Frequently Asked Question Related to Pharmacy Store in India

In this article, we are going to cover the question which is asked frequently by by pharmacists and Pharmacy owners while opening a Pharmacy or Chemist Shop.  Commonly asked questions are:

  • Am I eligible to give my license after my Pharmacy Education?
  • How many Chemist Shops or Pharmacies I can Open with my License?
  • Can I give my license to more then one Medical Store?
  • Can I pursue Job along with Chemist Shop?
  • Can I open Pharmacy Store with Government Job Pharmacist License?
  • Can one State Pharmacist open medical store in other State? etc
  • Do I need Drug License as I am a Registered Pharmacist?
  • Can’t I get Drug Retail license if I don’t have any pharmacy graduation or diploma.
  • Do I need two drug license One for Wholesale and One for Retail?

For knowing answers of above questions, first we need to know about few technical terms i.e. Retail Drug License, Whole Sale Drug License, Pharmacist, Pharmacist Registration, Pharmacy and Chemist.

Read Related: What does it mean by Compounding, Dispensing, Patient counselling and Pharmaceutical Care?

Retail Drug License: Retail Drug License is a certificate issued by Drug Control Office appointed by state government to conduct sale, purchase, stock, exhibit of medicines and drugs at retail basis under supervision of a registered pharmacist.

Wholesale Drug License: Wholesale Drug License is a certificate issued by Drug Control Office appointed by state government to conduct sale, purchase, stock, exhibit of medicine and drugs at wholesale basis under supervision of a competent person.

Read Related: Difference Between Wholesaler and Retailer

Pharmacist: Pharmacist is a person who has at least diploma, degree and/or doctor of pharmacy qualification.

Registered Pharmacist: Registered Pharmacist is a person who possessed above mentioned qualification and his/her name is registered under State Pharmacy Council as a Pharmacist as per drug and cosmetic act & rules.

Pharmacy and Chemist Shops: These are the name of retail counters of medicines and related substances who possess a retail license and require service of a registered pharmacist.

Read Related: Difference between Pharmacy and Chemist/Druggist?

Most of Pharmacists use word license while communicating about his/her eligibility as a authorized person to conduct operation at Pharmacy and Chemist Shop. Here we want to confirm that its not a license. Its only your registration. License is provided by Drug Control office for opening Retail or wholesale of medicine for that you are eligible as a competent person after your Pharmacy Qualification. Your pharmacy qualification is not a license.

Even without Registration as a Pharmacist under State Pharmacy Council of concern state where you want to pursue your career or business, you are not eligible as a authority to conduct any activity in Pharmacy and Chemist Shop. That’s the answer of question number one listed above.

You are not eligible only after your pharmacy education to become competent person for opening pharmacy and chemist shop or pursue your job as a pharmacist until you register your name under state pharmacy council of concern state.

Now come to more questions:

First we want to confirm that you don’t have any license, you have only registration as a pharmacist. When you attach your registration and pharmacy qualification certificates with any retail drug license, that’s mean you are working there as a full time employee.

In simple words, when you give your license (i.e. registration certificate) to any pharmacy or chemist shop, you become his/her full time employee. Full time employee means Eight hour working. According to law, a person can do full time job at only one place. Part time you can do but as a part timer, you can’t be competent person at any other retail shop. That’s mean you can only give your license (i.e. registration) at only one chemist and pharmacy shop.

As a Government Pharmacist, you are a full time pharmacist employee for government, same is applicable here that we discussed above.

Few queries we received from our readers are related to opening pharmacy business in state other than where they are registered as a pharmacist. If you have same query then there is simple method to do it.

A Pharmacist is eligible to register his/her name under any state pharmacy council. You can register your name under concern state pharmacy council where you want to start your own pharmacy business but for that you have to leave registration of previous state pharmacy council before applying for registration in another state pharmacy council register. Without migrating pharmacy registration, you can’t conduct pharmacy business in other states.

Now come to the question asked by our reader about opening retail drug store without having pharmacy education.

Without pharmacist, you can’t get any retail drug license. If you or your partner don’t have any pharmacy qualification and you want to open retail drug store then you need to hire a pharmacist as a full time employee. Some person hire pharmacist at part time basis (In simple word, rent a pharmacist registration) but it is illegal under drug and cosmetic act. A single medicine can’t be dispensed in the absence of pharmacist. A pharmacy and chemist shop should only conduct medicine related business till pharmacist is present there.

If you want to do wholesale and retail drug store in single premises, then you need to apply for wholesale plus retail drug license. Requirements and documents will be same, only space required will need extra.

Hope above information is helpful to you….

