MedPlus Hit by Surprise License Suspensions—How Big Is the Impact?

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MedPlus Health Services Ltd is dealing with a series of drug license suspensions affecting its subsidiary, Optival Health Solutions, across several states. These suspensions, issued by state drug authorities, have led to temporary closures of certain pharmacy outlets and are expected to result in a combined revenue loss of nearly ₹6.5 lakh.

Key Highlights:

Optival Health Solutions received a five-day suspension order for a store in Tamil Nadu, effective June 11, 2025. This alone could mean a revenue loss of approximately ₹4 lakh.
Earlier in June, three stores operated by the subsidiary faced suspension orders, leading to an estimated revenue loss of about ₹2.74 lakh.
Another store in Maharashtra was hit with a three-day suspension starting June 10, 2025, with a projected revenue impact of ₹1.5 lakh.
The suspensions were issued under the Drugs and Cosmetics Act, 1940, following regulatory inspections. MedPlus has stated that it is reviewing these orders and considering its next steps.

Despite these setbacks, MedPlus continues to operate one of the largest pharmacy chains in India, with a strong track record of regulatory compliance and expansion.

The company has assured stakeholders that these incidents are isolated and not expected to have a material effect on its overall financial health.

MedPlus’ management is actively engaging with authorities to resolve the issues and restore normal operations at the affected locations as quickly as possible.

Sources: StockInsights.ai, HDFC Sky, NDTV Profit