Servier India Pvt Ltd., a unit of French drugmaker Servier, has withdrawn its exclusive distribution arrangement for its anti-hypertensive product portfolio with Entero Healthcare, following industry pushback over concerns of monopolistic practices and potential supply disruptions.
The move comes after the All India Organisation of Chemists and Druggists (AIOCD) raised red flags about the deal, warning that such exclusivity could lead to market distortion, reduced competition, and medicine shortages. The association, representing thousands of pharmaceutical distributors and retailers, engaged in direct mediation with Servier to reverse the decision.
In a letter dated May 26, Servier informed trade partners that the exclusive arrangement had been discontinued with immediate effect, and that product supply would now resume through its broader distribution network.
“This is a positive and encouraging step toward preserving balance and fairness in our open trade practices,” AIOCD said in a statement, thanking Servier for its cooperation and responsiveness.
The now-cancelled deal had granted Entero Healthcare exclusive rights to distribute Servier’s anti-hypertensive drugs—a move that many in the trade feared would centralize control, limit access, and disrupt pricing dynamics in the cardiovascular segment.
The reversal is seen as a win for decentralized distribution and a signal to other pharma companies considering similar exclusive tie-ups. AIOCD reaffirmed its commitment to opposing any practices that “threaten the rights and interests of our members and the overall trade.”
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