PROJECT TITLE: STUDY ON PHARMACIES IN INDIA WITH

SPECIAL EMPHASIS ON E-PHARMACIES

Project Submitted to the Department of Accounting and Finance,

Goenka College of Commerce & Business Administration, Kolkata.

In partial fulfilment for the Degree of Bachelor of

Commerce (Honours) in Accounting & Finance
By
SAHIL BANSAL
(Registration No.: 145-1111-0158-21)

Under the supervision of Prof. Antara

Thar Department of Accounting &
Finance
 ANNEXURE- 1A

Supervisor’s Certificate

This is to certify that Ms. Sahil Bansal, a student of B. Com Honours in

Accounting & Finance of Goenka College of Commerce & Business
Administration under the University of Calcutta has worked under my
supervision and guidance for his Project Work and prepared a Project
Report with the title ‘STUDY ON PHARMACIES IN INDIA WITH
SPECIAL EMPHASIS ON E-PHARMACIES’ which she is submitting is
his genuine and original work to the best of my knowledge.

(Signature with

Stamp) Prof Antara Dhar

Supervisor
Department of Accounts & Finance
 ANNEXURE- 1B

Student’s Declaration

I hereby declare that the Project Work with the title ‘STUDY ON
PHARMACIES IN INDIA WITH SPECIAL EMPHASIS ON E-
PHARMACIES’ submitted by me for the partial fulfillment of the degree
of B. Com Honours in Accounting & Finance under the University of
Calcutta is my original work and has not for the fulfillment of the
requirement of any course of study. I also declare that no chapter of this
manuscript in whole or in part has been incorporated in this report from any
earlier work done by others or by me. However, extracts of any literature
which has been used for this report have been duly acknowledged
providing details of such literature in the references been submitted earlier
to any other University/Institution.

(Signature with

Stamp) Mr. Sahil Bansal

Registration No.: 145-1111-0158-21
Roll No.: 211145-21-0042
 ACKNOWLEDGEMENT
I am overwhelmed in all humbleness and gratefulness to
acknowledge my depth to Dr. Abhijit Dutta, Principal of GOENKA
COLLEGE of COMMERCE & BUSINESS ADMINISTRATION
who helped me to put these ideas well above simplicity and into
something concrete.
I would like to express my special thanks of gratitude to my Prof.
Antara Thar who gave me the idea and opportunity to study on
the topic “STUDY ON PHARMACIES IN INDIA WITH
SPECIAL EMPHASIS ON E-PHARMACIES” which helped me
in doing a lot of research and I came to know about so many new
things.
Any attempt at any level can’t be satisfactorily completed without
the support of my family and friends. I would like my parents and
friends who helped me to reach out to people for gathering different
information as well as data for my research.
 TABLE OF CONTENT
Serial Title Page
Number Number
1. Introduction
1.1 Background of Study 2
1.2 Who exactly is a pharmacist 2
1.3 Literature Review 3
1.4 Research Gap 4
1.5 Objectives of the Study 4
1.6 Data and Research Methodology 4
2. Development of the Pharmacy Sector
2.1 Ancient History 6
2.2 Modern History 6
2.3 Post-Independence Era 7
3. Pharmacies
3.1 Retail Pharmacies 9
3.2 Revenue Model (Retail Pharmacies) 10
3.3 Challenges to Retail Pharmacies 11
3.4 E-Pharmacies 12
3.5 Revenue Model (E-Pharmacies) 13
3.6 Major E-Pharmacy Players 14 - 18
3.7 Advantages 19
3.8 Concerns associated with the functioning of the 20
E-Pharmacies
3.9 Draft Regulations 21 – 22
3.10 Provisions which E-Pharmacy Rules should include 22
3.11 E-Pharmacies in other Countries 23
4. Analysis 24 - 29
5. Conclusion 30
6. Bibliography and Reference 31

V
INTRODUCTION

Page | 1
1.1 Background of Study

E-commerce has experienced exponential expansion across categories as a result of rising internet
usage and the availability of smartphones. People have started buying the majority of their needs
through online platforms, from groceries to clothing.

