The Union government on Monday 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. Solicitor General Tushar Mehta conveyed the decision to a bench of Justices Vikram Nath and Sandeep Mehta, stating that the Centre will notify a specific list of cancer drugs covered by the new limit.

The government indicated that this list of anti-cancer medicines can be updated from time to time. Updates will depend on market conditions and public health needs, while inexpensive drugs will remain outside the capped category. The step follows repeated concerns raised by the Supreme Court about large gaps between the prices at which medicines reach retailers and the maximum retail prices marked on them. These gaps have added to the financial pressure faced by patients and highlighted the need for stronger price controls.

During the hearing, the bench asked whether limiting trade margins only on cancer drugs would solve the broader issue of high margins on other medicines and medical devices. The judges pointed to an Indian-made cardiac stent that reaches retailers for around Rs 5,000 yet carries a maximum retail price of Rs 25,000, seeking justification for the difference. Solicitor General Mehta replied that stents are already under separate price caps.

The Supreme Court has scheduled the next hearing in the matter for October 27. The move aims to ease costs for patients requiring anti-cancer treatment by controlling the margins charged in the supply chain.

(AIR)