Medicines online: Prescription for change

Conventional pharmacies may have apprehensions of their business getting eroded by online pharmacies, but online purchase is as easy as walking into a supermarket and purchasing what one wants.

Online pharmacies offer a range of products, including skin care, nutrition, personal care, baby care and hair care too. The emergence of pharmacy retail chains like MedPlus, Apollo Pharmacies and Global Healthline, offering customers a range of products under a single roof at less price and high discounts, has altered the market scenario. The total revenue generated by online sales of healthcare products in India is Rs 507.59 crore this year, which has increased from Rs 7.71 crore in 2012 financial year at a CAGR of 87.4 during financial year 2012-financial year 2015, as per industry estimates.

Online healthcare products’ market has registered a remarkable growth during the last five years on grounds of expansion in product range as well as surge in online market places.

The Centre’s decision to encourage e-pharmacy in a big way will see several key players, including retail giants like Reliance, making a foray. This might wipe out the earnings and also the livelihood of about eight lakh retail pharmacies in the country, say sources in the Tamil Nadu Chemists and Druggists Association (TNCDA).

“Big firms like Reliance, Snap Deal and Flipkart will get the leverage if the government decides to allow e-pharmacy without any mechanism,” says K. K. Selvan, association general secretary.

“Over 40 per cent of our business will be totally ruined and allowing the sales of drugs and medicines online, just like any other commodity, will also affect the livelihood of about 40 lakh employees and their nearly 1.5 crore family members across the country,” he adds.

The 30,000 member-strong association has decided to participate in the nation-wide agitation on Oct.14 protesting against the Centre’s move to permit online sale of drugs.

“Five firms have sought the Centre’s permission to commence online sale of medicines but three among them have commenced the operation with formal approval,” claims S. Ramachandran, association president.

The Hyderabad-based MedPlus offers medicines at a discounted price and it has widened the scope and convenience of purchasing drugs and healthcare products from home.

The NetMeds.com, for instance, which is the first to establish a warehousing hub in Chennai, dispenses medicines only against a valid prescription from a registered practitioner. It also offers the convenience of uploading the prescription and even the facility to track the order.

Online pharmacies, according to him, cater to a certain group of chronically ill patients like diabetics and those suffering from hypertension or cardiac problems, requiring medicines month-on-month basis.

“Online pharmacies can’t dispense drugs to patients who need medicines immediately. It will take time to ship the consignment. So, this is where regular retailers would continue to serve,” Dadha says.

There are multiple players. NetMeds.com for instance, offers an impressive selection of both prescription drugs and non-prescription drugs, supplying over 25,000 stock-keeping units (SKUs) across the country from its first warehousing hub in Chennai.

“Our focus is to help patients in far-flung areas, say Kanyakumari or Tuticorin, who had taken treatment at a hospital in Chennai and could not get medicines in their areas, get the prescribed medicines as drug availability in Tier II or III cities and more remote areas is limited.

“Prescription medicines will be dispensed strictly and only against a valid prescription from a registered medical practitioner,” claims Dadha.