GST’s attack on pharma’s weakest link: distribution

Age: 30. Nature: Unpredictable. Size: 80,000+. Status: Diminished by 25%, in just 15 months. Prognosis: Pharma distribution is under the scalpel

Since GST was implemented, India’s labyrinthine drug distribution network has begun to change rapidly

The majority of large carry and forwarding agents and small distributors have lost business

The supply chain is now simplifying, with e-pharmacies and private equities like Everstone Capital developing their own supply chains

As drug manufacturers get closer to patients, drugs are getting more accessible. But can they get more affordable?

At least once a month, Bhavik Kumar, founder and CEO of Medibox, gets a panicked call. The callers are worried Indian medicine distributors, desperate to either shut down or get acquired. As the head of Medibox, a digital platform for e-marketing, e-procurement and e-distribution of medicines and healthcare products, Kumar is in a unique position. While, on the one hand, his platform helps connect distributors to pharmacies, the network he has created means that Kumar is able to help connect these beleaguered distributors to potential buyers. One way or the other, Kumar does what he can.

Ever since the inception of the Goods and Services Tax (GST) on 1 July 2017, the calls have only increased in frequency.

AUTHOR

Ruhi Kandhari

Ruhi writes on the impact of healthcare policies, trends in the healthcare sector and developments on the implementation of Electronic Health Records in India. She has an M. Sc. in Development Studies from the London School of Economics.

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