Karnataka has urged the Centre to extend price controls on expensive medications used to treat heart and kidney diseases, beyond the anti-cancer drugs already covered by the new measure.
The demand was made after the Centre decided to cap trade margins on non-scheduled anti-cancer medicines at 30% of their maximum retail price (MRP). Welcoming the move on Saturday, the state government said similar safeguards should cover other essential drugs to make treatment more affordable for patients.
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The new measure applies to non-scheduled anti-cancer medicines, which are not covered by the existing list of drugs with government-fixed price ceilings.
The National Pharmaceutical Pricing Authority (NPPA) has approved the 30% trade-margin cap in principle. However, the final list of medicines that will come under the measure is yet to be drawn up.
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Karnataka flags steep gaps in medicine prices
The state's demand follows inspections by Karnataka's Food Safety and Drug Administration, which identified substantial differences between the procurement costs and printed MRPs of medicines supplied to hospitals.
The investigation flagged 253 drugs with significant pricing discrepancies. In some cases, the MRPs were more than 10 times, and in certain instances over 52 times, the reported landing costs.
The state has alleged that hospitals procure medicines at discounted institutional rates but charge patients at or near the printed MRP.
Karnataka has also sought greater transparency in hospital billing, including disclosure of medicine procurement costs alongside MRP.
Its wider proposals include regulating margins on high-value medicines and medical consumables, expanding the list of drugs under price control and strengthening monitoring mechanisms.
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Supreme Court observations add to pricing debate
The state's appeal comes after the Supreme Court questioned why the MRP of essential medicines, including cancer drugs, could not be restricted to 16% above the price to retailer, as applicable to scheduled medicines under the Drugs (Prices Control) Order, 2013, according to the state government's statement.
Karnataka is now seeking broader central intervention so that patients requiring costly cardiac, kidney and other life-saving treatments can also benefit from stronger price safeguards.
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