Due to the ease of being able to shop without leaving the comfort of home, e-pharmacies have
become a potential industry. In 2020, the worldwide e-Pharmacy industry was estimated to be worth
US$ 0.8 billion, of which OTC drugs made up 32% of sales and prescription drugs accounted for
68%. In 2020, the Indian e-pharmacy market had 50 active e-pharmacies and generated 14% of the
total income generated by e-pharmacies in the Asia Pacific region.

The aim of this study is to analyze the current situation of the Pharmaceutical Industry and
thereby ascertain its future prospects.

1.2 Who exactly is a Pharmacist?

A pharmacist is known to have been certified to make, sell or distribute medicine and such
other medicine compounds. He is that person who, in a layman’s terms who is well aware ofthe
medicines, the way they move and interact with the body and also the ultimate results.

Over the last sixty years the pharmacy profession has undergone major changes, transforming into
a concentrated approach to health care.

A pharmacist serves his purpose in the following ways:

 The direct dispensing of medications to customers shall only be carried out by the
licensed pharmacist once the prescription filled by another has been duly checked.

 Proper accounting of the drugs sold shall be retained.

 Upon issuance of a prescription (prescription drug order) and after reviewing the
patient record, a Licensed Pharmacist shall directly start a conversation with each
patient or treatment offered to that patient on matters that will strengthen or optimize
drug therapy. Such conversation shall be in person, wherever possible or by
telephone, and shall include relevant patient care components.

India has over one million licensed professional pharmacists, of which 55 per cent are
actually in community pharmacies, 20 per cent are in the hospital industry, 10 per cent are in
the industrial production of drugs, 2 per cent are in academia and the remainder is in retail
pharmacies.

The Pharmacy Council of India (PCI) is the governing agency responsible for theadministration of
pharmacy and healthcare.

Page | 2
1.3 Literature Review

1. Parkhi, Shilpa and Aman (July, 2022) in their research paper,

“Application of E-Pharmacies in India” aims to identify the
factors that influence customers on choosing between the
various e-pharmacies providing their service in the market.

2. Dr. Tejas N Dave, Dr. Ashvin R Dave, Dr. Ashwin H Parwani,

Dr. Ashish B Joshi, Dr. Rajesh Patel, in their research paper,
“Consumer Perception about EPharmacies in Indian Retail
Pharmaceutical Sector” aims to understand consumer perception
about online pharmacy business.

3. Brinda Sampat and Kali Charan Sabat in their research paper,

“Adoption of online pharmacies in India: an empirical study”
examine the adoption of online pharmacies in India.

4. Himani Singh, A Majumdar and N Malviya in their research

paper, “E-Pharmacy impacts on society and pharma sector in
economical pandemic situation : A Review” focus on the basic
issues and challenges related to online pharmacy and how can it
be beneficial to society and pharma sectors in the pandemic
situation.

5. Mallika Srivastava, Madhur Raina in their research paper,

“Consumers’ usage and adoption of e-pharmacy in India”
aims to identify and empirically validate the various factors
for adoption, usage and intention to recommend e-pharmacy
for purchasing medications by consumers. Consumers’ usage
and adoption of e-pharmacy in India.

6. S. Priya Nair and Anil Middha in their research paper, “A Study

on Knowledge, Perception and Practice of Online Pharmacy
among Young Adults in India” aims to assess the young
consumer’s knowledge and perception towards the use of online
pharmacy services in India.
Page | 3
1.4 RESEARCH GAP

Since E-Pharmaceutical industries have not been established to its fullest

potential in India therefore limited data is available over the internet.
There was a time constraint, due to which I could not gather information
from all the sources and some vital information and data might have been
missed.

