Park Medi World shares fall 6.5% as Supreme Court questions medicine margin cap

Park Medi World shares fell as much as 6.5% on October 12 after the Supreme Court hearing on medicine trade margins, according to October 12 share-price data. The hearing focused on the limited scope of the Centre's trade-margin measure for anti-cancer medicines, with the court questioning why similar controls could not cover the wider drug market.

Park Medi World shares fall as the court questions wider medicine controls

October 12 Park Medi World share-price data showed among the hospital operators whose shares declined during the session, falling as much as 6.5%.

During the hearing, the Supreme Court asked the Centre why it could not exercise control over the entire drug market.

The court also questioned how patients benefit when manufacturers determine medicine prices.

Apollo and Max Healthcare decline 3% each

Apollo Hospitals and Max Healthcare each fell as much as 3% during the October 12 session, according to share-price data.

Fortis Healthcare fell as much as 3.5% during the session, while Aster DM Quality Care fell as much as 2.8%, the same data showed.

The Centre limits its measure to non-scheduled anti-cancer drugs

After describing steep mark-ups on cancer medicines sold at hospitals as a “carnage”, the Supreme Court had proposed a uniform 16% margin cap on all medicines.

The Centre subsequently introduced a 30% cap on trade margins for non-scheduled anti-cancer drugs. The Centre said these medicines fall outside the regular price-control list, so its measure does not adopt the court's proposed cap across all medicines.

During the October 12 hearing, the government told the court that drug-pricing policy must balance affordability and availability.

The Centre also said it was not seeking to regulate the entire pharmaceutical market.

Cancer-drug list will exclude inexpensive medicines

The Centre said it would announce a list of drugs approved for cancer treatment to which the trade-margin cap would apply.

According to the Centre, the list will include all approved cancer-treatment drugs except those that are inexpensive.

The Centre said the list could be updated periodically to add anti-cancer medicines in response to market developments and public-health considerations.

Supreme Court schedules the next hearing for October 27

The Supreme Court will hear the drug-pricing case again on October 27.