Drug License

6 Viable Benefits of Wholesale Drug License that worth Your Attention

calendar26 Dec, 2020
timeReading Time: 4 Minutes
Benefits of Wholesale Drug License

Wholesale Drug License for the sale of drugs/medicine under Drugs and Cosmetics Rules in Form 20B & 21B is issued to the manufacturer or any other eligible candidates who wish to sell, stock, or sale drugs by the State Local Authority in India.

Wholesaler is being referred to entity that buys out commodities in bulk and resells them at nominal rate to retailer, who further sells out the commodities to the consumers. Wholesale Drug License is compulsory and cannot be replaced by another registration for the selling of drugs to the retailers.  In the write up, we will explain the benefits of Wholesale Drug License.

What is the Role of the Wholesaler in Drug-related Activities?

Keeping the consumer in view, the wholesale enterprises typically not involved with the direct selling of the product in a supply chain process. Their primary role is to purchase commodities from the manufacturer in bulk and then sell it to the retailers at the discounted rate. Wholesale Drug license is primarily granted in the 20B and Form 21B. The application for drug license should be filed in view of per drug and cosmetic act 1940 and rules 1945.

What are Sustainable Benefits of Wholesale Drug License?

Benefits of Wholesale Drug License

Following are the benefits of Wholesale Drug License that an individual can availed after being registered for the same.

Offer the Legal Ground for Executing Drug Related Activities

The unregistered entities are not eligible to undertake drug related activities in the country. The authority like CDSCO[1] has inculcated some strict provisions for the violation of the Drugs and Cosmetics Act, 1940.

The registered entities have to remain on their toes to ensure that their code of conduct is in line with the existing regulations. This may sounds like a burden for some companies, but it has some positive aspect as well.

Entities with drug license can enjoy seamless supply chain management of drugs.  The drug license, in a nutshell, empowers the retailers and wholesalers to continue their business proceedings without much of a hassle and legal complication.

Impart Transparency and Boost the Credibility of the Business

Ensuring compliance with Drugs and Cosmetic Act for consistently longer period could help the whole sellers to achieve the much-needed credibility in the market. Such license can pave the roadmap for success and creates endless opportunities that ensure sustainable growth. This is one of the standout benefits of Wholesale Drug License.

Ensure Better Management and Efficacy

Ensuring the conformity with CDSCO’s compliances may create at the initial stage, but with times it can have positive impact on the company’s efficacy provided the owner is willing to stay in the line with the given Act.

Help in Keeping the Drug in Best of the State

It’s really intimidating for the new entities to keep drugs safe from possible contamination. However, by the following guidelines for procurement of drug (outlined by the CDSCO in view of Drug & Cosmetic Act, 1940), the wholesalers can maintain best possible hygiene for their drug procured in an isolated zone. The drug license holders are constantly intimated by the authority via official notification about the new updates for procurement procedure of the drugs.

Helps In Establishing Strong Relation with the Retailers

In general, Drug retailer’s remains at extreme caution while purchasing drug from the wholesalers. They are too concerned about the quality, storage, and pricing of the drug before making the actual purchase.  However, with wholesale drug license in place, they do not have to worry about all those attributes. The license is itself is a proof that the entity is following every possible measures outlined by authorities to ensure transparency in their code of conduct. 

Increase Market Reach Due To Legal Status

Wholesale drug license not only helps the entity to meet their business goal but also increase the market exposure with time.  With improved visibility as a brand, the whole seller can take a step forward and look out for new market opportunities for expansion of their business. Wholesale drug license could leave a long lasting impact on a business as far as the growth potential is a concerned. The benefits of Wholesale Drug License are practically endless from the growth perspective.

So, these are standout benefits of Wholesale Drug License, now let’s move to the next section that explain different types form for selling the drug.

Forms for Wholesale Drug License to Sell Drugs

  • A license regarding the selling, stocking, and distribution of drugs (excluding those listed in Schedules C, C (1) and X) will be issued in Form 20-A or Form 20 –B, depending on the circumstances.
  • A license regarding the selling, stocking, and distribution of drugs (excluding those listed in Schedules C, C (1) and X) will be issued in Form 20-A or Form 20 –B, depending on the circumstances.
  • A license regarding the selling, stocking, and distribution of drugs listed in Schedules C, C (1) will be issued in Form 21-A or Form 21 –B, depending on the circumstances.
  • A license regarding the selling, stocking, and distribution of drugs listed in Schedule X via wholesale and retail will be issued in Form 20-G, depending on the circumstances.
  • Applications for the renewal or issuance of a license to stock, sell, exhibits or distribute drugs (excluding those listed in Schedule X), must be applied in Form 19 or in case of drug listed under Schedule X will be made in Form 19-c.


Despite stringent rules and regulations, the company can avail ample benefits from a Wholesale Drug license. Since, drug license has a global recognition, it open endless possibility of growth for companies.  Drug license holders are supposed to remain in compliant with the provisions of CDSCO. Procurement and selling of drugs is subjected to endless rundown of compliances. That’s where professional guidance comes so handy.  At CorpBiz, our professionals make sure that our client dealing drug business remains abreast of legal obligations. We not only help clients meeting the constantly evolving compliances but also paved down way for maximizing efficacy of the workflow.

Read our article: What Are The Most Profitable Drugs Ever?