Government might allow online sale of medicines, based on changing the Drugs Act

In a move that could spell good news to online marketplaces, the government is considering the possibility of sale of medicines online. As of now, selling medicines online is not permitted. Drug regulators had recently come down harshly on websites that were selling medicines. Medical retailers like Apollo, MedPlus and Hetoro have made requests that have prompted the government to consider modifying the Drugs and Cosmetics Act. Possible changes in the Act will permit online sale of medicines.

The process has begun with a subcommittee studying the issue. The Drugs Control General of India has appointed the subcommittee, headed by the commissioner of Maharashtra Food and Drug Administration (FDA), Harshadeep Kamble.

Another wing to the etail world

The modification of the Drugs and Cosmetics Act could open up a new world of opportunities to online marketplaces that are on the constant lookout for ways to keep customers engaged. It will also benefit pharmacy retailers. The commercial drug industry also stands to gain financially in this deal. Pegged at a value of Rs. 90,000 crores, this value will doubtlessly grow substantially if online sales are permitted.

It looks like online sellers have already been selling medicines online, regardless of the regulation, or lack of it. The FDA has said that indiscriminate sale of drugs could lead to more people buying medicines without prescriptions.

Threat to brick and mortar pharmacies?

However, this move could also spell doom for conventional medical retailers who do not have the facilities to take their operations online. JS Shinde, president of the All India Organization of Chemists and Druggists feels that online marketplaces that are backed by solid investments can get a license to sell medicines online, thus putting at risk the livelihood of pharmacies.

On the other hand, physical pharmacies could consider joining hands with online marketplaces in a mutually beneficial partnership. The last mile could be covered by local pharmacies. Some, like Medplus, have already launched their online store. They seem to be doing well too. Medplus chairman Madhukar Gangadi says, “We have been witnessing double-digit growth in online sales.” He feels that selling online helps improve margins faster than physical selling.

If the Act is modified, and online retailers obtain licenses to sell medicines online, it would definitely be a boon for buyers. For sellers too, it will be good news all the way. With a legitimate set of guidelines and licenses in place, things will get clear. We will have to wait for the decision of the government to see where things go.