The High Court has ruled that the government—not pharmaceutical companies—must set prices for all life-saving medicines under the Drug and Cosmetics Act 2023.

In its full verdict, the court criticised the long-standing practice of allowing manufacturers to determine prices, noting that essential drugs cannot be treated like optional consumer goods.

The HC also ordered authorities to create a clear guideline for listing life-saving medicines and fixing their prices.

The ruling came in response to a petition of Human Rights and Peace for Bangladesh (HRPB) challenging a 1994 health ministry circular that limited government-set prices to 117 drugs, allowing companies to price the rest.

The court declared the circular illegal, restoring the government’s authority last defined in a 1993 gazette that fixed prices for 739 medicines.

Following the verdict, prices of essential medicines for conditions like diabetes, heart disease, and kidney ailments must now be set solely by the government.