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Pharmaceutical Supply Chain Fault Line Exposed as Government Pushes for Patient- Friendly Medicine Sales

The Indian government's proposal to allow patients to purchase medicines in exact quantities rather than full strips has sparked a heated debate in the pharmaceutical supply chain. Chemists and drugmakers are warning that strip-cutting poses significant regulatory, operational, and financial risks.

The issue gained urgency following reports that regulators are re-examining rules governing retail sales and patient access, prompted by consumer complaints that pharmacies often insist on selling entire strips even when doctors prescribe fewer tablets. While consumer groups see the shift as patient-friendly, industry participants argue that the current regulatory framework is ill-equipped to support such a transition.

Industry participants point out that there is a lack of clarity in the law, leaving pharmacists to face a daily dilemma of "to cut or not to cut" medicine strips in the absence of written guidance. Changing the packaging of medicines is not easy, as it has regulatory and cost implications on manufacturers.

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At the Heart of the Resistance: Traceability and Liability Concerns

At the heart of the resistance is traceability. Once a strip of tablets or capsules is cut, essential information such as the batch number, manufacturing date, and expiry date often no longer exist. This raises concerns about pharmacovigilance and the ability to reliably trace adverse drug reactions back to a manufacturing batch.

Retailers fear legal liability if regulators hold them accountable for selling medicines lacking mandatory information when dispensing exactly what a prescription demands. Under the Drugs and Cosmetics Rules, drugs must carry complete labelling, and stocking medicines without these details is an offence.

Retailer ConcernsPharmaceutical Company Response
Liability for selling medicines without batch numbers, manufacturing dates, or expiry datesRedesigning blister packs with perforations and printing batch and expiry information on every pocket
Difficulty in tracking loose tablets and managing inventoryExpensive retooling of high-speed packaging lines

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Pharmaceutical companies also draw flak from chemists and their trade bodies for designing strips with high tablet counts. Oversized packs force unnecessary strip cutting, increase wastage, and shift inventory and compliance risks onto retailers rather than aligning packaging with real-world prescribing needs.

Disrupting Inventory Management and Compliance

Strip-cutting also disrupts inventory management. Retailers say tracking loose tablets introduces manual complexity and raises the risk of accounting errors. Broken strips often turn into "dead stock", especially for high-value or slow-moving medicines, with pharmacies bearing the full loss if unsold tablets expire.

For pharmaceutical companies, fixing the problem is far from trivial. Government officials have suggested redesigning blister packs with perforations and printing batch and expiry information on every pocket. While theoretically possible, manufacturers say this would require expensive retooling of high-speed packaging lines.

A Debate Reignited

Many chemists' associations earlier sought clarification on whether strip-cutting is permitted. Despite decades of debate, the Drugs and Cosmetics Act remains silent on blister-pack cutting, leading to divergent interpretations by regulators and enforcement officers across states.

"We are ready to cooperate in public interest," said Rajiv Singhal, general secretary of the All India Organisation of Chemists and Druggists (AIOCD), which represents over 1.24 million chemists and distributors. "But we need clarity and support from the government."

Investor Takeaway

Investors should be cautious of potential regulatory changes affecting the pharmaceutical industry.

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