Centre decides to cap Cancer drug margins at 30%

New Delhi,October 12
The Centre today informed the Supreme Court that it has decided to regulate trade margins on anti-cancer medicines by capping them at 30 per cent of the maximum retail price (MRP), while the apex court called for a broader review of medicine pricing across the pharmaceutical sector.

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

The Centre’s second highest law officer submitted that the list could be periodically updated to include additional anti-cancer medicines, depending on market developments and public health considerations, while excluding inexpensive drugs.

The development came after the apex court repeatedly questioned the substantial disparity between the price at which medicines are supplied to retailers and the MRP printed on them, raising concerns over the financial burden on patients and the need for an effective regulatory framework.

However, the Justice Vikram Nath-led Bench questioned whether the proposed measure would address the wider problem of excessive trade margins on medicines and medical devices beyond the anti-cancer segment. During the hearing, the top court cited the example of an Indian-made cardiac stent supplied to retailers at around Rs 5,000 but carrying an MRP of Rs 25,000, and questioned the justification for such a disparity.

SG Mehta responded that stents were already subject to price caps. The apex court has now posted the matter for further hearing on October 27.