India is planning regulations and stringent action on e-pharmacies that include closure of operations, senior Health Ministry officials said.
Apart from legality of the business, regulating operations of such online pharmacies, maintaining patient data privacy and rampant use of prescription drugs have been pointed out as some of the cause of the concern areas.
“The current business model is not something that the Ministry is convinced of. We are weighing in our options include the possibility of closing down e-pharmacies ,” a Ministry official told businessline.
India’s e-pharmacy market was pegged at ₹26 billion in 2021 and is expected to reach around ₹90 billion in 2027 with a CAGR of 22 per cent.
Under DCGI Scanner
The move comes days after the Drug Controller General of India (DCGI) - the country’s drug regulator - sent show-cause notices to 20-odd e-pharmacies that include big names like Tata 1mg, Amazon, Flipkart, NetMeds, MediBuddy, Practo, Frankross, Apollo, among others.
The Drugs and Cosmetics Act, 1940 regulates the import, manufacturing and distribution of drugs in India.
In its notice, the agency said, sale or stock or exhibit or offer for sale or distribution of drugs through online, internet or other electronic platforms “without a licence have potential impact on quality of drugs and pose risk to public health” as there arises a cope of misuse of drugs through self-medication and indiscriminate use of the drugs.
“In view of the above, you are hereby asked to show cause within 02 days from the date of issue of this notice, why action shall not be taken against you for sale, or stock or exhibit or offer for sale or distribution of drugs....” the notice read.
Legal battle looms
The Health Ministry official said, while there was a two-day notice period, many of the 20 e-pharmacies have not yet responded. In the absence of a response, action can be taken.
According to Ministry of Health officials, these online pharmacies and platforms were found to be selling drugs that are not allowed for retail sale without proper prescriptions from registered medical practitioners.
“We are not ruling out a long drawn legal battle with some of these operators,” the official said.
The proposed New Drugs, Medical Devices and Cosmetics Bill, 2022, brought e-pharmacies under its ambit and mandates online pharmacies to have a licence to continue operating as usual. Online pharmacies would also not be permitted to sell medical devices without a licence, if the bill is passed into law.
The All India Organisation Of Chemists and Druggists has already demanded action against online pharmacies and threatened to hold nationwide strike against them.