Karnataka Health Minister Flags Huge Markups on Cancer, Kidney and AIDS Drugs

Karnataka's Health Minister has flagged steep markups on medicines used to treat cancer, kidney disease and AIDS, stating that some of these drugs are sold at as much as 70 times their procurement cost.

The Minister has called for a national-level study to examine how prices build up along the supply chain for high-value medicines, medical devices and consumables. The proposed exercise would compare four figures for each selected item: the printed maximum retail price (MRP), the manufacturer's or importer's price, the hospital's net acquisition price, and the amount ultimately billed to the patient.

According to the Minister, the gap between what institutions pay to procure these products and what patients are charged at the point of care can be very large. The concern covers not just cancer, kidney and AIDS drugs but also selected high-value devices and consumables used in treatment.

By tracking the four price points together, the proposed study would aim to show where along the chain the cost escalates — from the manufacturer or importer, through procurement by hospitals, to the final bill raised on the patient. The Minister's demand places the issue of drug and device pricing before the national policy agenda, with a focus on transparency in how treatment costs are arrived at.