Hospital stocks slip after SC query on steep cancer drug markups
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,...
By ET Bureau |
Agencies
The BSE Hospitals Index fell 5%, with major hospital chains among the biggest losers.
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.
Read more: GIFT City eyes direct listings without IPO to deepen equity market, says IFSCA's Pradeep Ramakrishnan
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%.
Read more: Nithin Kamath reveals Zerodha's leadership secret: Why the broker rarely hires outsiders for top jobs
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.
Read more: GIFT City eyes direct listings without IPO to deepen equity market, says IFSCA's Pradeep Ramakrishnan
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%.
Read more: Nithin Kamath reveals Zerodha's leadership secret: Why the broker rarely hires outsiders for top jobs
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.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Fortis, Apollo, other hospital stocks slump up to 10% in 2 days after SC questions steep markups. Buying opportunity?ADVERTISEMENT
