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 The Chamber of Pharma Entrepreneurs Association (CPEA), headquartered in Madurai, Southern Tamil Nadu, has urged the union government to issue distinct licenses for pharmaceutical marketers, emphasizing their newly mandated responsibility for drug quality.
The association in this regard has passed a resolution at its recent annual general body meeting (AGM) held at the Mepco Mini Auditorium in Madurai.
Unlike traditional manufacturers or distributors, pharma marketers promote their own brands, primarily through contract manufacturing agreements with manufacturing companies. They argue that since their members exclusively market pharmaceuticals, the government should grant them a separate identity under a unique licensing system.
According to L.S. Ganesh, general secretary of CPEA, this demand stems directly from the amendment to the Drugs and Cosmetics Act in 2020, which took effect on March 1, 2021. This amendment legally designates pharmaceutical marketers as equally responsible for the quality aspects of medicinal products, alongside manufacturers. Therefore, Ganesh asserts, marketers should be granted a special category license to conduct their business, similar to manufacturers, distributors, wholesalers, and retailers.
Ganesh further explained to Pharmabiz that the amended 2020 rule imposes new responsibilities on drug marketers, including specific agreements and the mandatory display of the marketing company's name and address on product labels. This clause, he stressed, underscores the need for a separate license. The association has already discussed this issue with the director of drugs control in Tamil Nadu and plans to forward a memorandum to both the central government and the CDSCO in New Delhi through the DC office.
"We promote our own brands; we do not market other companies' products. We contract with manufacturing companies for our own brands and then market them. So, we want the government to recognize marketing companies as a separate segment in the supply chain and issue exclusive licenses. Currently, we operate under licenses 20b and 21b, which are designated for wholesalers," Ganesh stated.
In addition to their licensing push, CPEA has also recently written to the GST Council, advocating for a simplified GST structure for pharmaceuticals and a reduction in the goods and services tax. Ganesh believes that a reduction to 5 percent GST would enable them to sell medicines to the public at lower prices, improving affordability.
The CPEA is also actively expanding its reach across Tamil Nadu, with new members joining from various districts. Committees are soon to be formed in Chennai, Trichy, and Sivakasi. In Madurai alone, CPEA has 210 active members.
Highlighting their social and charity work, he said, the association is deeply involved in charitable activities. Recently, CPEA awarded scholarships to three students for their higher studies. The association also has an ambitious plan to establish a hospital in a Madurai village within the next two years, providing free outpatient treatments to the public. Five acres of land have already been identified for this project.
Furthermore, CPEA aims to bring all its members under insurance coverage and is currently in discussions with health insurance companies. The association already operates a benevolent scheme, providing financial assistance of Rs. two lakhs to the families of deceased members and Rs. 25,000 to accident victims.
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