Medplus Health Services announced that its subsidiary, Optival Health Solutions Private Limited, has received a seven-day suspension order for a Drug License at one of its stores in Andhra Pradesh.

Suspension Details

The suspension order, issued by the Assistant Director, District Sales Licensing Authority, Drugs Control Administration, Ananthapuramu Zone-I, affects a store located on Kalyanadurgham Road in Andhra Pradesh. The order cites violations under Rule 65 of the Drugs and Cosmetics Act, 1940 and Drugs and Cosmetics Rules, 1945.

Financial Impact

Medplus Health Services estimates that the week-long suspension could result in a potential revenue loss of approximately Rs. 1.48 lakhs for the company. This figure highlights the importance of regulatory compliance in the pharmaceutical retail sector.

Regulatory Disclosure

The company disclosed this information in compliance with Regulation 30 read with Para A Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also adheres to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI Circular SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

Company Response

Manoj Kumar Srivastava, Company Secretary & Compliance Officer of Medplus Health Services, signed off on the regulatory filing. The company has stated that further details of the suspension order will be available on its official website, as well as on the websites of BSE Limited and National Stock Exchange of India Ltd.

This incident serves as a reminder of the strict regulatory environment in which pharmaceutical retailers operate and the potential consequences of non-compliance.

Medplus Health Services has reported multiple drug license suspensions affecting its subsidiary, Optival Health Solutions Private Limited. The company disclosed these developments in recent regulatory filings, revealing a series of suspensions across different states with potential revenue implications.

Karnataka and Andhra Pradesh Suspensions

Optival Health Solutions received suspension orders for drug licenses at two store locations:

1. A three-day suspension was issued by the Assistant Director of Drugs Control Administration in Karnataka for a store located at Fort Main Road Old Hubli. This suspension is expected to result in a potential revenue loss of approximately Rs 0.79 lakhs.

2. In Andhra Pradesh, the District Sales Licensing Authority suspended the license for ten days at a store situated in Venkataramana Colony Main Road, Kurnool District. The estimated revenue impact for this suspension is around Rs 4.60 lakhs.

Both suspensions were issued under Rule 65 of the Drugs and Cosmetics Act, 1940 and Drugs and Cosmetics Rules, 1945.

Additional Suspensions in Chhattisgarh and Telangana

Medplus reported two more suspensions affecting Optival Health Solutions:

1. The Assistant Drugs Controller of Bilaspur District, Chhattisgarh, ordered a five-day suspension for a store located at Swarnplaza, Bilaspur. This action is anticipated to cause a potential revenue loss of about Rs 4.00 lakhs.

2. In Telangana, the Assistant Director of Drugs Control Administration in Mahabubnagar issued a four-day suspension for a store in Shankarayapally Jadcherla Exp. The potential revenue impact is estimated at Rs 0.06 lakhs.

Cumulative Financial Impact

The total potential revenue impact from these four suspensions amounts to approximately Rs 9.45 lakhs. This figure includes:

Regulatory Compliance

Medplus Health Services Limited has made these disclosures in compliance with Regulation 30 read with Para A Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has stated that detailed information regarding these suspensions will be available on its official website, as well as on the websites of BSE Limited and the National Stock Exchange of India Ltd.

As the pharmaceutical retail sector faces increased scrutiny, these suspensions highlight the importance of maintaining strict compliance with drug regulations across different states in India. Investors and stakeholders will likely be monitoring how Medplus addresses these regulatory challenges and mitigates their impact on its operations and revenue.