For any query and suggestion, you can write us at pharmafranchiseehelp@gmail.com

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If your query is not present in above linked articles, then mail your query at pharmafranchiseehelp@gmail.com

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If your query is not present in above linked articles, then mail your query at pharmafranchiseehelp@gmail.com

How many Chemist Shops could be opened with a Pharmacist License?

Query:

I am a B pharma student after my graduation can I start multiple medical store on basis of my licence

Response:

One Pharmacist can open only one Chemist Shop. You can’t open multiple medical store on the basis of your license. At one license, one shop could be opened….

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List of old articles for our New readers….

At our new reader demand, we are preparing a general list of our popular articles. You can read articles by clicking at particular article below. Hope this will be helpful for our new readers to read our old articles. In future we will also try to add our new articles in this list. For any suggestion and query, mail us at pharmafranchiseehelp@gmail.com

What is Marketing Address ? Is it possible to have marketing address and operation from different places?

Query:
What is the important of MARKETING ADDRESS? Is it possible to print marketing address on product is XYZ and operate it through another address? Please guide !

 

Response:
What is Marketing Address ( Marketed by Address)?
Every company that doesn’t have own manufacturing unit get manufactured its brand from other companies those have own manufacturing unit. These companies are considered as marketing companies. Marketing Companies are the companies who don’t have own manufacturing and get manufactured own brand at third party/contract manufacturing or Loan License manufacturing basis from manufacturing companies.

Marketing companies have to show ownership of its brand to customers by showing their company name and address indicating marketed by or promoted by like abbreviations. At Pharmaceutical products, label should have printed both manufactured by and marketed by address and name.

Important of Marketing Address:


Marketing Address is first thing that is seen by stockist/distributors, retailers/chemists, doctors and other professionals. It provides the information of company location and company base. Every one will ask about from where is company base or from where is this company. Then it become important to show them the company location. Marketing address provide great help to show them company base or location.

Marketed by address also helpful in hiding your direct connection with ownership of company. You can’t say or show its your company or you have franchise or pcd of this company. Show them you are working in it until company has made good presence in market. Otherwise it can produce negative impact at company reputation. I have lot of examples who did same mistake and result in failure.

It become difficult to sell products locally with local marketing address. It doesn’t produce good impression at others mind. People will take company lightly. Marketing address can hide local connection of company. Marketing address will say company address, not yours.

Some places have great impression at mind set of persons for particular sector. In pharmaceutical sector, Gujarat consider to be good option for marketed by address along with Bangalore, Hyderabad and Mumbai marketing address. Marketing addresses from these places also consider to be best option for marketed by address.

Some places consider to be of low standard from point of view of pharma companies. Professionals generally avoid companies having address from these places but that doesn’t mean companies having address of these places don’t produce good business. There are also have big names but few companies disgrace location by misbehaving or cheating with customers.

Don’t underestimate the value of marketing address at your products packaging. It can change fate of your company. Marketing Address tells about company portfolio.

Marketing Address and Operation Address:


It is possible to print marketed by address from other place and operation from other place. But you should have real address (whether you operate from there or not) that are printed at your packing e.g. it could be your registered office or operational office or vocational/functional office or meeting office or your home or rented premises etc. You can operate from other place where you have drug license number and other documents.Approximately 95% marketing companies do this. They have marketed by address of other place and operated from another place. You could have office at more than one location any where in India. One office you can have in Manimajra (Chandigarh) and at same time you can open new office in Ahmadabad (Gujarat). You can show your marketing address of Ahmadabad at products and can operate from Mani Majra.

Suppose you have a company based at Karnal (Haryana). You want to sell products locally at Karnal and other districts of Haryana. If you will have marketing address from karnal. Can you sell products at Karnal with this address? I can’t say about others but I can’t. People will say,” Its a local company.” No one will be interested in local brands and local company. People consider it inferior. That’s human being’s mindset.

You make a little difference. You only change marketing address that is printed. You become outside brand in spite of operation from Karnal. You will say to others, its a big brand from that city and you are launching it in Karnal. That create difference in your confidence and marketing.

Marketing Companies follow the same theory. They show their self from other states and cities and successfully do business in their territory. You can also do the same thing.Marketing address not only change your brand value but also change in your identity in market.

Related: Types of Marketed by Address

What is the difference between pharmaceutical loan licensing, third party manufacturing and pcd/franchise?

Hope it was helpful to you…

For any suggestion and queries, mail us at pharmafranchiseehelp@gmail.com

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14 things every pharma professional should know !!!

Our readers ask us about number of questions related to pharmaceutical market. To provide answer of all questions independently is not possible for us. So, we are including few question in single article.

What is Drug License?

Answer: A Drug License is a certificate/license/authorization issued by Drug Control Authority for conducting a particular task e.g. sale, purchase, stock, exhibit, test, manufacture, distribute, import, export or any other covered under Drug and Cosmetic Act & Rules, 1945.

