Fortis Healthcare, Apollo Hospitals, Max, Medanta shares rise: Should investors buy after 30% cancer drug price cap?
Mint · Pranati Deva ·
Hospital stocks rallied after the government capped trade margins on non-scheduled anti-cancer drugs at 30%, potentially cutting prices by 20–70% and saving patients ₹2,500 crore annually. Brokerages said earnings effects may be manageable but warned that hospital margins could face pressure.
Hospital stocks rallied on Friday after the government decided to limit trade margins on non-scheduled anti-cancer drugs to 30%, a move expected to lower the prices of several cancer medicines by 20-70% and save patients an estimated ₹2,500 crore annually. The decision lifted investor sentiment, although brokerages flagged potential margin pressure and said the full impact on hospital earnings would depend on further details.
Fortis Healthcare shares surged 5.3% to ₹805.15, followed by Manipal Health Enterprises, which gained 4.3% to ₹715.50. Krishna Institute of Medical Sciences advanced 4.2% to ₹716.35, while Max Healthcare Institute rose 4.4% to ₹915. Apollo Hospitals Enterprise shares climbed 4% to ₹7,977.70, and Global Health gained 3.2% to ₹1,317.25.
However, the hospital stocks had fallen over the preceding two weeks after the Supreme Court raised concerns about the disparity between price-to-retailer (PTR) and maximum retail prices (MRP) of essential medicines. It cited an example of a cancer drug carrying an MRP of ₹27,000 against a PTR of ₹2,700.