The document discusses e-pharmacy in India. It notes that the Indian healthcare sector is witnessing positive transformation as the economy grows. E-pharmacies in India are estimated to grow significantly in the coming years. The evolving e-pharmacy market includes players like Medlife, Netmeds, 1MG, and PharmEasy. E-pharmacies offer benefits like lower prices, increased access and convenience to consumers compared to traditional pharmacies. Regulations and recommendations are discussed to help e-pharmacies operate sustainably in India.

1. E-PHARMACY IN INDIA
GROUPA
AGATHIYAN A, ANANDHARAJ M, ATCHAYAA T,
CHATHREIAN SR
V PHARM. D – 5.2 PHARMACOEPIDEMIOLOGY &
PHARMACOECONOMICS – ANNAMALAI
UNIVERSITY

2.  INDIAN HEALTHCARE IS WITNESSING A POSITIVE TRANSFORMATION
 UNDERLYING FUNDAMENTALS, OPPORTUNITIES, AND OUTLOOK FOR PHARMACY
 EVOLVING PLAYERS IN E-PHARMACY MARKET IN INDIA
 E-PHARMACY: CHANGING THE PARADIGM OF HEALTHCARE
CONTENTS:

3. INDIAN HEALTHCARE IS WITNESSING A
POSITIVE TRANSORMATION

4. • India – 6th largest economy by nominal GDP.
• 3rd largest by Purchasing Power Parity (PPP).
• 5th fastest growing major economy in the world (2019).
• India’s GDP in US $ terms is expected to reach US $3.9 Trillion by FY22.
• It is expected to be the world’s 3rd largest economy in terms of consumption by the year 2025.
GROSS DOMESTIC PRODUCT (GDP):

5. • Indian healthcare provides healthcare
services to 1.35 Billion people.
• It is set to be the “3rd large economy in
the world by 2050”.
• E-Pharmacies in India is estimated to
grow at a CAGR of 63% to reach US
$3,657 Million (Rs. 25,000 crore) by
2022.
• Globally, E-Pharmacy is growing at a
steady 15% and expected to be $200
Billion industry by 2025.
• Current Healthcare Expenditure (CHE)
for India stood at Rs. 67,484 Crore
(2020).
HEALTHCARE EXPENDITURE:

6. UNDERLYING FUNDAMENTALS,
OPPORTUNITIES AND OUTLOOK FOR
PHARMACY

7.  The Indian pharmaceuticals market is the
3rd largest in terms of volume.
 13th largest in terms of value, globally.
 The market grew from US $28.5 Billion
in 2014 to US $29.6 Billion in 2017.
 It is expected to grow at a CAGR of
11.3% and reach US $55 Billion by the
end of 2020.
 India is expected to be among the top 3
pharmaceutical markets by incremental
growth.
 6th largest market globally in absolute
size by the end of 2020.
INDIAN PHARMACEUTICAL INDUSTRY MARKET SIZE AND GROWTH:

8.  The retail pharma market in India is currently at a promising
stage with its three broad segments.
i. GENERIC DRUGS
ii. OVER-THE-COUNTER (OTC) DRUGS
iii. PATENTED PRODUCTS
 The domestic pharma retail market, valued at around US
$17,643 Million (INR 119,641 Crores) in 2017.
 With the share of ANTI-INFECTIVE market with 15.2% share,
CARDIAC drugs market at 12.5%, GASTROINTESTINAL
drugs market at 11.8%, VITAMINS / MINERALS /
NUTRIENTS market at 8.8% and the ANTI-DIABETIC market
at 8.1%.
RETAIL PHARMA MARKET:
SEGMENTS
GENERIC DRUGS OTC MEDICINES
PATENTED DRUGS

9.  Low industry margins
 Sustainability of the industry
 Drug abuse
 Counterfeit medicines
 Documentation/ Tracking
 Poor inventory management
CHALLENGES FOR RETAIL PHARMACY:

10.  E-Pharmacies are online platforms, without having to
visit brick and mortar pharmacies.
 E-Prescriptions in hospitals led to the growth of this
industry (globally).
 The global E-Pharmacy market is currently led by
North America and Europe.
 E-Pharmacy model could account for 15% - 20% of the
total pharma sales in India over next 10 years.
 Currently, E-Pharmacy players such as MEDLIFE,
NETMEDS, 1MG, PHARMEASY, MYRA, CareOnGo
and PHARMASAFE operate in this segment.
 MEDLIFE is leading player with 30% market share in
India.
E-PHARMACY: A POTENTIAL PHARMACY MODEL

