General perceptions about pharmacy profession is either about compounding and dispensing medicine or to be a caregiver by performing the role of community pharmacist. However, this is not all. This is the field with plenty of opportunities pertaining to entrepreneurship. “pharmapreneur” is the new upcoming domain synergised with serving the health care sector as a noble profession while setting profitable business at the same time. Pharmacy profession is critically controlled in terms of education quality by central apex agency as Pharmacy Council of India (PCI) in cooperation with various state pharmacy councils who are primarily responsible for regulation and harmonisation of the policies including framing of curriculum of pharmacy through education regulation throughout India. Many top pharma colleges in Nashik offer entrepreneurship opportunities through an on-campus entrepreneurship development cell to help innovative professionals set up a pharmacy business.
The PCI, as statutory organisation established under the law of Pharmacy Act 1948 regulates the pharmacy education, whereas CDSCO-Central Drugs Standard Control Organisation works to control the quality and efficacy of pharmaceuticals (drugs, dosage forms and medical devices) in India, under the Ministry of Health and Family Welfare. Pharmacists who have earned a D. Pharm, B, Pharm or an M. Pharm degree have thorough knowledge of the medicines and are well trained in pharmacy practice. They are considered the backbone of the healthcare sector and are involved in manufacturing various dosage forms in multiple national and international pharmaceutical companies.
How to Set up a Pharmacy Business in India?
While there are many amazing career opportunities in the pharma industry, the most lucrative career opportunity is setting up your own pharmacy business. According to recent statistics, the value of the Indian Pharmaceutical Market is approximately worth around 50 billion US Dollar in which almost 25 billion US dollar accounts for domestic consumption. As per the projection till 2025, the business of pharmacies is expected to reach up to 45 billion US dollar and estimated to reach to 54 billion US dollar by 2029, with cumulative annual growth rate of approx. 5%. Therefore in this article we are going to learn how to set up your own pharmacy business in India.
Classification of Pharmacy Store
There are various types of Pharmacy stores, based on the location and business capacity owned. First decisions need to be finalised as to which type of pharmacy store needs to be started. Retail pharmacy shops are generally established by individuals in residential areas where customers approach the pharmacy shop whereas hospital attached pharmacy shops are expected to serve the needs of the in-patient and out-patient departments of the hospital. Franchising is generally established under the big brands with corporate companies or proprietary partnerships.
Type of Ownership and Registration
Based on the type of business structure owners want to establish who will manage and run the pharmacy store will vary. There are various types of ownership or business structures classified as under:
Regulatory Requirement
As per the Drugs and Cosmetics Act, 1940 there are prescribed rules and regulations to establish the pharmacy store. Depending on the type of pharmacy business to be established, area requirement depends. For retail pharmacy stores minimum 10 square meters whereas for whole-sale drug stores 15 square meters. To maintain the stability and to protect the temperature-humidity sensitive medicines or medical devices (like few drugs, vaccines, injections) storage facility like refrigerator is required. Personnel involved in the handling medicines and dispensing must be technically qualified with certification of registered pharmacist, with minimum 1 to 4 years of experience depending on the compounding requirement of medicines. Only registered pharmacists with sufficient practical training of designated hours, have the knowledge, and experience to dispense schedule H and Schedule X drugs on prescription of registered medical practitioner.
Documentation and License Required
Registration of pharmacy business stores requires various documents that need to be submitted before final approval of the business structure. Following are the key considerations regarding license and registration.
1. Registered Pharmacist License:
To operate the pharmacy store, a Pharmacy License is mandatory. The Pharmacy store owner or personnel appointed must be qualified pharmacist with D.Pharm, B. Pharm or M. Pharm degree.
2. Establishment (Shop) Registration:
As per the Shop act, all establishments, stores or shops should seek the registration from local municipal or state corporations as per the rules prescribed to run their business. This is also a mandatory requirement for medical stores.
3. Drug License:
Before commencement of the business each pharmacy store must obtain permission in the form of license for procuring, storing and selling of drugs. Retail drug license or wholesale drug license can be opted as per the requirement. Licensee must have satisfactory qualification as D. Pharm, B, Pharm or M. Pharm from recognised institute or university. Depending on the type of store they may need to seek the drug license either from State Drugs Standard Control Organisation or CDSCO.
4. Goods and Service Tax Registration:
GST registration is mandatory, like any business, for pharmacy stores if the annual financial turnover of revenue crosses the threshold limit prescribed in the GST Act. As per the GST act for goods the threshold limit is 40 lakhs and for services it is 20 lakhs.
List of Documents Required
▪ Application for Pharmacy license
▪ Challan or receipt of fees paid
▪ Plan, layout or blueprint of premises
▪ Type of ownership or basis of possession of premises
▪ Proprietor Ownership proof
▪ Identity and address proofs of all owners/partners
▪ Registered Pharmacist Appointment letters or competent personnel
▪ Full time working Affidavit of Pharmacist
▪ Non-conviction affidavit of owner/proprietor
▪ Any other required registrations
Conclusion
Being a Pharmapreneur or owning your own pharmacy business is no doubt, better and stable career opportunity, as it is a venture with great potential for growth and profit due to ever increasing demands for quality medicines and health care products. In addition, it offers the opportunity to serve the patient community with right advice and help contribute to the patient’s health and well-being making it a noble career.