SUPREME COURT QUESTIONS STEEP CANCER DRUG MARKUPS AND HOSPITAL PRICING PRACTICES.

September 29, 2026

The Supreme Court has raised serious concerns over the high prices charged for essential cancer medicines, questioning how drugs purchased by retailers at substantially lower prices can carry exceptionally high maximum retail prices.

During the hearing, the court considered an example in which a cancer medicine available to retailers for around ₹2,700 was sold with a printed MRP of ₹27,000, representing a tenfold difference. The bench questioned the regulatory framework that permits such a wide gap and asked the Centre to examine whether a uniform margin could be applied to medicines.

The proceedings form part of petitions seeking stronger regulation of medicine prices, including concerns over non-scheduled drugs that are not subject to the same ceiling-price mechanism as medicines covered under Schedule I of the Drugs (Prices Control) Order. The court also examined concerns surrounding hospital pharmacies, trade margins and the availability of lower-cost alternatives.

The court further noted that excessive medicine prices can have implications for government-funded healthcare schemes. Where hospitals purchase medicines and subsequently receive reimbursement through public health programmes, higher costs can ultimately increase expenditure from public funds.

The proceedings have also brought attention to the role of the National Pharmaceutical Pricing Authority and the transparency of pricing information available to patients and the public. The broader petitions seek measures to prevent excessive pricing and improve access to affordable medicines.

The Supreme Court's intervention places the regulation of medicine prices and hospital pharmacy practices under renewed judicial scrutiny, with further proceedings expected to examine the existing pricing framework and possible measures to protect patients from excessive treatment costs.