The month of February 2023 saw the Ministry of Health serving show cause notices to a total of 20 companies. The list includes major names such as Tata-1mg, Flipkart, Apollo, PharmEasy, Amazon, and Reliance Netmeds. These corporations are allegedly involved in the sale of medicines through an online platform.
The Blossoming of E-pharmacy in India
In recent years, there has been a substantial rise in the growth of e-pharmacy across India. Forecasts predict an impressive compound annual growth rate of 21.28% for the period between 2021 and 2027. The factors propelling this expansion include a surge in internet and smartphone usage, escalating healthcare costs, and an increasing consumer demand for convenience and accessibility.
The Role and Growth of E-pharmacies during Covid-19
The Covid-19 pandemic underscored the pressing need for home delivery of medications. During the lockdown period, an estimated 8.8 million households availed the services of home delivery. E-pharmacies, which positioned themselves as facilitators of doorstep delivery, capitalized on this demand and claimed alliances with retail chemists for vending medicines.
Potential Threats to Drug Quality by E-pharmacies
Despite the undeniable benefits, concerns have been raised regarding potential impacts on the quality of drugs. Selling, stocking, offering for sale, or distributing medicines via online platforms or electronic channels without holding a valid license could affect drug quality and endanger public health. As with any online sales of medications, there is a potential scope for misuse of drugs through self-medication and indiscriminate use of the drugs.
Regulation Deficit in India’s E-pharmacy Sector
The regulatory framework concerning e-pharmacies in India is ambiguous. The existing Drugs and Cosmetics Act, enacted in 1940, governs the import, manufacturing, and distribution of drugs in India. However, it lacks a legal definition of “e-pharmacy.” Although the IT Act, 2000, mentions the electronic sale of prescription drugs, it fails to adequately address the complexities of online pharmacy operations.
Attempts to Regulate E-Pharmacies and Judicial Pronouncements
In 2018, the Ministry of Health proposed Draft e-pharmacy rules as an attempt to regulate the sector. Subsequently, multiple high courts across the country, including those in Bombay, Madras, Delhi, and Patna, have echoed the need for stricter regulation of e-pharmacies. The June 2022 report by the 172nd Parliamentary Standing Committee criticized the fact that e-pharmacy rules had not yet been formalized, referring to it as “appalling.”
The Need for Balancing Interests in the Pharmaceutical Sector
There’s a clear need for fostering an environment that balances the interests of both online and offline pharmacies. Given the evolving hybrid model of commerce, the spotlight remains squarely on the Ministry of Health. The onus is on them to devise effective regulations for this new mode of conducting business within the drug domain.
Source: TH