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Pharmaceutical Distributors and Wholesalers

Pharmaceutical Distributors are the part of pharmaceutical distribution channel who supply pharmaceutical products to retailers, hospitals, pharmacies, resellers and institutions etc.

Pharmaceutical distributors, stockists and wholesalers are synonyms. It’s very difficult to differentiate between wholesaler, stockists and distributors at some level. Some time they work independently but some time their works are similar irrespective of wholesaler, stockist and distributor.

For starting pharmaceutical distribution business, one needs to take wholesale drug license. Wholesale drug license is issued by licensing authority (Drug inspector or specify by state government) under district drug control office. This wholesale drug license is same in case of wholesaler, distributor, stockist, CFA, pharma marketing company etc.

A license on form 20B is issued for drugs other than those specified in Schedules C, C (1) and X to sell, stock, exhibit or offer for sale or distribute by wholesale and license on form 21B is issued for drugs specified in schedule C and C(1). If a wholesaler want to sell drugs specified in Schedule X then he has to take license on Form 20G for it.

For taking wholesale drug license, licensee has to compile with the specifications of drug and cosmetic act & rules. A license should have minimum of 10 square meters premises area and all activity are conducted under the supervision of competent person who is either a registered pharmacist, or has passed the matriculation examination or its equivalent examination from a recognised Board with four years‘ experience in dealing with sale of drugs, or holds a degree of a recognised University with one year‘s experience in dealing with drugs.

If drugs are sold or stocked for sale at more than one place, separate application shall be made, and a separate licence shall be issued, in respect of each such place.

Along with Wholesale Drug License, Goods and Service Tax Number (GSTIN) is also mandatory for licensee having more than 40 lakh annual turnover but most of distributors and wholesalers are in interstate trading which make it compulsory to have GST number. If pharmaceutical distributor is engaged into distribution of food supplement then FSSAI registration/license is required.

A pharmaceutical distributor distribute medicines in following ways:

Hope above information is helpful to you....
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

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