Supreme Court slams massive markup on cancer drugs

The Supreme Court of India has criticized the massive pricing discrepancies in essential medicines, specifically oncology drugs, describing the practice as ‘broad daylight dacoity’ and ‘daylight robbery.’ A bench comprising Justice Vikram Nath and Justice Sandeep Mehta noted that some cancer drugs are supplied to retailers at a Price to Retailer (PTR) of INR 2,700 but carry a Maximum Retail Price (MRP) of INR 27,000.

The Court highlighted a ‘clear-cut case of fraud’ regarding how corporate hospitals manage these costs. Under government health schemes such as Ayushman Bharat (PMJAY), hospitals often receive reimbursements for treatments. Justice Mehta observed that when hospitals charge the full, inflated MRP—often requiring patients to purchase from the hospital’s own stores—the cost is ultimately borne by taxpayers through public funds.

The proceedings also addressed the silence of regulatory authorities in preventing such pricing abuse and the exploitation of vulnerable patients. The court expressed concern that these practices drain public healthcare resources and exploit the gap between manufacturer pricing and retail labels.