1.5 Objectives of the Study

The Objectives of the study are: -
 To analyze the current situation of the
Pharmaceutical Industry and thereby ascertain the
future prospects.
 To present a basic structure of the E-Pharmacy Sector and it’s
functioning.
 To assess the issues in connection with the functioning
of E-Pharmacies.

1.6 Data and Research Methodology

The project undertaken involves a descriptive and exploratory
research method.

SECONDARY DATA

Collection sources: In the preparation of the project, I have

accumulated data from various dissertations, Study materials and
various E-Pharmacy websites.

Analysis Technique: In the preparation of the project, I have used

various data presentation techniques like bar charts, histograms and
line graphs to depict trends.

Page | 4
DEVELOPMENT OF THE
PHARMACY SECTOR

Page | 5
The history of pharmacies can be traced back to the Vedic period which can be seen from the earliest
beginning to 800BC, followed by the Brahmanic period 800BC to 100AD. With the centuries of
development of medicines in Indian history,it has been very hard to monitor and connect the events
of that period.

2.1 Ancient Historical Era

The Ayurvedic Period has been constricted to certain books and manuscripts which were written
by the then two most famous medical practitioners: The Sushruta- the Surgeon and The Charaka-
the Physician. The Indian system of Ayurvedic medicine states that there are only two effects that
medicines can possibly have on the human body i.e., the Heating effect or the Cooling effect. It
was also considered essential to observe the eating habits of the patient in subject.

Then comes the Medieval Period which brought to the people, the Agnivesa Tantra composed by
Sage Agnivesa and revised later by Charaka. This brought in various treatments like pastes, powders,
pills, injections into the genitals and specific drugs which were used for improving memory,
increasing vigour and restoring youth.

Further the Tantric Cult consisted of Tantrism, a method understood by only a few to cure diseases.
They used Mantras (words) and Yantras (diagrams) to find the ultimate truth.

There also existed a Rasa period where which took into use various metals like Zinc, Mercury,
Lead and copper for therapeutic treatments.

Whereas during such a period, the Vaidyas (the new Indian Ayurvedic medicine
practitioners)emerged as the Doctors of the Poor as the conventional method was inexpensive and
deeply ingrained in India's villages, and these Vaidyas were used to treat society on the cheapest
herbal remedies and most of the time on honorary terms.

2.2 Modern History

The present leading allopathic medicine system arrived with the British to India, who began here
initially as merchants and later established themselves as rulers. The allopathic system of medicine
was state patronage which was to be used exclusively by the ruling peoples. The allopathic form of
medicine came out to people very late in around the 19th century which started to become popular.

By 1757, The British East India Company established their rule in India. The East India Company
established its Medical Department in Bengal in about 1764 which consisted of 4 surgeons as head,
8 surgeons as assisting surgeons, and about 28 mate’s surgeons, to provide health services to their
Army Troops and workers. By the year 1796, Hospital Boards were established which were
supposed to report directly to the commander in chief of the British Army and various
hospitalboards renamed to the medical boards by the then ruling British Government. Later, in year
1868, a separate Civil Medical Department was established in Bengal which was abolished in the
year 1896 to form Indian Medical Services. In the year 1937, the Central Advisory Board came into
existence so that there is a co-ordination with the position of Public Health Commissioner as the
Secretary.

ome of the very first Public Hospitals included 1679 Madras General Hospital, 1796 Presidency
general hospital and 1835 Calcutta medical college. Archives suggest that the Ayurvedic system in
combination with Arabic system of medicine was eradicated by the allopathic system of medicine.

Page | 6
2.3 The Post-Independence Era

After the British rule was over, Indian markets sold medicines at the most expensive rate.
Firstcame the golden era from 1940-60 which saw companies like Johnson and Johnson, Pfizer,
Abbott laboratories growing exponentially in terms of product developments and investments
abroad.

