How does an e-pharmacy run, Potential and challenges in India, Regulatory framework, e-pharmacy draft policy

1. ONLINE PHARMACIES IN INDIA
A.PRAVEEN KUMAR
PM/2017/401

2. FLOW OF PRESENTATION
 e-Pharmacy
 How Does an e-Pharmacy operate?
 e-Pharmacy models
 Benefits of e-Pharmacy
 Potential of e-pharmacy in India
 Risks and Concerns
 Draft Policy
 Current Key Players in the market
 Bibliography

3. e-Pharmacy
• E-Pharmacies or Online pharmacies are online
platforms through which consumers can order
medicines online without the need for visiting
pharmacies.
• Mobile based applications provide the ease
and comfort of ordering medicines which
increased the demand for this model.

4. How does an e-Pharmacy operate?
2 OPERATING COMPONENTS

5. e-Pharmacy models
Inventory-based Model of e-Commerce: Inventory-
based model of e-Commerce means an activity where
the inventory of goods and services is owned by the e-
Commerce entity and is sold to customers directly.
Marketplace-based Model of e-Commerce:
Marketplace-based model of e-Commerce means
providing of an information technology platform by an e-
Commerce entity on a digital and electronic network to
act as a facilitator between a buyer and a seller.

6. Inventory-based Model of
e-Commerce
Example: Medplus mart.

7. Marketplace-based Model of e-Commerce:
Net Med
1mg

8. BENEFITS Of e-Pharmacy
Easy access
Convenience
Price Benefits
Easy availability of Hard to Find Medicines
Comparison with Generic Drugs
Can support Govt initiatives like CSC(Common Service Centres, provides various e-
health services to rural population like telemedicine and e-diagnostics) and
e-Kranti (Govt initiative to provide all Govt services electronically to citizens, These
include e-education and e-healthcare)

9. e-Pharmacy Model Supports the Jan Aushadhi
Program
The operating model of e-
Pharmacy that will have a
mobile and a web-based
application could help
customers find their
medicines, directly linked
to inventory at existing Jan
Aushadhi stores. This will
help users to find Jan
Aushadhi equivalents for
their prescribed brands
and also helps to find Jan
Aushadhi retail stores in
given region

10. Potential of e-Pharmacy in India
• e-Pharmacy is still at its nascent stage in India, but like other
categories, it has the potential to be a very large industry segment
in the near future.
• Factors driving the demand for e-Pharmacy in India:
Rising number of people with unmet medical needs due
to large population
• increasing penetration of internet in both urban and
rural India.
e-Pharmacy model could account for 5-15% of the total
pharma sales in India

11. Risks and concerns for e-Pharmacy in India
• MAJOR CONCERN: LACK OF REGULATORY FRAMEWORK
IN INDIA
• Illegal or unethical pharmacies send outdated, substituted or
counterfeit medications.
• Concern for Temperature sensitive Pharmaceutical since Cold
chain may be neglected.
• Currently multiple laws govern Online Pharmacies in indirect
manner
• The Maharashtra Food and Drugs Administration (FDA) raided 27
online pharmacies located in Mumbai, Thane and Pune and seized
drugs worth Rs. 2 crore, In October 2015.
• Against to the interest of eight lakh chemists and 80 lakh workers
and their families

12. DRAFT POLICY
• Govt is planning to draft a policy for online pharmacies,
According to the draft policy:
• The Drug Controller General of India (DCGI) will issue licenses
for three years and e-pharmacies will be regulated under the
Drugs and Cosmetics Rules 1945 as well as the Information
Technology Act 2000.
• The draft says e-pharmacies will have to pay Rs 50,000 to renew
licenses and the premises from where e-pharmacies operate will
be inspected every 2 years.
• E-pharmacies would have to update information like the
availability and types of medicines for sale as well as the supply
channels and vendor lists on their portals, according to the draft.

13. DRAFT POLICY
• E-pharmacies will also require a facility for customer support
which will operate for at least 12 hours every day of the week,
the draft proposes.
Online pharmacies will be regulated under the Drugs and
Cosmetics Rules, 1945 and would also have to abide by
regulations like the Information Technology Act, 2000 and the
Narcotic Drugs and Psychotropic Substances Act, 1985. They
will not be allowed to advertise any drugs over the radio or
television, the draft added.

14. CURRENT KEY PLAYERS IN THE MARKET
1mg: Online Hyperlocal pharmacy marketplace
with doctor listing and tele-consultation
MyraMed: Mobile app for ordering medicines
SastaSundar: Online marketplace for
healthcare products
MedsOnWay: Online pharmacy to order
medicines
Healthkart: Online store for consumer health
products

15. Bibliography
• http://ficci.in/spdocument/20746/E-Pharmacy-in-India-Last-Mile-Access-to-
Medicines_v5.pdf
• //economictimes.indiatimes.com/articleshow/63690489.cms?utm_source=contentofinterest
&utm_medium=text&utm_campaign=cppst
• http://etaal.gov.in/etaal/
• http://www.bisinfotech.com/article/healthcare-will-next-big-ecommerce-sector-india/
• http://www.medgadget.com/2016/05/global-epharmacy-market-flourishing-in-western-
world-asia-pacific-offers-strong-growth-opportunities.html
• http://innovareacademics.in/journals/index.php/ajpcr/article/viewFile/10282/4022
• https://www.ndtv.com/india-news/chemists-call-for-nationwide-strike-on-october-14-
1225190