NEW DELHI/MUMBAI – India’s drugs regulator has asked all states to enforce a court directive prohibiting online medicine sales, a senior government official said on Wednesday, raising industry concerns it could disrupt some online businesses.

The CDSCO’s directive was sent on Nov. 28 to all states, according to a copy seen by Reuters. It was not immediately clear what subsequent action states would take.

Sreenidhi Srinivasan, a senior associate at law firm Ikigai Law, said the Delhi court order had raised concerns in the industry and any bans by state drug controllers could hurt online sellers.

Trader groups have protested for years against e-pharmacies, saying they challenge their businesses and could allow medicines to be abused by being sold without proper verification. They also allege e-pharmacies make it easier to use one prescription to buy medicines multiple times.

Steep online discounts have also hit offline businesses, which according to industry estimates recorded $18.4 billion in retail sales in 2018-19. Sales growth has averaged only 8.2% a year since 2015-2016, when sales grew by 12.3%.

“Online retailers have been offering discounts more than our margins,” said Yash Aggarwal, legal head of South Chemists and Distributors Association in New Delhi.

Some are not worried, however. Pradeep Dadha, CEO and founder of online e-pharmacy Netmeds, said his firm was complying with all Indian laws and regulations and business was continuing as usual.

“All our partner pharmacies also have the required licenses,” Dadha said.

(This story corrects day in paragraph 1 to Wednesday from Tuesday)

Reuters

December 4, 2019

Reporting by Aditya Kalra; Editing by Stephen CoatesOur Standards:The Thomson Reuters Trust Principles.