The strategic alliances started with an organization of pharmacists and physician s in Italy and also
included the very famous TRIPS agreement. The TRIPS agreement was kind of a bundled set of
agreements which brought back the regime of product patents and hence, the fate of Indian patients
was in the hands of some multinational companies. During this phase (1980-2000), the Indian
pharmaceutical Industry was witnessing an uncompromising growth to establish itself as a generic
hub of the world.

During this period, the government and its various establishments were trying to reduce the
priceof medicines to conclusively reduce the cost of healthcare in India however this added to the
reduced profitability of the then Pharmaceutical Industry.

Page | 7
PHARMACIES

Page | 8
3.1 Retail Pharmacies

An important part of India’s developing healthcare system is the Pharmacies. Retail Pharmacies
are the first place for a common man to get a casual medical advice or some consultancy on the
alternatives of medicines. These are also known as unorganized pharmacy retailers. They have
significant advantages of functioning and profitability over other institutional markets or stores
like the low-cost operations, low investment in infrastructure and untrained sales staff. This
category of pharmacy accounts for 86% of the total domestic medicine sales.

The Retail Pharmacy market has been growing at a rate of 18% p.a and is very fragmented
throughout the country. These are primarily governed under the Drugs and Cosmetics Act,
1940, where the Third schedule to the act carries all the Over-The-Counter Drugs. The
Schedule H out of the various other schedules present under the act lists those medicines
which are not to be sold without a prescription.

These pharmacies have to secure a licensed premise under which the license to dispense
medicines shall be granted and that they shall only be allowed to dispense medicines in that
licensed premises under the supervision of a registered pharmacist.

Page | 9
3.2 Revenue Model

The Retail Pharmacy sector has basically two different types of businesses:

 Clinical Pharmacy: In general terms, this type of Pharmacy is generally situated near a
hospital or a clinic and only keeps those medicines prescribed by the clinic.
 Independent pharmacy: This type of pharmacy functions on its own which means it has to
have all such types of medicines as the customers want. They also provide prescription
medicines without prior notice.

Generally, a Clinical Pharmacy, a doctor is involved with the pharmacy who prescribes only those
medicines which the pharmacy makes itself stocked up with. Normally, a clinical pharmacy earns up
to 23% on drugs (whether or not prescription.) Surgical items fetch up to 80% margins.

On the other hand, an independent pharmacy has the following margins:

 Standard, Diabetic and Blood Pressure medicine- A cash transaction fetches 20% margin
excluding the 1% or 2% cash discount.
 Generic Medicine- These medicines yield margins ranging from 10% to100%.
 Surgical Tools- It ranges from 10% to 200%. It is reported that the cost of a surgical syringe
can be as low as 97cents. [Source: CDC]
 Cosmetics- Shampoo, Oils & Facewash can draw profits ranging from 8%to 13% on retail
price.

In case of independent Pharmacies, they face a continuous risk of keeping all the medicinesin stock
since they are not aware what kind of medicine a customer may demand as they ought to receive all
kinds of prescriptions. These pharmacies continuously strive for customers since there is cut-throat
competition and everyone is giving heavy discounts.

Clinical Pharmacies either fix an amount of money that they provide to the doctors who have partnered
or the doctor may eat up to 10% of the total margin of the Pharmacist which might not be in the best
interests of the latter.

Page | 10
3.3 Challenges to Retail Pharmacies

Given the un-organized nature of this part of the sector, it has its own limitations and
loopholes-

 Documentation: Sale of drugs for cash and without billing systems in place. This
creates conflict in collection of GST as well as has a significant impact on the drug
recall process.
 Inventory Management issues: It is hard for Small scale pharmacies to store awide
variety of drugs due to which, the consumers visit multiple stores in searchof the
required medicines.
 Counterfeit Medicines: Pharmacies may sell off fake medicines along with others
to earn some easy money. This is the most feared mal-practice of pharmacies in
India.
 Danger of Drug Abuse: Pharmacies have been allegedly selling medicines without
prescriptions which have led to a significant rise in the Drug Abuse cases.

