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There can be no two opinions, the nation’s pharmacy market is brimming with activity which is very much evident from the fact that billionaires like Jeff Bezos, Mukesh Ambani and several other big corporate entities have forayed into the fledgling pharmacy sector during the last some years in the country. While some have opted for the e-pharmacy route, some corporate houses have preferred corporate pharmacies and chain pharmacies. Close on the heels of the US-based e-commerce behemoth Amazon’s entry into the sector some years ago, Indian retail giant Reliance Retail has also thrown its hat in the ring. Hoping to exploit a fast-growing e-pharmacy market fuelled by a large base of Smartphone users, Reliance has acquired a majority equity stake in Chennai-based online pharmacy company Netmeds. Earlier, another online pharmacy player PharmEasy had agreed to merge with its smaller rival Medlife. Walmart-owned Flipkart has also forayed into the e-pharmacy space which has over 50 platforms providing services to nearly 22,000 pin codes across the country and employing over 30,000 people. It is apparent that from Amazon to Reliance, major corporate houses have entered the pharmacy race to scale up, consolidate and corner a share of the pharmacy market in the country. As the potential of the pharmacy sector, especially the e-pharmacy, is gradually but steadily unfolding in the country, big players are now vying with each other to get a substantial part of the pharmacy market. But unfortunately, the cut-throat competition among the peers has brought in its wake several unethical trade practices like predatory pricing and indiscriminate discounts. There are reports that while the government licensed brick and mortar retailers are getting 16 per cent margin on scheduled drug and 20 per cent non-scheduled drugs, the e-pharmacies and chain pharmacies are offering 30 to 40 per cent discounts by advertising, in contravention to the provisions of drug norms.
And now, the repercussions of the indiscriminate discounts on drug prices are therefor everybody to see as there are reports that some part of the pharmacy market in the country is flooded with counterfeit and substandard drugs. It is obvious that since the discount pharmacies are resorting to predatory pricing, there are chances of malpractices and sale of poor-quality medicines. The drugs coming to the discount pharmacies may not be through the right channels, and the quality of such drugs cannot be ascertained. Very recently, the Bengal Chemists and Druggists Association has issued a circular stating that the medicine market in the state is now witnessing an increase of 47 per cent in the number of counterfeit drugs in the circulation of medicines. The association has cautioned that if the surge continues, 15 per cent of the total medicines marketed in the state will be counterfeit or spurious very shortly. The whistle blowing by the BCDA cannot be a flash in the pan as several other chemists’ associations and experts in the field have been raising their voice against the discount pharmacies and have been asking the state pharmacy councils to initiate action against the registered pharmacists working in the discount pharmacies. Offering discounts on MRPs is a violation of provisions of the Pharmacy Act, 1948, Chapter 7 & 8 of the Pharmacy Practice Regulations (PPR) 2015 and it is a gross violation of Section 4 of the Competition Act 2002. The drug control authorities should find out the source of procurement of medicines by the discount pharmacies and compare it with that of the common medical shops. There are chances for spurious and counterfeit drugs in the stocks of medicines these discount pharmacies keep in their stores as the sources of procurement is unknown even to the regulators. It is a serious issue as it directly affects the health of the patients. The drug authorities should leave no stones unturned to end this madness in the pharmacy market in the country.
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