Read: List of Licenses required to Start Pharmaceutical, Ayurvedic and Cosmetic Business

What is Drug License Number?

Answer: Every Drug License has a number which is used as to maintain all record related to applicant and his firm. This number is known as Drug License Number.

What is required for Starting Pharma Wholesale Distribution?

Answer: For Starting Wholesale Business in pharmaceutical sector, we need Wholesale drug license. One of the most important thing to consider while starting wholesale distribution, we should have good network channel for distributing our products. read in detail about wholesale Drug License Number

What is required for Starting Pharma retail Pharmacy?

Answer: For Starting Pharma Retail Business in pharmaceutical sector, we need Retail drug license. Location is price factor in retail pharmacy and chemist shop. Registered Pharmacist is must for starting retail pharmacy. read in detail about pharma retail shop license

Licenses Required to Start Pharmaceutical Marketing Company?

Answer: There is requirement of following licenses to start pharmaceutical marketing company:

Wholesale Drug License
GST Identification Number
Company Registration
Brand Name/Company Name Trade Mark registration
FSSAI Registration

Licenses Required to Start Pharmaceutical Manufacturing Company.

Answer: There is requirement of following licenses to start pharmaceutical manufacturing company:
Drug Manufacturing License Number
Wholesale Drug License
GST Identification Number
Company Registration
Brand Name/Company Name Trade Mark registration

How to register Trade Mark/Brand Name in pharma?

Answer: Pharmaceutical sector also has to follow procedure to register its brand name like other sectors. Go to the ipindia.nic.in site. Click at trade mark and you will be redirected to http://ipindia.nic.in/tmr_new/default.htm. Then click at public search. In new tab http://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx will be opened. Change search type to phonetic. Enter your brand name or company name and class. For pharmaceutical product’s brand name and pharma manufacturing units you have to enter class ‘5’ and for trading and marketing companies enter class ’35’. Here you can search for existing brand names and company name.

What is Pharmaceutical Trading?

Answer: Sale and purchase of pharmaceutical products and services e.g. medicines, hormones, vaccines etc are known as pharmaceutical trading. For pharmaceutical trading, you should have licenses and documentations as per government and drug department record. Doing this without any formalities is a punishable crime. Pharmaceutical traders includes chemist, distributors, c&f, marketing companies, raw material supplier etc. Must have documentation includes drug license number and GST for doing pharmaceutical trading.

What is Pharma Purchase and Pharma Sale?

Answer: Purchasing of pharmaceutical products or services from authorized pharmaceutical trader or manufacturer is known as pharma purchase and selling of pharmaceutical products or services to authorized pharma trader or manufacturer is known as Pharmaceutical sale.

What does Franchise mean in Pharma or what is Pharmaceutical Franchise?

Answer: Franchise means liberty and in pharma it also justify its meaning. Franchise in pharma is used for companies and distributors/pharma professions those work at franchise basis. Pharma Franchise means authorization by pharmaceutical company to distributor or person or group of distributors or persons to access or use its company name, brand name, products, services etc. Company also authorized to perform commercial activities like marketing, sale, purchase, authorization of agent(distributor, stockist, c&f etc), promotion etc on behalf of company. Read more about pharma franchise

How to calculate MRP, PTS and PTR?

Answer: In Pharma marketing, we have to calculate number of things to provide rates and margin to retailer, stockist, c&f, and your margin etc. Calculation is not as complicated as it feels. We will have manufacturing cost or get products at net rate basis or offer basis in Pharma marketing, then we have to find price to retailer/price to stockist, your profit margin, expenses etc. Simple formula used in calculations is MRP or Rate *100/(100+percentage).

How much profit margins in Pharma?

Answer: Pharmaceutical market is not exception when it comes to margin of retailer and stockist. Retailer margin is generally 20% or some time with scheme. Stockist margin is 10% or some time with scheme. C&f margin is 6-8% or sometimes with scheme. Companies reserve their rights while calculating their margins but in most of cases it is nearly 20-25%. Above margins may vary company to company, products to products or area to area etc. Read in Detail about Profit Margin in Pharma

What are the Different aspects or types of marketing?

Answer: Below types of marketing aspects is used in pharmaceutical marketing.

Read in detail about pharmaceutical marketing here

What are the Distribution and Trading Pharma Companies?

Answer: Distribution and Trading Pharmaceutical companies are the companies those don’t have own pharmaceutical manufacturing facilities and get manufactured products at their own brand name through outsourcing at third party or loan license or contract manufacturing basis. In India, large number of pharmaceutical distribution/trading companies are present.

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For any suggestion and queries you can contact us at pharmafranchiseehelp@gmail.com

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