Page | 11
3.4 E-Pharmacies

E- Pharmacies are portals which allow customers to order medicines and get those delivered
to their addresses without having to actually go to the Stores. These are done through highly
convenient applications with fluid interface.

Pharmacies like these are online shopping websites or application-based portals which accept
request for order of medicines through their interface and confirm the order for further
processing. At present, India does not have any Central Authority established for the
E- Pharmacies to report to. Hence, they function in a self-regulated manner.

There have been as many as 60 online pharmacy startups in India in the last two years, but
most of them have not exceeded the scope of other online vertical titles such as food, furniture
and e-commerce.

Page | 12
3.5 Revenue Model
E-Pharmacies have two distinct ways to sell medicines and fulfill their orders. Those are:

 Inventory Model: In this kind of model, the Pharmacy Company itself holds a
stock of various medicines those are sold directly to the customers. In this case,
the company has to establish warehouses across various geographical locations.
Once the request for medicines is received by the portal, the Registered
Pharmacist checks the order quantity and the prescription provided by the
customer. The pharmacist then packs the medicines in a tamper proof pack and
delivers it through a courier service.
Companies following this model pick up medicines and other supplies directly from
the Manufacturers and hence the margin of income which would otherwisebe
distributed among the wholesalers and retailers would now be earned by the
company.

 Intermediary Model: In this kind of an E- Pharmacy Model, the company acts as

an intermediary between the buyer of medicines and the seller thereof. Technically,
the company portal acts as an aggregator which provides a platformto the customer
to place orders and upload prescriptions. The website empanels a list of registered
pharmacists from around the locality of the delivery address. As soon as the request
is placed, the order and the uploaded prescription are then assigned to a pharmacy
which verifies the order against the prescription and then delivers it to the address
mentioned. One might wonder what a company would earn in this kind of a model. It
is basically a commission-based income which takes into account the sales effected
by the online portals. Commissions like these are relative and vary from company
to company.

Page | 13
3.6 Major E-Pharmacy Players

Page | 14
1MG
 Founded in 2015
 Headquartered in Gurugram
 Founders: Prashant Tandon, Vikas Chauhan and Gaurav Agarwal
 1Mg has diversified through acquisitions. Ayush was one of their most
noteworthy acquisitions for Homeopathy Medicines. During 2016-2018, it
acquired Mediangels and Dawailelo. 1Mg has tied up with laboratories
like Thyrocare, SRL Labs and Metropolis.

Page | 15
Pharmeasy

 Formed in 2015
 Headquartered in Mumbai
 Founders: Dharmil Sheth and Dhaval Shah
 Supplies medicines all over India and runs Diagnostic Services in
Delhi, Vadodara,Kolkata and Mumbai
 It has tied up with laboratories like Oncquest Diagnostics, Apple
Diagnostics andSRL Diagnostics.

Page | 16
Medlife
 Founded in 2014
 Founded by Tushar Kumar and Prashant Singh
 Registered in Bengaluru
 Functions on the Inventory Model
 Facilitates Consultation from Doctors in Bengaluru itself only
 Also allows franchisees to function and offers E-Consultancy and Laboratory
Services
 Acquired Myra in May 2019 and Medlabz in Jan 2019.

Page | 17
Netmeds
 Founded in 2012
 Registered in Chennai
 Founded by Pradeep Dadha and Bruce Schwack
 This E-Pharmacy functions on the Inventory Model
 Acquired Delhi Based App called Pluss in 2016 and currently
operating under theFranchisee Model
 Added Diagnostic services to the existing services by acquiring JustDoc
 Eying Tier II and Tier III cities for setting up offline stores

Page | 18
3.7 Advantages
Advantages to Consumers associated with buying Medicines online:

 Convenience: With the help of online portals and applications, consumers wouldbe
able to buy the medicines from the comfort of their home. It also addresses the
mobility issues of the elderly and the nuclear family lifestyles in the periphery of
metro cities.
 Accessibility: E-Pharmacies can make available those medicines which may be
otherwise hard to find, they do so by having a large network of pharmacies however
their Retail counterparts maintain a limited stock only.
 Authenticity: All purchases are digitized and documented for future references
and audit trails. These decrease the risk of overbuying from prescriptions and hence
possible drug abuse.
 Patient Education: E-Pharmacies help the patient understand the possible
sideeffects and ideal dosage by means of additional information about their
websites.
 Cost Advantage: The online pharmacies offer to accept lower prices for the
medicines and hence attract a larger consumer base.

