Why Is The Health Ministry Considering To Ban All e-Pharmacies?

DGCI has sent notices to e-pharmacy companies including Tata 1mg, NetMeds, MediBuddy, Practo, Frankross, Apollo, Amazon, Flipkart, and others.

According to a high source, the Union Ministry of Health is considering closing the numerous digital pharmacies that have been operating successfully across the nation because of worries about the potential for abuse.

After issuing show-cause letters to 20 or so online pharmacies, including Tata 1mg, Amazon, Flipkart, NetMeds, MediBuddy, Practo, Frankross, and Apollo, among others, the Drug Controller General of India (DCGI) — the nation’s drug regulator — made the latest move.

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A top official gave a detailed explanation of the factors that led to such sober analysis and stated there are at least three major issues with the industry.

The source stated that there are three issues with e-pharmacy: data collection and misuse by pharmaceutical companies, the emergence of antimicrobial resistance as a result of uncontrolled consumption, and aggressive pricing that would render traditional retail pharmacies unprofitable.

According to ministry officials, 12.5 lakh retail pharmacies will lose up to 30% of their revenue as a result of the steep discounts offered by e-pharmacies, which might put the interests of the general public in the hands of a few groups of businesses that operate in the online space.

“You may make a business unsustainable without shutting it down. E-pharmacies must be banned in order to protect the interests of both customers and retailers, the same source stated. Losing 30% of revenue will leave both groups vulnerable to them.

Importantly, on February 8th, the Drug Controller General of India issued a show cause notice to online pharmacies, requesting a response within 48 hours as to why no action should be done against them for violating regulations. The letter made it clear that it was against the 1940 Drugs and Cosmetic Acts to sell medications online.

According to a KPMG report, there are about 50 e-pharmacies in India, and in 2020, sales from these businesses in India amounted for 14% of all income from e-pharmacies in the Asia Pacific region.

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