PharmEasy, Tata 1mg, Others Meet Health Ministry Officials To Talk Epharmacy Rules

Epharmacy companies such as PharmEasy, Tata 1mg, Flipkart, and Amazon India reportedly met with health ministry officials at the G20 meetings in Goa earlier this week to discuss industry rules.

These discussions happened as part of the G20 health working group meeting, ET reported citing sources.

The companies have been asked to share a formal presentation to the government on the benefits of epharmacies and their compliance status as well as the challenges that the segment faces as the demand for online medicine delivery continues to be high.

These companies might meet the Union Minister of Health Mansukh Mandaviya next month after they submit the aforementioned presentation. Reportedly, the Digital Health Platforms (DHP), an industry association, will be preparing the presentation. Notably, PharmEasy and 1mg are key parts of the association.

Per the aforementioned sources, this is part of the consultation process before bringing any new regulation into effect.

While a complete ban on epharmacies is unlikely, the government is still seeking a report on customer benefits through such platforms beyond just the discounts they offer on medicines and lab tests.

The discussions in Goa have happened nearly 10 days after media reports suggested that epharmacy companies are set to meet the health minister to discuss data privacy concerns. These discussions also mark one of the few times when the government has heard out the industry’s views on regulating online pharmacies.

On February 10, the Drug Controller General of India (DCGI) sent show-cause notices to 20 epharmacies, including Tata 1mg, Amazon, and Flipkart, for selling and distributing drugs in contravention of provisions of the Drugs and Cosmetics Act, 1940.

After the notices, the companies reached out to the health ministry to put their viewpoint forth. Companies also reportedly responded to the show-cause notices. 

However, in March, it was reported that a Group of Ministers (GoM) advocated shutting down epharmacy platforms over alleged malpractices in the sector and concerns about data privacy, predatory pricing and the sale of medicines without any prescriptions.

The GoM’s viewpoint came after the health ministry revised the draft of the new Drugs, Medical Devices and Cosmetics Bill, adding rules that empower the government to regulate any sale and distribution of any drug by online mode, including epharmacy companies. This draft replaced the proposed legislation released to the public in July 2022 for stakeholder comments.

The government has also brought a licencing regime for online pharmacies with the 2022 bill, though the regulations have not been finalised yet.