Advantages to Regulators of E-Pharmacies:

 Tracking: All the sale invoices can be traced back to the Patient Name,
Prescribing Doctor, Address of the patient, Batch number of medicines so
provided against the order and such other details forming a strong Audit Trail.
 Transparent: The E-Pharmacies sell authentic medicines and therefore create
transparency and reliability in the market by gaining the trust of the
regulators.
 Tax Impacts: All the transactions are subject to tax liabilities and are 100%
under the ambit of the system. All the transactions are done on a valid bill.

The E- Pharmacies also provide an additional business opportunity for the Retail
Pharmacies because they often tie up with pharmacies based on their
geographical reach for deliveringthe orders.

Also, when the E-Pharmacies are in business with the Retail Pharmacies, they
ensure consolidation and better management of inventory.

Page | 19
3.8 Concerns associated with the functioning of the E-Pharmacies

E-Pharmacies also suffer from their own set of challenges which question their
functioningand credibility. Below mentioned are some of the probable concerns
which could arise in the mind of the general public:

Cyber Crimes like Phishing: E-Pharmacies can be targeted by cyber threats like
Phishing. Fake websites in the name of the reputed pharmacies may be created in
order to gain data or even convince users into releasing sensitive data of various
types like Patient Information and Payment data like CVV or Pins. E-Pharmacies
should make an effort to educate their consumers from such scams just like the
banks have to do these days.

Drug Abuse: With the abundance of pharmacies, it might be easy for people to
exploit the vast availability of medicines. Hence, a single person may order the
same quantity of medicines from 3 different pharmacies and get 3 times the
required amount. There has to be a system which centralizes data and warns about
the repeated orders.

Fake Medicines: It can be possible for an E-Pharmacy to supply duplicate

medicines and get away with it. Currently, there are no provisions which hold
them accountable for the medicines dispatched; they can term Medicines as
Sensitive/Personal Goods (Non- Returnable) and get away with it. E-Pharmacies
must be equipped with detailed recording of all dispensed goods and sufficient
audit trails.

Alternate Medicines: E-Pharmacies could sell alternative medicines to customers

if they do not hold that particular type of drug. This could pose a threat to the
patient given the fact that the Pharmacist is not well versed with the Medical
History of the patient and create an unwanted situation like allergic reactions. On
the lighter side, if the Pharmacist decides to substitute a medicine, he must
consider the cost difference and if the Buyer would be willing to pay that. Hence,
it shall be prohibited to substitute a medicine.

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3.9 Draft Regulations on E-Pharmacies released by the Government

The Union Health Ministry released Draft Regulations for Electronic Pharmacies on 28 th
August, 2018. The provision of the proposed regulations can be explained in two broad
categories:

Regulatory Authority

 E-Pharmacies would be governed under the Drug Controller General of India

(DCGI).
 They would be covered under the Drugs and Cosmetics Act (Rules), 1945 and The
Information Technology Act, 2000 which is the standard statute for all E-Commerce
Companies.
 The E-Pharmacy Companies need to obtain the License from any one state and that
would allow them to operate in the whole country.
 The Website or Application of the company in question should also comply with the
provisions of The Drugs and Cosmetics Act, 1945.

