Retail Pharmacy

Perhaps stars are not favourable for Indian pharmaceutical industry. On one side the vested interests are bent upon to malign the manufacturing industry that provides affordable medicines across the world. The fact that hurts MNCs. On the other side pharmacies are holding the manufacturers and the consumers at ransom, threatening strike every other day and dictating term. It’s painful reality.

The retail pharmacy business dates back to 1860’s. The manufacturing sector emerged in India almost after five decades in mid 1900. Even with the late start the manufacturing sector made a spectacular progress. With government support the manufacturing sector is galloping from 1970 onwards. Ever thought why retail sector could not keep pace with the manufacturing sector? There are many reasons, but just one most important reason has been lack of professional management. Retail never got the right impetus. It lacked professionalism. Unfortunately pharmacy has been an extension of a grocery shop in India and that mentality of owners and consumers hindered its progress. We hardly see any board of Pharmacy. What we see is board of medical and general stores or a chemist. There is tremendous increase in the number of such shops (pharmacies) but there is a lack of quality. There is hardly any pharmacy that can come close to its counterparts even in a nearby place like Dubai. The standards of pharmacies in developed nations are far superior. Unless the mentalities of the pharmacy owners undergo a drastic change, the Indian consumers will always be at receiving end.

One of the most neglected lots of professionals in India is the pharmacists. The poor pharmacy graduates study mathematics and microbiology, pharmaceutical engineering and pharmacology, pharmaceutical management and pharmacognosy, and many other subjects for the graduation. It is a much harder discipline than many other fields, but when they graduate they are offered peanuts by the pharmacies. The diploma holders are not much different. There is a exploitation of this young generation. At many places one finds a ‘qualified person’ is grossly unqualified, but who cares?

The margins for the pharmacies in India are perhaps the best in the world. In addition to medicines the pharmacies indulge in many other activities. Selling talk time of mobile service providers is unique to India. Very often one find a big board of mobile services provider and the name of pharmacy appears in small letters in one corner of the board. Substitution of doctor’s prescription by another product that offers better margin is very common. Some unscrupulous elements also indulge in selling samples. The bonus offers and discount schemes announced by manufacturers never reach the consumers. Some assume a role of clinician and practice medicine. In many places in UP and Bihar, patients are injected by someone in the pharmacy. The pharmacies also make large profits by selling cosmetics and daily necessities, even bread and butter. The claim that pharmacy business is not lucrative is a myth. There are hardly any pharmacies that have downed their shutters. Many of the pharmacies get credit from the wholesalers and do their business with negligible investments in stocks. Date expired and unsold products are replaced by the manufacturer. Pharmacy is one of the most lucrative business in India.

There is greater awareness by FDA. The rules are being implemented. Consumers are getting smarter. There is an increased competition. Availability of more pharmacy graduates and their chances of starting their own business in a professional way and many more reasons make old timers, and the so called leaders in the wholesale and retail sector jittery. The problem is threat to the supremacy of some individuals, unions and associations. All these years the companies are restricted from marketing their products unless they pay large sums to local associations. Unless NOC is obtained, the manufacturer cannot market the product. The word NOC was replaced by word LOC (Letter of cooperation) due to MRTP issues, but the practice still prevails. Long back the chemist association in Aurangabad had decided to restrict number of brands in the market. Just five brands of Ampicillin were allowed in the local market. This practice prevented a local leading manufacturer Lupin from making their Lupilin available in the local market where it was produced. This dadagiri of the chemists association started in early eighties. Sarabhai Chemicals, the leading company in that era had reduced the margins and the association went for boycott of Sarabhai products that lasted for a while. The unity among the pharmacies was about to break. Many of the pharmacies were losing business and were keen to end the boycott. It was the time when Sarabhais decided to go public and had announced their public issue (what we call now as IPO). Fearing the adverse impact on the public issue, unfortunately the management succumbed to the demands of the chemists association. Tiger tasted the blood and eventually became a man-eater. The arm twisting practices by the wholesalers and retailers that started in that era have increased over a period of time. FDA has now stepped in and want the pharmacies follow the rules and provide better service. This is what hurts the leaders who are mentally still in the last millennium. They want to dictate terms on the association members, arm twist them to maintain their supremacy. There has to be end to it.

With the changes that are taking place in the society, and with the diminishing role of family doctors, there is a need for community pharmacists. This is a noble profession, but certain unscrupulous elements are tarnishing the image. Time has come to empathize with the patients, understand their pain and provide them with right medication and advice. The element of social responsibility has to be there. Business ethics must include obligations to the society. There has to be a difference between a person selling paratha for Rs. 200 to a stranded devotee in Kedarnath and the pharmacist. Pharmacists should not hold the consumers and manufacturers at ransom. This is possible only when the pharmacies are managed by professionals and are treated as pharmacies and not as an extension of grocery shops. Running pharmacy should not be a Dhanda, but should be a noble profession. It’s a dignified profession. Act that way, don’t degrade. Will the pharmacy owners realize this and act?