India's hospital stocks fell on Wednesday after the Supreme Court questioned steep markups on cancer drugs. The BSE Hospitals Index fell 5% as the court asked the government to probe why hospitals force patients to buy medicines from specific pharmacies. Major chains like Apollo and Fortis saw their shares drop.
Synopsis
In a landmark ruling, the Supreme Court of India highlighted troubling markups on cancer drugs enforced by hospitals, urging a probe into reports of patients being directed to specific pharmacies for their medications. Following this announcement, the BSE Hospitals Index faced a steep 5% drop, leading to notable losses for industry giants like Apollo Hospitals and Fortis Healthcare.
Mumbai: India's hospital stocks came under pressure on Wednesday after the Supreme Court questioned steep markups on cancer drugs and asked the government to examine allegations that hospitals require patients to buy medicines from their own or designated pharmacies.
The BSE Hospitals Index fell 5%, with major hospital chains among the biggest losers. Apollo Hospitals Enterprise declined 5.7%, Fortis Healthcare fell 6.3% and Max Healthcare Institute dropped 5.3%.
According news reports, the Supreme Court asked the central government to probe allegations that hospitals make patients purchase medicines from their own or designated pharmacies, particularly when the drugs carry high markups. The court also questioned markups of as much as 10 times on cancer drugs. It asked whether there should be a uniform 16% margin on all medicines.
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