Registration
 A person or a company which intends to sell medicines online or enter into
the business of E-Pharmacy shall be required to obtain a Three-Year
Renewable Registration Document/Certificate from the Central Licensing
Authority (CLA) by paying a fee of ₹50,000 and providing the required
documents on the online portal of the Central Government.
 Registration shall be necessary for the basic operations like selling, storing,
distributing and offering for sale.
 Application for renewal shall be submitted at least 3 months before expiry
along with a fee of ₹50,000 and if such an application is not submitted within
6 months after the expiry of the Registration, it shall be cancelled.
 The premises of the pharmacy shall be inspected by the team of the CLA
every 2 years.
 The certificate holder shall be required to inform the CLA of any changes in
the constitution of the firm.

Page | 21
Verification
The pharmacist is responsible for verification of the identity of the patient and the registered
medical practitioner. He shall further dispense the drugs required in accordance with the
instructions of the Medical Practitioner and all of the above information shall be maintained
on the portal itself.

Medicines not to be sold online

The Pharmacy shall not put up for sale those substances which are covered under The Narcotic Drugs
and Psychotropic Substances Act, 1985.

Confidentiality

The Pharmacy shall be liable to maintain the secrecy of customer information and other
personal details which are provided on the portal. However, they shall be liable to provide
any such information which the Government deems necessary on the interests of the general
public.

Advertisement/ Publicity
E-Pharmacies have been proposed to abstain from any kind of Advertorials on any platform
like print media or audio-visual means.

Data
The E-Pharmacies are also required to ensure that the Customer Data is not sent outside the territory of
India along with the collection of such data and ensuring absolute privacy of patient information.

3.10 E-Pharmacy Rules should also include provisions for:

 Mandatory E-Prescriptions so that a single person cannot get more than the
required medications.
 E-Pharmacies shall be empowered to directly contact the doctor in case
they notice any discrepancy with the data given by the patient. The data
must include a scanned copy of the prescription.
 Proper Audit trails should be maintained by means of patient data and
addresses sothat it can be referred in case of any adverse event.
 Drugs which have a very high abuse potential like Benzodiazepine should
be banned from being sold online. Codeine containing cough-syrups have
shown similar abuse potential in the past because of its easy availability.

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3.11 E-Pharmacies in other Countries

To be functioning as an E-Pharmacy in the United States of America, one has

to get itselfregistered with the Drug Enforcement Authority (DEA). They have to
comply with state specific rules and also the federal rules.

For Canada, an E-Pharmacy has to have a physical store to function. They have no
nationalprocedures to follow other than the state specific rules.

E-Pharmacies in the United Kingdom have to be registered with the General

PharmaceuticalCouncil (GPhC). A person can click the logo which shall redirect
it to the General Pharmaceutical Council (GPhC) website and show all the
relevant registration and licensure details.

Page | 23
ANALYSIS

Page | 24
4. Analysis

An Emerging Challenge: Manage healthcare services for 1.35 Billion People

Is this what makes the Pharmaceutical sector a future success?

Demography of the Country

40.52% of the total population in 2010 was estimated to be below 19 years of age.
That same number was estimated to reduce 40.21% in 2015, further down to
39.46% in 2020. It is expected that the ageing population will occupy more and
more of the total populace. Sincethe ageing population is more susceptible to
Chronic Diseases, this shall pose a serious concern for the Healthcare Industry
since it is bound to cause a foreseeable additional burden.

This also throws light and reemphasizes the need for the development of the
Healthcareinfrastructure for each and every level.

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Healthcare Expenditure

There has been a significant increase in the Healthcare expenditure in India, right from 121.60
crores in 2014 to 486.94 crores in 2022. The Healthcare expenditure of a country indicates
level of resources channeled to Public health, relative to a country's wealth.

Pharmaceutical Sector Revenue Growth

The Indian pharmaceutical industry is the third largest in terms of production and the 13th
largest in terms of revenue worldwide. The demand rose from US$ 28.5 billion in 2014 to
US$ 42 billion in 2021. It is projected to hit US$ 130 billion by 2030. This growth shall be
attributable to Healthcare Financing and better Healthcare infrastructure. India can be
counted among the top three pharmaceutical markets by the end of 2030 by building up
growth.

