Indian e-Pharmacy grew 2.5x in lockdown; will tap 70 million households by FY25: FICCI

August 14, 2020: FICCI on Thursday released a Whitepaper: 'e-Pharmacies at Covid-19 Frontline: Fighting the Odds, Serving the Nation' stating that there was a 2.5x growth (about 8.8 million) in the number of Indian households using e-Pharmacy services in the Covid-19 lockdown period and estimates that it will tap 70 million households by FY25.

There was a higher representation from the non-metro cities households, compared to pre-Covid-19. The Indian e-Pharmacy market has already been the investor's choice pre-COVID, as it saw approximately $700 million investments flowing in during FY 20. The recent investor sentiment is also quite positive towards the sector, led by the organic adoption of e-Pharmacy during the COVID period.

“India currently has 50+ e-Pharmacy platforms employing over 30,000 people. These platforms are expected to become the government's key partner in enabling various social health initiatives and there is a need to notify the e-Pharmacy draft rules. A simple and clear regulatory path will help unleash the potential of technology for improving access to affordable and quality medicines,” noted the Whitepaper.

e-Pharmacy played crucial role during pandemic
Ashwini Kumar Choubey, Minister of State for Health and Family Welfare, Ministry of Health & Family Welfare, Govt of India today said, "The pharmacy services through e-commerce have been notified by the Home Ministry as essential services during Covid-19. The e-Pharmacy model can work effectively with the Government's Common Service Centres (CSC) aimed at improving access to essential healthcare facilities in rural India."

Addressing the webinar on the release of FICCI Whitepaper, Choubey said, “Technology played a crucial role during the pandemic and ensured the supply of essential items including medicines. The overall essence of these circumstances is that the importance of technology and digital infrastructure to deliver affordable and quality medicines and health services to consumers across the country has clearly emerged.”

Fortunate to serve citizens during lockdown: 1MG
Prashant Tandon, chairperson, FICCI e-Pharmacy Working Group & co-Founder, 1MG said, "The nascent e-Pharmacy sector in India was fortunate to be in a position to serve the citizens during the time of lockdown, ensuring access to medicines across the nation. The entrepreneurs in the space stepped up and were motivated by the positive support of the citizens. We look forward to working with the Government and having clear and enabling guidelines to move this sector forward and unleash a wave of innovation across the healthcare delivery ecosystem."

Improves accessibility and availability of medicines across the country: PharmEasy
Dharmil Sheth, member, FICCI e-Pharmacy Working Group & co-founder, PharmEasy said, "Digital Platforms will enable seamless exchange of information and will lead to drastic improvement in accessibility and availability of medicines across the country. This aligns with the government's vision of Digital India leading to all the stakeholders - be it doctors, pharmacies, and patients, to start using online platforms leading to better healthcare outcomes."

Whitepaper observations
• The lockdown also led to a significant change in consumer behaviour towards consulting doctors, as hospital OPDs and clinics became unsafe and risky due to chances of contracting the disease. Approximately 50%+ consumers reported a decline in face-to-face doctor consultation during the pandemic.

• The Union Home Ministry, vide order number 403/2020-D dated 24th March 2020, specifically mentioned the delivery of medicines through e-commerce as an essential service. This led to 19 state governments declaring e-Pharmacy essential during COVID-19 lockdown.

• The e-Pharmacy model operates in full compliance and harmony with existing laws. The draft rules have been prepared after extensive multi-stakeholder consultation over the last five years and have been recommended by DTAB recommended for finalization of the draft rules (Drug Technical Advisory Board), along with multiple Courts directing the Government to notify the e-Pharmacy Rules. The e-Pharmacy Draft Rules will provide sector-specific e-commerce regulations with an aim to harmonize existing laws/guidelines like IT Act, D&C Act and Rules etc.

• The FICCI e-Pharmacy Working Group has supported the industry to come up with a 'Code of Conduct' for e-Pharmacies in the country. It is committed to working with the government for ensuring that patients across the country have access to quality and affordable medicines and healthcare through a very efficient supply chain. The need of the hour is for the government to consider the importance of digitization in healthcare to empower consumers and notify the Draft e-Pharmacy Rules at the earliest.