Is license compulsory for starting pharmaceutical business in India?
For starting any pharma business you require 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. 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 distribution channel is to make available maintain essential medicine and drug delivery to customer in timely manner.
Patients are customer in pharma industry, they are end user of the medicine supplied by leading pharma companies. They will demand pharma products from pharmacy or retail chemist. Pharmacy will get their require products from distributors. Distributor demand medicines from stockiest and stockiest get their products from c&f agents and they get their require stock from pharma company. This is the working method of pharma distribution channel. Here the work profile of wholesaler, distributor or stockiest is nearly same and they are important part of distribution network. Even majority of document and license application process for becoming pharma distributor is also same in majority of field. With the help of distributor licence 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 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 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 practise in healthcare sector.
