Centre Caps Trade Margins on Anti-Cancer Drugs at 30% of MRP; Supreme Court Seeks Wider Review of Medicine Pricing

The Centre has informed the Supreme Court that it has decided to cap trade margins on anti-cancer medicines at 30 per cent of their maximum retail price (MRP). Meanwhile, the apex court has called for a broader review of medicine pricing across the pharmaceutical sector.

Solicitor General Tushar Mehta, appearing for the Union government, told a bench comprising Justices Vikram Nath and Sandeep Mehta that the Centre would notify a list of cancer medicines to which the proposed trade margin cap would apply.

Mehta submitted that the list could be periodically revised to include additional anti-cancer drugs, depending on market developments and public health considerations. However, inexpensive medicines would be excluded from the proposed measure.

The development comes after the Supreme Court repeatedly raised concerns over the significant disparity between the prices at which medicines are supplied to retailers and the MRP printed on their packaging. The court expressed concern about the financial burden such price differences place on patients and highlighted the need for an effective regulatory framework.

However, the bench led by Justice Vikram Nath questioned whether limiting trade margins on anti-cancer medicines alone would address the wider problem of excessive margins on other medicines and medical devices.

During the hearing, the Supreme Court cited the example of an Indian-made cardiac stent supplied to retailers for around ₹5,000 but carrying an MRP of 25,000. The bench questioned the justification for such a substantial price difference. In response, Solicitor General Tushar Mehta stated that cardiac stents were already subject to price caps.

The Supreme Court has scheduled the matter for further hearing on October 27, as it continues to examine concerns surrounding medicine pricing and the need for wider regulatory measures across the pharmaceutical sector.