Story perspectives

Supreme Court presses government to expand drug price controls

By Drooid · Oct 13, 2026, 4:40 AM UTC · How we work

Summary

Supreme Court urges extension

The Supreme Court bench urged the government to extend drug price controls beyond anti-cancer medicines.
Justices Vikram Nath and Sandeep Mehta asked why a 30% margin cap applies only to anti-cancer drugs.
Solicitor General Tushar Mehta announced a 30% trade-margin cap on anti-cancer drug MRPs.
The government affidavit projects 20%-70% MRP reductions and about INR2,500 crore annual savings.
The bench cited a cancer drug bought for INR2,700 sold at INR27,000 MRP.

Summary

Hospital operators' shares tumble

Hospital operator shares fell sharply after Supreme Court hearing on drug price caps.
Trilegal partner Ashwin Sapra warned the 30% margin cap could spill over to therapeutic categories.
Sapra urged policymakers to consult manufacturers, importers, hospitals and patients before expanding trade-margin limits.
He cited cardiac-stent caps that failed to lower patient costs, showing supply-chain side effects.
Apollo Hospitals and Max Healthcare each lost about 3% market value after the hearing.

History

Historical Context

In 2013, India's National Pharmaceutical Pricing Authority set a 30 percent ceiling on the MRP of 108 essential pharmaceutical drugs nationwide. The Ministry of Health and Family Welfare forced manufacturers such as Cipla and Lupin to cut average prices by 25 percent, saving about INR1,000 crore. Supreme Court justices Vikram Nath, Sandeep Mehta and Solicitor General Tushar Mehta now press for a similar 30 percent cap beyond anti-cancer drugs, citing concerns from Apollo Hospitals and Max Healthcare. Repeating the 2013 price-freeze’s supply-chain backlash could force regulators to recalibrate affordability measures, protect patients, and ensure overall market incentives.

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Supreme Court urges extension

The Supreme Court bench urged the government to extend drug price controls beyond anti-cancer medicines.
Justices Vikram Nath and Sandeep Mehta asked why a 30% margin cap applies only to anti-cancer drugs.
Solicitor General Tushar Mehta announced a 30% trade-margin cap on anti-cancer drug MRPs.
The government affidavit projects 20%-70% MRP reductions and about INR2,500 crore annual savings.
The bench cited a cancer drug bought for INR2,700 sold at INR27,000 MRP.

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