₹2,700 cancer medicine sold for ₹27,000: Supreme Court questions 10-fold price gap

Raising serious concerns over the absence of price-control mechanisms for essential medicines, Supreme Court sought directions to ensure compliance and action against violators. 

A bench of Justices Vikram Nath and Sandeep Mehta was hearing two petitions that raised drug-related issues, including ensuring strict price control over medicines. "It is very surprising that the authorities who are supposed to take action on this are silent," the SC bench observed. 

The bench also expressed shock after noting that one drug carried an MRP of ₹27,000 despite being supplied to retailers (PTR) for ₹2,700. "There are essential medicines for cancer for which MRP is ₹27,000 and PTR is ₹2,700. That is absolute rampage and carnage and broad daylight dacoity with the patients. How can a patient be cheated for a medicine which the manufacturer sells to the retailer at ₹2,700 and MRP is printed at ₹27,000? It is surprising that the authorities who are supposed to take a decision on this are absolutely silent. We need not spell out the reasons for that," Justice Mehta remarked.

The ten-fold difference prompted the SC to question the existing drug pricing framework and the protection available to patients. Justice Sandeep Mehta described the disparity in the price of cancer medicines as “broad daylight dacoity” and questioned why patients should have to pay such a large amount for medicines that reportedly reach retailers at a fraction of the printed price. 

"When patients are taking treatment under the Ayushman Bharat scheme, this whole price has to be paid by the taxpayers. 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," BarandBench reported. 

The matter has been listed for further hearing on September 29.