Is license compulsory for starting pharmaceutical business in India?
For starting any pharma business you require a license, whether you will open medical pharmacy, distribution agency, wholesale pharma business or PCD Pharma Franchise in India. Every business require proper distribution channel from manufacturer to customer, same in the case of pharma companies. The distribution network of pharma company requires pharma manufacturing company, pharma marketing company, c&f agents, wholesaler/distributor/stockiest, pharmacy/retailer and patient/customer. Basic motto of forming a distribution channel is to make available maintain essential medicine and drug delivery to the customer in a timely manner.
Patients are a customer in the pharma industry, they are end-user of the medicine supplied by leading pharma companies. They will demand pharma products from the pharmacy or retail chemist. The pharmacy will get their required products from distributors. Distributor demand medicines from stockiest and stockiest get their products from c&f agents and they get they require the stock from a pharma company. This is the working method of the pharma distribution channel. Here the work profile of wholesaler, distributor or stockiest is nearly the same and they are important part of the distribution network. Even the majority of document and license application process for becoming pharma distributor is also same in the majority of the field. With the help of a distributor license, you can do following pharma business.
- Prescribed drug or medicine distribution
- OTC drug distribution
- PCD Pharma Franchise business
- Surgical business
- API business
- Institutional and online supply
- Supply of medical devices, ayurvedic and herbal medicine
Pharma distributors, wholesalers and stockiest are the agents or dealers working to supply pharma products such as different type of medicine and drugs to agencies such as pharmacies, hospitals, and other retailers. They regularly purchase these medicines from pharma manufacturing companies and sell directly to other channel partners. They earn their profit via margin and work in the business segment. They also license and GST number require by concern authority if their turnover is equal or more than 45 lacs. Other channel partners such as C&F agents, pharmacy, pharma franchise, and distributors also require the same license to carry out their business. Pharmaceutical segment is very important business segment and it is directly associated with well being, good health and survival of human being. Hence concern government body has made it compulsory for each and every pharma channel partner to register their firm and do their pharma business after getting proper approval and drug license for fair and ethical business practice in the healthcare sector.