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FDI in pharma retailing - a bane or boon for pharmacy profession!
Guru Prasad Mohanta, Anjan Kumar Mohanty and PK Manna | Wednesday, March 20, 2013, 08:00 Hrs  [IST]

“India’s policy on Foreign Direct Investment (FDI) in multi-brand retail is final and one need not be unduly concerned about the policy reversal”, asserted India’s Commerce and Industry Minister in a recently concluded Annual World Economic Forum at Davos. India opened up FDI in multi-brand retail in last September inviting world retail business leaders to start the retail stores for agriculture to pharmaceutical products.
Pharmaceutical retail comes under multi-brand retails.

The debate on FDI multi-brand continues. The multi-brand international retailers have huge resources at their disposal. Many of these world leaders like Wal-Mart have retail pharmacy in their basket. These retail pharmacies would provide excellent opportunities for buying in a pleasant atmosphere and invite more customers due to improved services. The common retailers functioning like grocery stores are likely to lose their customers which would be a threat for their survival. Realizing the threat, the All India Organization of Chemists and Druggists (AIOCD) have called upon their members to gear up and face the challenge with developing their pharmacies to international level and ensuring professional ethics. Indeed, a sensible suggestion! Many community pharmacies have started professional services like providing TB medicines under DOTS which has earned wide appreciation in the professional circles and society. There are apprehensions that these stores may sell products at heavy discount (may even at below cost) to attract customers which may wipe out the domestic players. On wiping out they would increase the price and make profit. A good business sense! There may not be a problem of unemployment or loss of jobs, because these retail units too will employ persons. On the contrary the service conditions of the staff may improve. Currently the unorganized retail pharmacies in our country employ workers without proper contract, making them work for long hours, and employing unqualified persons.

Pharma retail has huge biz potential
Pharma retail (often called community pharmacy, pharmacy, chemist and druggist) has a huge business potential. Currently there are more than 8 lakh retail pharmacy stores in the country. The pharmacy retail is a regulated business requiring a drug sale license from the state government. In addition to the infrastructure requirements like space, refrigerator etc. it is necessary to employ a registered pharmacist. Drugs & Cosmetics Act and Rules; and Pharmacy Act govern the retail business of pharmacy. The drugs inspector appointed under Drugs & Cosmetics Act and the Rules is responsible to inspect the store to ensure the conditions of license for sale are observed. The conditions of sale license are maintenance of purchase records, purchase from licensed wholesaler, sale records either in register or cash memo, sale of schedule medicines (Schedule H and X) only under the prescription of registered medical practitioner, prescription endorsement after sale of Scheduled H and X drugs etc. The prescription medicines are to be sold only under the supervision of a registered pharmacist. The pharmacist is expected to counsel the patients or medicine buyers on safe and effective use of medicines. This is the pharmacist’s professional role.

Unfortunately many of these conditions of retail drug sale license are not observed. In pen and paper each sale unit has a pharmacist. But the pharmacists are rarely seen and even if seen are not identifiable. A recent inspection drive by Maharashtra Food and Drug Administration around the Pune and Pimpri area, found 31 medical stores did not have pharmacists out of inspected 86 medical stores. Maharashtra FDA has issued stop sale notices to all these pharmacies violating rules. This non-existence or non-availability of pharmacists in the pharmacy is not an isolated issue. This is a known fact. Similar is the situation in other parts of the country too. In our country, there is no distinction between the prescription medicines (Schedule H and X) and non prescription medicines. All non-prescription medicines are treated as commodities to be sold without prescription. In practice all medicines in pharmacy are sold as non-prescription medicines without prescription. The schedule has no meaning. The pharmacy stores are no different than other grocery or kirana stores. The medicines require appropriate storage to maintain or preserve the product integrity including the potency. If not stored properly, the medicines may expire well before the expiry date. The expired medicines are not only useless (due to loss of potency) but are harmful often (due to toxicity of the deteriorated product). We have air-conditioned shoe marts and textile stores but rarely pharmacies.

The consumers are deprived of the benefits of the service of pharmacist due to our poor enforcement of regulation. Even where pharmacist is available, there are no professional touches. Barring few, the retail pharmacy stores have no professional outlooks but just selling stores. The many chain pharmacy stores like Apollo, MedPlus, Fortis Health World, Guardian Pharmacy, Dial for Health etc. have been functioning and are slightly better than individual owned pharmacies. Pharmacist is identifiable, air conditioning of stores, discount and few value added services are notable exceptions in these chain stores. But the real professional pharmacy practice is missing and the consumers do not get the full benefit.

India known as pharmacy of third world
India’s produced medicines are available throughout the globe both advanced and underdeveloped countries. India is known as pharmacy of the third world. The country has strong industrial pharmacy presence and performance which has worldwide acceptance and appreciation. But the retail pharmacy in India is in infancy. The pharmacy retail stores are the face of pharmacy profession throughout the world and our country is no exception. With entry of multi-brand retails, the pharmacy stores in the country would be completely different. There would be spacious air conditioned pharmacy (even if part of departmental store) with identifiable pharmacists offering counselling and many other value added services. The multi-brand international retail stores, with unlimited resources compared to the individually owned pharmacies, will likely to appoint or employ not just registered pharmacists but better qualified and competent pharmacists with handsome salary. The handsome salary would attract the higher qualified pharmacists because in addition to earning, the pharmacists would get opportunities to provide professional service. Now we do not find better qualified pharmacists entering into the community pharmacies.

Though now the foreign direct investment in retail is permitted only at bigger cities with population of more than 10 lakh, they may slowly penetrate to the smaller towns. The foreign direct investment in pharmacy retail may become the threat for the individual traditional medicine retailers but the community pharmacy profession is likely to have better professional image with improved professional consumer services!  A threat is an opportunity!


(The authors are with Department of Pharmacy, Annamalai University, Annamalai Nagar, Tamil Nadu 608 002)

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