SC pulls up Centre over soaring medicine costs
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The Supreme Court expressed concern over the government's role in allowing steep medicine prices to persist. Justices Vikram Nath and Sandeep Mehta questioned the justification for significant price discrepancies faced by patients. The court highlighted a lack of accountability regarding how drug manufacturers benefit from inflated prices. Government representatives stated that regulatory measures should not encompass the entire drug pricing ecosystem.
New Delhi: The Supreme Court on Tuesday pulled up the government for allowing steep medicine prices, saying that this was happening before its eyes.Asking the government to explain why medicines reach patients at prices far above what retailers pay for them, and why the country's drug-pricing framework appeared to work for drug manufacturers rather than the "helpless" patients, a bench comprising Justices Vikram Nath and Sandeep Mehta said "the government is allowing all this to happen".
Reiterating that the Centre should cap trade margins at 16% of the MRP charged on the supply and sale of all drugs, the bench said: "You are playing with the lives of people. Don't treat it as commerce, you are only talking of economic policy and commerce."
"When you talk of patients, do you think with capitalist thinking?" asked the court, adding that India was not a country where there was such a huge amount of social stability that one expects.
While reserving its decision on the sale of essential drugs at inflated prices, the court asked the government for justification for a 300-400% difference on the price that a retailer pays and the MRP. "Where does the money go? Who does it benefit? What is the justification for the difference in prices," it asked, adding: "You are not able to come up with an answer. We have asked you 30 times".
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"What does the manufacturer get out of the difference? Why is the entire system working to help these people (manufacturers)," the bench asked. It noted that there were pending recoveries of ₹8,700 crore against pharma firms against the difference they charged from consumers on drugs. Additional solicitor general Aishwarya Bhati, appearing for the government, said the government's policy was that the entire ecosystem should not be brought under regulatory control.
The Centre is constantly calibrating drug prices, she said. "India already has one of the lowest prices in the world. The dichotomy is there which we are addressing from time to time," she said. "Your calibration is too wayward," the bench said, responding to her argument.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
