Online drug sales: Revolution or Risk for the Pharmaceutical Sector?

The COVID-19 pandemic served as a catalyst for the digitization of the pharmaceutical sector. Traditional pharmacies had to quickly adapt to online sales to meet growing consumer demand. This transition has been facilitated by authorized online platforms, such as those listed by the Ordre des pharmaciens(source), but it has also raised new challenges.

1. The emergence of e-pharmacy in France

Since 2013, e-pharmacy has been authorized in France, but its growth has been hampered by strict regulations. According to 3S Santé, although e-pharmacy is growing, the online sale of medicines remains tightly controlled. These regulations are designed to ensure consumer safety and maintain the quality of pharmaceutical products.

Key steps :

1. Linked to a physical pharmacy: The e-pharmacy must be linked to an existing physical pharmacy(Captain Contrat).
2. Obtaining authorizations:
3. Authorization from the Agence Régionale de Santé (ARS).
4. Declaration to the French Pharmacists Association(LegalPlace).
5. Compliance with regulatory framework: Compliance with regulations specific to products sold online, including medicines, cosmetics and dietary supplements(DUMAS - CNRS).
6. Administrative procedures:
7. Pre-application and ARS opinion for the opening of a pharmacy(Le coin des entrepreneurs).
8. Submission of required documents, such as pharmacist's diploma(ARS Paca).

2. Safety and regulations

Consumer safety is a major concern in the online sale of medicines. TheInstitut de Recherche Anti-Contrefaçon de Médicaments (IR ACM) reports that 96% of online pharmacies are illegal, exposing consumers to significant risks. These illegal pharmacies can sell counterfeit or unapproved medicines, putting users' health at risk. Combating counterfeiting is another crucial challenge. Interpol's Operation Pangea in 2021 highlighted the scale of the problem, with the seizure of millions of counterfeit medicines sold online. Laboratories can see their products copied and sold without respect for quality standards, which can damage their reputation and, more importantly, put patients' health at risk. What can be done about it? Improving traceability (blockchain), creating secure packaging, raising consumer awareness, collaborating with regulatory authorities, supplier audits, labeling and certification...

3. Economic impact and competition

The arrival of e-pharmacy is having a significant economic impact on traditional pharmacies. A paper by HAL Univ. Lorraine points out that online sales could confine the economic impact to the voluntary medical products (PMF) sector, thus altering market dynamics. Traditional pharmacies must adapt to this new competition by integrating digital strategies. This evolution is not limited to one region; it is taking place on a global scale. Pharmacies must now compete with large-scale online players, while maintaining product quality and safety. Online giants such as Amazon have entered the market with services like Amazon Pharmacy in the USA, offering online prescription drug sales with discounts of 80% on prescription and non-prescription medicines, marking a significant turning point in pharmaceutical distribution.

4. Digitalization and customer relations

Digitalization is transforming the relationship between pharmacies and their customers. While online sales offer convenience and accessibility, they are also changing the dynamics of the customer-pharmacist relationship. Pharmacies now have to manage an effective online presence, while maintaining quality of service and advice. In France, a large proportion of patients are very attached to the welcome and care provided by the pharmacy team during their visit to the pharmacy. The relationship of trust with the pharmacist as a healthcare professional remains a major asset for patients seeking advice on their treatments and health. A DUMAS paper explores how pharmacies can integrate digital into their business model to respond to evolving purchasing behaviors. This adaptation is crucial to maintaining relevance and efficiency in a changing market. The integration of blockchain technology is one example of how the sector is adapting. Merck's pilot project for vaccine traceability shows how this technology can be used to ensure the safety of pharmaceutical products. In addition, artificial intelligence and machine learning are increasingly being used to personalize customer interactions and improve operational efficiency.

5. Outlook and regulatory challenges

The BearingPoint blog discusses the prospects for e-commerce in the pharmaceutical sector in France. Current regulatory constraints limit online sales to certain products, but they also offer opportunities for growth and innovation for companies that adapt. In addition, compliance with regulations such as RGPD in Europe is crucial. Pharmacists and laboratories must navigate a complex regulatory landscape, ensuring that all online transactions meet data privacy and security standards. With online sales, laboratories and pharmacists have to manage large amounts of sensitive pharmacy and patient data. They must therefore implement robust systems to protect this data against breaches and cyber-attacks. Failure to comply with these regulations can result in substantial penalties.

The online sale of medicines is a revolution in the pharmaceutical sector, offering convenience and accessibility to consumers. However, it also presents risks and challenges, particularly in terms of safety, regulation and economic impact. Pharmacies must adapt to this new reality, integrating digital strategies and complying with strict regulations to ensure consumer safety.

References

1. 3S Santé - The development of e-pharmacy on the French market
2. https://info.haas-avocats.com/droit-digital/le-commerce-de-medicaments-sur-internet-est-il-legal
3. RFCRPV - Buying drugs over the Internet: what guarantees, what risks?
4. HAL Univ. Lorraine - The dematerialization of drug sales: economic impact
5. DUMAS - What role should e-commerce play in the pharmacist-patient relationship?
6. BearingPoint - eCommerce and the pharmaceutical market: what's the outlook in France?
7. DUNE - ELECTRONIC DRUG SALES IN FRANCE, SELF-MEDICATION AND THE SITUATION OF ONLINE PHARMACIES
8. Cairn.info - Drug market characteristics and pharmaceutical company strategies