Kerala HC says high drug prices may warrant Section 100 intervention
The Kerala High Court said exorbitant medicine prices can justify invoking Section 100 of the Patents Act, which enables government use of patented inventions. The court left the final call to the Centre, creating a policy signal for drugmakers and pharmacy retail.
The development
Kerala High Court said exorbitant drug prices can trigger Section 100, while leaving the final decision to the Centre.
The numbers
- Section 100
Why it matters to operators and investors
Pharmacy retailers should monitor whether the Centre acts under Section 100, as government use of high-priced patented drugs could reshape sourcing, availability and price expectations for select therapies.
What to watch next
- Formal Department of Pharmaceuticals, Health Ministry, or DPIIT review of a named patented medicine.
- A government request for pricing or access submissions from a patent holder.
- Section 100 notification, tender, procurement order, or authorization to a domestic manufacturer.
- Inclusion of expensive patented therapies in PM-JAY, state health schemes, or centralized public procurement.
- NPPA action, revised price-control proposals, or a committee on patented-drug affordability.
The counter-case
The ruling is a policy signal, not an intervention: the Kerala High Court left the decision entirely to the Centre, and Section 100 has high legal, administrative and diplomatic costs. Government use still requires compensation to patent holders, procurement capacity, manufacturing or import arrangements, and a defensible public-purpose rationale. A broad move against high prices is therefore far from imminent and may be limited to exceptional medicines or crises rather than reshaping pharmacy retail economics.