Medplus Health Services Limited recently announced that its subsidiary, Optival Health Solutions Private Limited, has received suspension orders for drug licenses at two of its stores in Telangana. The suspensions, issued by the Assistant Director of Drugs Control Administration, Medchal, affect stores located in Balanagar Ground Floor and 3rd Phase Kphb.

Suspension Details

The regulatory action was taken due to violations under Rule 65 of the Drugs and Cosmetics Act, 1940 and Drugs and Cosmetics Rules, 1945. The specifics of the violations were not disclosed in the announcement.

Duration and Financial Impact

The suspensions vary in duration and estimated financial impact:

Implications for MedPlus

While the immediate financial impact appears limited, with a total estimated revenue loss of Rs. 1.76 lacs across both stores, the suspensions raise questions about the company's compliance practices and could potentially affect investor confidence.

Industry Context

This incident highlights the strict regulatory environment in which pharmaceutical retail chains operate in India. Compliance with the Drugs and Cosmetics Act and its associated rules is crucial for maintaining operations and public trust in the pharmaceutical retail sector.

Medplus Health Services Limited and its subsidiary Optival Health Solutions will need to address these compliance issues promptly to minimize any potential long-term impact on their operations and reputation in the Telangana market.

Medplus Health Services Limited , a prominent player in the Indian pharmacy retail sector, has reported that its subsidiary, Optival Health Solutions Private Limited, has received suspension orders for drug licenses at two of its stores in Telangana. This development comes as a result of violations under the Drugs and Cosmetics Act, as determined by the Assistant Director of Drugs Control Administration.

Suspension Details

The suspensions affect two stores in Telangana:

Regulatory Compliance

According to the LODR (Listing Obligations and Disclosure Requirements) data filed by MedPlus Health Services Limited, the suspension orders were received on October 18, 2025. The company has promptly disclosed this information in compliance with SEBI regulations, specifically citing:

• SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023
• SEBI Circular SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024

Violation Details

The suspensions were issued under Rule 65 of the Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945. While the specific nature of the violations has not been detailed in the disclosure, these regulations typically cover a wide range of compliance requirements for drug retailers, including proper storage, dispensing practices, and maintenance of records.

Impact Assessment

MedPlus has provided an initial assessment of the potential financial impact:

• The Balanagar Ground Floor store may face a revenue loss of approximately Rs. 0.48 lacs.
• The 3rd Phase KPHB store could see a revenue loss of around Rs. 1.28 lacs.

While these figures represent a relatively small portion of the company's overall operations, they underscore the importance of regulatory compliance in the pharmaceutical retail sector.

Company Response

MedPlus Health Services Limited has stated that the suspension details will be made available on the company's official website, as well as on the websites of BSE Limited and the National Stock Exchange of India Ltd. This transparency aligns with the company's obligations as a publicly listed entity.

The incident serves as a reminder of the strict regulatory environment in which pharmaceutical retailers operate and the potential consequences of non-compliance. As the healthcare sector continues to be under scrutiny, such regulatory actions highlight the ongoing challenges faced by companies in maintaining operational standards while ensuring public safety.