged unethical overpricing of essential medicines by pharmaceutical companies and retailers.

It has also sought strict enforcement of price controls under the Drugs (Prices Control) Order, 2013, to prevent violations of the price-fixing mechanism across the drug supply chain and disproportionate profits by retailers through unfair trade practices.

The second petition has sought disciplinary action against medical practitioners for failing to prescribe generic medicines to patients.  (with inputs from PTI)