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Hospital stocks face pressure as Supreme Court reviews cancer drug mark-ups
The Supreme Court is set to hold its next hearing on October 12, after questioning why a 16% trade margin for scheduled drugs is not extended to non-scheduled cancer medicines.
Hospital-company stocks have come under pressure after the Supreme Court raised concerns about high mark-ups on cancer medicines and is hearing a petition related to drug pricing, according to LiveMint Markets.
The court asked the central government why a 16% trade margin for scheduled drugs cannot be extended to non-scheduled drugs, with investors likely to focus on the next hearing scheduled for October 12.
Earlier, Maharashtra’s Food and Drugs Administration wrote to the Department of Pharmaceuticals after finding large mark-ups on medicines and other consumables sold through hospital pharmacies during a survey, and it sought price monitoring.
The Maharashtra FDA’s survey reportedly found mark-ups of more than 28 times on intravenous in what it identified as hospital pharmacy sales.