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Is E-Pharmacy Pharmaceutical’s next industry standard?

Accelerated Internet Penetration

With a total of 604.21 Million Internet Subscribers by 2018, India is set on the high road to
expeditious internet usage growth. The total internet subscribers in India are set to rise in the future
because of the increase in digitization of daily activities and the growing popularity of benefits
attached with doing chores online.

35% of the Internet Subscribers are from the top 9 cities of the country which also include Surat and
Kolkata. Also, under the Digital India Program, the improved broadband shall attract more users in the
near future.

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Improving Health Insurance penetration

There has been significant improvement in the health insurance cover all over India as
the data suggests.Tax reliefs and other government schemes including the Aam Aadmi
Bima Yojna. Central Government’s Karunya Health scheme aims towards those with
chronic illness which are generally very expensive to cure and demand long term
commitment.

Foreign Direct Investment

The Union Cabinet has agreed to amend the current FDI policy in the
pharmaceutical sectorand to allow FDI up to 100% under the machine-based
production facilities for manufacture of Medical Equipment. This has also helped
in ensuring:

 Quality medication and services complying with international standards

 Strong supply chain facilities for essential medicines

Page | 28
Modifying illness forms in India

India has witnessed a major transformation of the pattern of illnesses that causes deaths in the
country. The focus has shifted from Communicable diseases to Non- Communicable Diseases
(NCD). The part of population engulfed by the two most challenging diseases i.e., Diabetes
and Hypertension shall rise to 263 million by 2022.

These diseases are of utmost seriousness to the Healthcare Sector since these are not the ones
which can be cured within a period of time. The increase in these chronic diseases can be
directly attributed to lifestyle. Also, this shows the rising demand for daily medicines to be
taken over a long period of time. E-Pharmacies provide cost advantages to these patients and
also provide reorder facilities.

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4. Conclusion

• The Retail Pharmacy Market size shall be valued at INR 2,330 Billion by
2024 and it is making remarkable progress since the old is making way
for the new.

• The E-pharmacy sector has seen a rapid growth during the past few
years especially due to the Covid-19. Growing internet penetration and
digital payments infrastructure, rise in industry investments and
medicine spending, as well as government initiatives will fuel growth of
E- Pharmacy sector.

• However, cyber threats and data security, lack of strong legal and
regulatory framework and need for continuous technology upgradation
are some of the challenges the e-pharmacy industry has to face.

• There is a potential risk of data breaches as online platforms

depend heavily on valuable insights derived from customer’s
personal data.

• There is also a need to establish a legal framework for e-pharmacies,

distinctive from the legal regime for offline sales.

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5. Bibliography and References

Textbooks

 Pharmacy : What is it and how it works by William N. Kelly

 Introduction to General Pharmacy by Gourav Agarwal
 The Pharmacist by Gillian Jackson

Websites

 https://timesofindia.indiatimes.com/business/india-business/orders-at-e-
pharmacies-see-bumper-surge/articleshow/75544083.cms

 https://www.thequint.com/topic/e-pharmacy

 https://www.bloomberg.com/press-releases/2022-02-23/e-pharmacy-market-
revenue-worth-206-billion-by-2028-says-global-market-insights-inc

 https://theprint.in/india/e-pharmacies-is-against-the-laws-in-country-says-aiocd-
2/1454765/

 https://cdsco.gov.in/opencms/opencms/en/Notifications/Public-Notices/

 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9804119/

 https://www.who.int/data/gho/data/indicators/indicator-
details/GHO/pharmacists-(per-10-000-population)

 https://www.irccl.in/post/the-ban-on-sales-via-e-pharmacy-where-is-the-
required-market-disruption\

 https://indianexpress.com/article/business/irdai-no-proportionate-deduction-for-
pharmacy-icu-diagnostics-implants-6321211/

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