Government admits problem of exorbitant pricing of drugs in SC for first time

A bench of Justices Vikram Nath and Sandeep Mehta said there was no rationale for controlling the price of a few scheduled medicines and allowing the rest to be sold at inflated prices as all medicines are essential. It suggested a uniform rule limiting the MRP to not more than 16% above the price to the retailer (PTR).

NEW DELHI: With Supreme Court toughening its stand against poor patients being forced to pay exorbitant prices for medicines, govt on Tuesday admitted that there was a problem and assured the court it would make efforts to address it.A bench of Justices Vikram Nath and Sandeep Mehta said there was no rationale for controlling the price of a few scheduled medicines and allowing the rest to be sold at inflated prices as all medicines are essential. It suggested a uniform rule limiting the MRP to not more than 16% above the price to the retailer (PTR).

SG Tushar Mehta told SC that he had discussed the issue with official concerned. Govt was not taking an adversarial stand on it, he said, seeking time for further consultations to find a solution.

“We will have to find a way out. Some way that balances equities... let me sit with officers and then respond,” he said.The court said taxpayers’ money was also wasted because of exorbitant medicine prices as corporate hospitals obtain full reimbursement for inflated MRPs when patients undergo treatment under govt-sponsored welfare schemes, with the money being paid from the exchequer.“It affects society. Pharma companies are not bothered about it. Why do they fix MRP at high prices? This is carnage... Corporate hospitals are not going to spare anyone, and they will charge the price at MRP. Why should common man suffer like this?” SC asked.After the hearing, the SC adjourned the case for Oct 12.