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 The Bangalore District Chemists and Druggists Association (BDCDA) has now cautioned against unauthorized channels and infiltration of counterfeit medicines into Karnataka. These unauthorized movements often bypass company-appointed CFAs and stockists, posing grave risks including entry of counterfeit or spurious medicines, tax evasion, regulatory non-compliance, MRP manipulation and grey market dilution and undermining ethical chemist operations.
In this regard, the BDCDA has issued an advisory to all concerned to wholesale distributors and retailers to strengthen ethical pharmaceutical distribution.
B. Thirunavukkarasu, president, BDCDA in his communication to the pharma trade said, “Upholding industry trust, patient safety, and ethical distribution, we bring forth several pressing challenges threatening the pharmaceutical trade ecosystem in Karnataka. There are serious concerns on infiltration of unauthorized supplies and counterfeit risk. It has come to our notice that medicines are being routed into Karnataka from external markets through unauthorized distribution channels.
There is a rise of semi-wholesalers, sub stockiest & unauthorized procuring agents. A particularly alarming trend is the rise of semi-wholesalers, sub-stockists, and third-party procuring agents who are operating without official authorization, offering deep discounts and unethical trade incentives to retailers. There is diversion of products across states or sourcing them from untraceable sources, bypassing the company's approved stockist network. This in turn creates price wars that destabilize market integrity. Such practices directly endanger public health, threaten company reputation, and create legal liabilities for all involved, he added.
“It has also been observed that many of these semi-wholesalers, sub-stockists, and third-party procuring agents are becoming instrumental in routing pharmaceutical products to quick commerce and e-commerce platforms, often bypassing the regulatory framework and authorized distribution channels. These online platforms may unknowingly stock diverted or unauthorized medicines due to the lack of traceability in sourcing. This undermines the role of licensed pharmacies, destabilizes price discipline, and significantly increases the risk of unsafe or counterfeit medicines reaching the public,” noted Thirunavukkarasu.
Further, there is also an internal risk – incentivized breaches by sales teams. In several reported cases, there is growing suspicion that certain medical representatives and field managers may be indirectly encouraging unauthorized supply linkages in an attempt to achieve monthly sales targets, push underperforming SKUs (stock keeping units) and qualify for incentives or promotional bonuses. Such field-level actions, even if isolated, erode the supply chain’s integrity and must be addressed urgently through internal audits and accountability mechanisms, he pointed out.
Our call to action is to audit the distribution network, verify all points of sale and route compliance, ensuring no unauthorized third-party agents are procuring or redistributing your products. There is a need to enforce ethical trade terms by discontinuing supplies or incentives to any stockiest found to be enabling semi-wholesalers, sub stockiest and third-party procuring agents or grey market channels. It is necessary to implement digital tracking systems with route validation and real-time visibility, said Thirunavukkarasu.
Issuance of field-level compliance advisories will guide MRs and Sales Managers to report unauthorized market movement. Sensitizing field force on the risks of short-term gain over long-term brand damage is seen necessary. There is need to cooperate with trade associations and authorities, partner with BDCDA to promote awareness, traceability, and ethical trade among retail pharmacists, besides collaborate with regulators when needed to identify, report, or dismantle illegal trade operations, he said.
Pharmaceuticals are life-saving products that demand highest levels of accountability from manufacturing to dispensing. There is a need for assurance on the corrective measures taken internally and provide us with the list of authorized stockiest or distributors in Karnataka, said the BDCDA president.
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