look news india
The government, Central Drugs Standard Control Organization (CDSCO) and the Health Ministry are taking a tough stance on the rapidly growing digital healthcare and e-pharmacy sector in the country. Strict ban and notice action have been taken against e-pharmacy platforms that have been operating without statutory regulations and valid online licensing system for a long time. At present there is no separate statutory and codified law notified for online sale of medicines under the Drugs and Cosmetics Act, 1940 and Rules 1945. This has raised serious legal and public health concerns over the sale of scheduled drugs (Schedule H, H1 and
A continuous protest is being lodged against e-pharmacy companies by ‘All India Organization of Chemists and Druggists’ (AIOCD), the largest organization of traditional medical stores and drug sellers in India.
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Uncontrolled Discounts and Market Impact: Offline chemists allege that big e-pharmacy companies are destroying the business of local medicine shops by giving huge discounts ranging from 20% to 70% (Predatory Pricing) on the basis of foreign investment.
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Risk of drug abuse: There remains a risk of narcotics, antibiotics and habit-forming drugs for depression being ordered through online channels without strict verification.
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Interim orders of the courts: In the PILs filed in Delhi High Court and other High Courts, instructions have been given to completely ban illegal online sale of medicines and implement strict E-Pharmacy Rules.
On the other hand, the country’s major online pharmacy companies say that they act only as a digital platform or ‘intermediary’.
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Supply from Licensed Retailers: The companies claim that 100% of the medicines sold through them are dispatched from local medical stores licensed by the State Food and Drug Administration (State FDA) and the bills are prepared only under the supervision of registered pharmacists.
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Life-saving support in remote areas: Online home delivery of medicines helps the elderly, seriously ill patients and people living in remote rural areas in getting affordable and authentic medicines at the comfort of their homes.
Under the proposed regulatory framework being prepared by the Health Ministry, instead of completely stopping online medicine sales, there is a preparation to bring them under strict rules:
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Central Registration Mandatory: Only those e-portals will be able to sell medicines, which are registered with the Drug Controller General of India (DCGI).
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Complete ban on Schedule X and drugs: Online sale of any type of intoxicant, tranquilizer and serious psychotropic drugs will be completely banned.
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Stringent Prescription Verification: It will be mandatory to upload the verified digital prescription of the Registered Medical Practitioner (RMP) with every order and maintain the record.
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Ban on misleading advertisements: There will be a provision of strict penalty for giving exaggerated and misleading discounts and advertisements to increase the sale of medicines.
Regulatory uncertainty and legal strictures have had a direct impact on the valuations and capital inflows of startups operating in the online healthcare and medicine delivery sector. Many companies are having to change their business model and adopt hybrid model (online + offline stores). Market experts believe that until the government finalizes and notifies the official e-pharmacy policy, legal and administrative action will continue against unauthorized platforms violating the rules.