11. 1. RAPID INTERNET PENETRATION IN INDIA
2. DIGITAL INDIA INITIATIVE
3. E-HEALTHCARE INITIATIVES BY THE GOVERNMENT
4. INCREASE IN HEALTH INSURANCE PENETRATION
5. CHANGING DISEASE PATTERNS IN INDIA
6. AYUSHMAN BHARAT HEALTH INSURANCE SCHEME
7. FOREIGN DIRECT INVESTMENT (FDI) POLICY
8. SINGLE WINDOW APPROVAL
9. INCREASED SPENDING ON MEDICINES
10. GROWING NUMBER OF LIFESTYLE DISEASES
FACTORS CONTRIBUTING TO GROWTH OF THE E-PHARMACY
INDUSTRY IN INDIA:

12. EVOLVING PLAYERS IN E-PHARMACY
MARKET IN INDIA

13.  E-Pharmacy players in India are undertaking various activities for marketing.
 E-Pharmacy players are using print, digital and television advertising as the major mode of marketing.
 Advertising is mainly done through digital media.
 Some players dedicate high amount of marketing budgets to social media platforms.
 Many players offering discounts with the range of 15-70% to attract more.
 Few players are sponsoring big sports events (cricket tournaments).
 NETMEDS has been sponsoring various cricket events like Asia Cup (2018).
MARKETING INITIATIVES:

15. E-PHARMACY: CHANGING THE
PARADIGM OF HEALTHCARE

16. • Price comparison of
medicines on E-Pharmacies
and retail pharmacies.
• Prices online are 10% - 20%
lower than in offline price.
• Online players cut out so
many of the costs – real
estate, inventory, salaries to
employees, utilities,
intermediaries.
• The only significant costs
that online players have are
related to delivery.
PRICE ADVANTAGE:
DRUG CONDITION DOSE (mg) PRICE
ONLINE (US $)
PRICE
OFFLINE (US
$)
AROMASIN Breast Cancer 25 78.76 84.11
DOCEZAP Breast Cancer 120 211.38 232.45
ABRAXANE Lung Cancer 100 243.42 251.90
GLUCOTROL Diabetes 5 0.16 0.16
METFORMIN Diabetes 500 0.26 0.27
TERBUTALI
NE
Asthma 0.5 0.48 0.57
THIAZIDE Fluid Retension 12.5 0.15 0.17

17.  E-Pharmacy model helps in implementing various government initiatives.
 Express delivery will be a key for E-Pharmacy players.
 E-Diagnostics service offered by E-Pharmacy players.
 Value added products/ services are being offered by the E-Pharmacies.
 Support from the government on various aspects.
E-PHARMACY THE CHANGE:

18.  A Separate license and registry of E-Pharmacy players should be created.
 Dispensation of scheduled drugs with valid registered prescription.
 Process the order for prescription.
 Audit trial should be digitally stored.
 Restriction of certain medications.
 Suitable arrangements must be made to ensure the medicines while delivering.
 The website/ mobile application needed.
 New optimization strategy required to automate the operation.
 Integrating the value chain.
RECOMMENDATIONS TO MAKE LONG TERM SUSTAINABLE:

19. BENEFITS OF THE E-PHARMACY MODEL:
TO PHARMACIES:
• Additional business opportunity.
• Inventory consolidation.
• Enhanced services of the pharmacies.
• Stimulate upgrades to the retail pharmacy model and the adoption of best global prices.
TO CONSUMERS:
• Increased convenience.
• Improved accessibility.
• Cost advantages.
• Improved patient compliance and education.
• Authenticity.
TO REGULATORS:
• Tracking of data.
• Medicine authenticity.
• Documentation and tax compliance.
• Innovation.

20. REFERENCE:
Ankit Goyal, Nirod Kumar Singh, Akshay Zanjurne. IN THE SPOTLIGHT: e-Pharmacy in India An
Exponential Growth Opportunity, FROST & SULLIVAN, 2019 Jan 21; 1-52.

21. THANK YOU