Hospital stocks slip after SC query on steep cancer drug markups
Summary
The Supreme Court of India has scrutinized steep hospital markups on cancer drugs and reports that patients were directed to specific pharmacies. Hospital stocks fell sharply afterward, with the BSE Hospitals Index dropping 5% and shares of Apollo Hospitals and Fortis Healthcare declining.
The court's scrutiny has turned drug pricing and pharmacy referrals into an immediate financial risk
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Regulatory action could force hospitals to disclose or reduce medicine markups, weakening a significant source of revenue.