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Supreme Court Questions "Extortionate" Cancer Drug Pricing: ₹2,700 Medicine Sold for ₹27,000 MRP
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CNBC TV18•22-09-2026, 20:53
Supreme Court Questions "Extortionate" Cancer Drug Pricing: ₹2,700 Medicine Sold for ₹27,000 MRP
- •The Supreme Court questioned the vast difference between the Price to Retailer (PTR) and Maximum Retail Price (MRP) of medicines, citing a cancer drug sold at ₹2,700 PTR with a ₹27,000 MRP as "extortion."
- •The court is examining petitions on medicine pricing, generic drugs, medical devices, and prescription practices, focusing on medicines outside government price controls.
- •Petitioners highlighted that approximately 82% of medicines by volume and 83% by market value are non-scheduled, lacking similar regulatory limits on initial pricing.
- •Concerns were raised about hospitals requiring patients to buy medicines from their own pharmacies at full MRP, potentially burdening poorer patients and increasing government healthcare reimbursements.
- •The Union government stated it is not treating the proceedings as adversarial and will consider improvements, while the Indian Pharmaceutical Alliance argued retailers earn large margins, though the court noted manufacturers fix MRPs.
Key Questions Answered
The Supreme Court questioned why a cancer medicine sold to retailers for ₹2,700 carries a maximum retail price (MRP) of ₹27,000, calling the massive disparity "extortion" and "broad daylight dacoity."
Around 82% of medicines by volume and roughly 83% of the market by value fall outside the scheduled, price-controlled category under the Drugs (Prices Control) Order, 2013.
The Supreme Court has posted the matter for further hearing on September 29, when it will hear additional submissions from the Union government and senior counsel Kapil Sibal.
