NEW DELHI/MUMBAI
(Reuters) - India’s drugs regulator has asked all states to enforce a court
directive prohibiting online medicine sales, a senior government official said
on Wednesday, raising industry concerns it could disrupt some online businesses.
India is yet to finalize regulations for online drug sales, or
e-pharmacies, but the growth of several online sellers such as Medlife,
Netmeds, Temasek-backed PharmEasy and Sequoia Capital-backed 1mg has threatened
traditional drug-store businesses.
The Delhi High Court in
December last year said the government must ensure online sales are prohibited
for the time being, as it heard a petition from a doctor who alleged
unregulated online sales could lead to abuse of medicines.
K. Bangarurajan, a senior
official at the Central Drugs Standard Control Organisation (CDSCO), said the
federal agency had asked states earlier this year to comply with the court’s
order, and a reminder had now been issued to all authorities.
“State drug controllers are
the regulating authority, they have to implement this ... and if anyone is
dealing (in online sales) they need to take action,” Bangarurajan told Reuters.
The CDSCO’s directive was
sent on Nov. 28 to all states, according to a copy seen by Reuters. It was not
immediately clear what subsequent action states would take.
Sreenidhi Srinivasan, a
senior associate at law firm Ikigai Law, said the Delhi court order had raised
concerns in the industry and any bans by state drug controllers could hurt
online sellers.
Trader groups have protested
for years against e-pharmacies, saying they challenge their businesses and
could allow medicines to be abused by being sold without proper verification.
They also allege e-pharmacies make it easier to use one prescription to buy
medicines multiple times.
Steep online discounts have
also hit offline businesses, which according to industry estimates recorded
$18.4 billion in retail sales in 2018-19. Sales growth has averaged only 8.2% a
year since 2015-2016, when sales grew by 12.3%.
“Online retailers have been
offering discounts more than our margins,” said Yash Aggarwal, legal head of
South Chemists and Distributors Association in New Delhi.
Some are not worried,
however. Pradeep Dadha, CEO and founder of online e-pharmacy Netmeds, said his
firm was complying with all Indian laws and regulations and business was
continuing as usual.
“All our partner pharmacies
also have the required licenses,” Dadha said.
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