The Supreme Court of India on Tuesday denounced a tenfold markup on a cancer medication sold by hospitals and urged the government to impose a uniform 16 percent profit margin on all medicines. A two‑judge bench comprising Justices Vikram Nath and Sandeep Mehta described the situation as “carnage” and said the common man bears the brunt of the practice [F1](https://www.indiatoday.in/india/story/supreme-court-cancer-drug-markup-uniform-16-percent-medicine-margin-3006132-2026-09-30?utm_source=rss).
The court heard petitions related to the regulation of drug prices, generic prescribing and controls on medical devices under the Drugs (Prices Control) Order, 2013 [F5]. During the hearing, the justices questioned the Centre about the policy that forces patients to purchase medicines from hospital‑run chemists, noting that this requirement disadvantages patients, especially those receiving treatment under government schemes [F2][F11][F12].
The bench highlighted a specific case in which an essential cancer drug carries a maximum retail price (MRP) of Rs 27,000 while its price to retailers (PTR) is only Rs 2,700—a tenfold increase [F3][F9]. Justice Mehta asked, “Why this distinction?” and warned that such pricing practices ultimately hurt taxpayers [F7][F8][F17].
Solicitor General Tushar Mehta, appearing for the Centre, acknowledged the issue and said the government would discuss it with officials, adding that the pharmaceutical sector appeared indifferent to the problem [F4][F10][F6]. He also raised concerns that patients might doubt the authenticity of drugs offered at the lower price, fearing they could be spurious [F15].
Justice Mehta further urged the government to examine why corporate hospitals compel patients to buy medicines from their own pharmacies, noting that patients who obtain drugs elsewhere may be denied treatment [F11]. He reminded the court that every medicine falls under the Essential Commodities Act, yet the rationale for fixing prices at such high margins remains unclear [F13][F14].
The bench concluded that the issue affects a large segment of society, emphasizing that both pricing and the ethical conduct of medical practitioners require thorough scrutiny [F19]. The justices pledged to examine the matter comprehensively [F18].
The Supreme Court’s intervention signals heightened judicial scrutiny of pharmaceutical pricing and hospital pharmacy practices, with the court urging the Centre to consider a standardized 16 percent margin to curb excessive markups.
Sources
India Today – “Supreme Court flags 10x cancer drug markup, seeks uniform 16% margin” (September 30 2026) – https://www.indiatoday.in/india/story/supreme-court-cancer-drug-markup-uniform-16-percent-medicine-margin-3006132-2026-09-30?utm_source=rss
Source: India Today – India
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Story synopsis gathered from: India Today – India — source
