The online pharmacy space, which attracted the attention of authorities in the recent past for the wrong reasons, is set to take off in a big way in India with the proliferation of mobile phones and apps.
Even as the Drug Controller General of India (DCGI) is setting up a framework for online pharmacies to operate in the country, NetMeds.com, which has the requisite licenses in place, has launched the first pan-India solution in the market.
NetMeds last week launched its mobile app, which can be downloaded on Android or iPhones and has tied up with the government’s India Post to provide delivery services nation-wide.
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The app offers the entire catalogue of more than 50,000 drugs available to those with a valid prescription and a smartphone.
While India’s Rs.85,000-crore pharmaceutical industry is growing in double digits, Pradeep Dadha, CEO, NetMeds, told this correspondent that the online pharmacy industry could grow to 4-5 per cent of total industry reaching Rs.5,000 crore in the next five years.
“Some marketplaces were operating in violation of the provisions of the Drugs & Cosmetics Act and not dispensing the drugs from a licensed premise which is why the issues cropped up recently,” Mr. Dadha said.
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This is why the DCGI is now formulating guidelines as the existing Drugs & Cosmetics Act has no guidelines in place for e-pharmacies. The DCGI had then observed that the interest of small retailers would be protected and existing supply chains would not be adversely impacted by e-pharmacies. The aim was to integrate e-pharmacy into the existing system, he said.
On fears expressed by brick and mortar pharmacies and the opposition from bodies such as All India Organization of Chemists and Druggists (AIOCD) on e-pharmacy, Mr. Dadha said “there was an initial negative reaction from them but online pharmacies will only support and supplement existing pharmacies and are a step towards ‘Access for All’ ensuring patients get medicines even in far-flung areas.”
“Our primary target is to cater to chronic conditions such as diabetes, hypertension and cholesterol control and provide month-on-month medicines. We do not cater to emergencies or acute care. Even internationally, mail order pharmacies follow a similar model,” he said.
NetMeds’ competitors include mChemist and 1mg although these are more metro-centric. On prospective competition, Mr. Dadha said, “Dadha Pharmaceuticals have been in the business for 100 years and one needs domain expertise.”
NetMeds launched ‘Health Memo’ an app to electronically store patient records on the cloud including X-rays, MRI scans etc. and it will be soon integrated into its app. It uses its in-house depot in Kerala for warehousing.
NetMeds raised Rs.60 crore from promoters and Mape Advisory. In the medium-term, it expects funding requirement of Rs.200 crore, “depending on the traction the business generates. It would be used towards marketing, creation of depots and wholesaler tie-ups.”