French Firm Servier Drops Exclusive Deal For Selling High BP Drugs After Chemists' Pushback

News18

3 days ago

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After successful mediation by offline chemists, Servier promptly withdrew the agreement – which is seen as a positive step towards preserving the fairness of open trade practices.
In a major development impacting the pharmaceutical distribution landscape in India, an Indian arm of French drugmaker Servier has officially withdrawn its exclusive distribution agreement for its anti-hypertensive product line, reverting to conventional distribution practices.
The move comes after the apex lobby of offline chemists, All India Organisation of Chemists and Druggists (AIOCD), raised concerns, alleging the potential monopolistic implications of Servier's deal with Entero Healthcare, a supply chain specialist company. AIOCD represents more than 12 lakh chemists and distributors in India, pushing Servier to discontinue the arrangement of supplying certain products via Entero.
The majority of the AIOCD's partners refused to sell the drugs sold by the French drugmaker. After facing industry pushback, in a letter dated May 26, 2025, Servier India informed its trade partners that it has 'discontinued exclusive distribution arrangement for anti-hypertensive range of products" with immediate effect. The letter has been seen by News18.
This update follows a formal communication by AIOCD on May 28, addressing the issue. The letter detailed how many members of the organisation had expressed concerns over the exclusivity agreement, warning that it could lead to discriminatory trade practices, shortages in essential medications, and the formation of monopolistic structures within the pharmaceutical supply chain.
AIOCD, in a letter, said that the organisation mediated with Servier to ensure a fair resolution. 'After successful mediation by AIOCD, the company has promptly withdrawn the said exclusive distribution agreement. This is a positive and encouraging step toward preserving the balance and fairness in our open trade practices," the letter read.
The development is being seen as a victory for chemists and druggists across India, many of whom feared market distortions and reduced access to essential medicines due to exclusive arrangements.
'We have had fruitful discussions with AIOCD. Servier India is focused on improving patient access to our quality medicines. We will continue to engage constructively with all stakeholders," Aurelien Breton, managing director, Servier India told News18.
Brenton told News18 that he is thankful to AIOCD 'for the constructive dialogue, which allowed us to resolve the matter amicably in the interest of the healthcare community and patients at large."
'Servier is a global pharmaceutical group governed by a nonprofit foundation, committed to making a meaningful social impact for patients and contributing to a sustainable world." Headquartered in France, Servier operates in around 140 countries.
Sources close to the development told News18 that, 'Servier's management rushed the distributor appointment, with inadequate market assessment and due diligence. However, now, it has made right decision following the general rules of the Indian pharma trade market."
First Published:
June 02, 2025, 12:40 IST