Shares of diagnostic labs correct after SC orders free coronavirus testing at private labs

Shares of three private diagnostic labs shed 0.08% to 4.36% after the country's apex court reportedly said that tests relating to Covid-19 whether in approved government laboratories or approved private laboratories shall be free of cost.

Thyrocare Technologies (down 4.36%), Metropolis Healthcare (down 1.51%) and Dr. Lal PathLabs (down 0.08%) declined.

A two-judge bench, comprising Justices Ashok Bhushan and S. Ravindra Bhat, agreed with the petitioner that permitting private labs to charge Rs 4,500 for screening and confirmation of covid-19 may make it unaffordable to a large section of India's population, and individuals cannot be denied their right to test themselves for covid-19 because of lack of money.

The court said COVID-19 tests must be carried out only in National Accreditation Board for Testing and Calibration Laboratories (NABL)-accredited Labs, or any agency approved by the World Health Organization (WHO) or Indian Council of Medical Research (ICMR).

The apex court, however, said that it will consider later whether private laboratories are entitled to any reimbursement of expenses, the reports concluded.

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