Third Party Contract Manufacturing Work In Pharmaceutical Industry
Pharma Contract Manufacturing: Contract Manufacturing is the most opted for model in the third party manufacturing pharma supply chain. With the advent of technology and easy access to pharmaceutical information, more and more people are opting for the Pharma Contract Manufacturing model rather than opting for a franchise. Here is how the two differs:
- Contract Between Third Party Medicine Manufacturer and Pharma Franchise Partners:
This contract states that the franchise partners will sell the manufacturing company products on a monopoly basis in only a given territory. The rates are fixed for a time period of 1 year and are much higher than the third party pharma manufacturing rates.
- Contract Between Generic Third Party Manufacturing and Marketing Company:
This contract states that the marketing company can sell their brand products anywhere they want without any obligation to inform manufacturer about this. The rates are valid for a very short time period and are much cheaper to the pcd pharma franchise rates.
Process Of Third Party Pharma Manufacturing
There are many third party manufacturing pharma companies that do not make products by themselves, but they run their own pharmaceutical business. Developing a good working relationship between the marketing company and its third party manufacturer is essential in this case. We will explain the Third Party Pharma Manufacturing Process. This includes every detail from cost to taxation which is the main part of this process.
After that, have the proper conversation with the selected third party manufacturer about all products you need the manufacturer to manufacture in your pharmaceutical company’s name. Ask about costing and taxation rates. After finalization of all your queries, there are some of the phases of running the third party manufacturing pharma process.
Many pharmaceutical companies choose to engage in third party manufacturing to ensure that their drugs are sold at a very reasonable rates in the market. Such companies utilize independent manufacturers and production facilities to produce their drugs.
Some third party manufacturing pharma companies specialize in small-quantity, small-molecule production; others may produce larger amounts. These companies process all the raw ingredients used in the manufacture of the finished product and ship the finished product to distributors. Third party manufacturing has several advantages that make it a popular choice for many biotechnology and pharmaceutical companies.
- A major benefit of this type of production is that it can quickly scale to meet the demands of new pharma products.
- Second, the model allows for lower start-up costs and fewer financial obligations to stockholders. Third party manufacturing companies that use the model are able to reduce dependence on traditional laboratories and hence their dependence on scientific research and development.
- It also allows the third party manufacturing company to establish a stronger presence in the international markets, ensuring that its products reach customers at places where there is absence of manufacturing facilities.
- The value of pharma contract manufacturing production has been well documented. Third-party manufacturers also have access to technology and equipment not within the reach of smaller companies.
- Through a licensing agreement, third-party manufacturers can secure patent protection for their product. Though these advantages have been well-documented, there are other factors to consider when looking at the benefits of third-party manufacturing.
- Third party manufacturing pharma companies have access to key scientists and staff that help develop new pharmaceuticals. Such companies also have the ability to optimize products for high-end results, which leads to increased profitability, evident by the great demand for such products.
- It is beneficial for a third party manufacturing pharma company to have on-site facilities that the end product can be manufactured in, packaged, labeled and distributed from. This greatly increases the time spent improving the quality of the product while reducing expenses and employee turnout. A company with this kind of capability sees great results in their demand for new, innovative products. Also, a company must have reliable payment solutions or gateways in order to collect money from customers. These capabilities will help maintain good relationships with customers.
A pharmaceutical company must determine its overall product cost and the relative profitability of its manufacturing process before using third-party manufacturer production services. However, many pharmaceutical companies have found that the savings they get through third-party manufacturing far outweighs the cost involved in establishing and maintaining the plants themselves. In addition to this savings, companies are able to control expenses better than they would if they had to maintain their own facilities. Finally, there are tax incentives available to many pharmaceutical companies through sales and use tax authorities that help offset the costs of third party production.
Summarizing Of Third Party Pharma Manufacturing Process:
We approximately take 35-40 days for manufacturing an entirely new product and 25-30 days for manufacturing the product which we have previously manufactured. Here are the detailed steps:
- Taking the formulation approval from the state or central drug authorities in case we don’t already have it.
- Designing the product and after design finalization, sending the packing material for printing.
- Procuring the raw material.
- After receiving the packing material and raw material, start the product manufacturing in the facility and parallelly test the product quality.
- Once the manufacturing is complete, monitor the product stability and how it behaves in adverse weather conditions.
- Ship the finished goods to the client along with necessary product quality documents.
Documents required for Third Party Pharma Manufacturing Services
We need the following documents from our potential client seeking to manufacture their products from us:
- Drug License
- GST Registration Certificate
- Marketing Company Logo
- Marketing Company Address Proof
- Agreement between the marketing and manufacturing company
Investment required for Third Party Pharma Manufacturing
If you want to start your third party pharma manufacturing business, Casca Remedies Pvt Ltd can help you with a lower investment of Rs 15,000 to Rs 20,000 whereas other pharmaceutical manufacturing companies generally ask for Rs 50,000 to Rs 60,000 investment.
Join hands with the Best Third Party Pharma Manufacturer in India
Casca Remedies is a WHO-GMP certified pharmaceutical manufacturing company which means our manufacturing facility strictly follows the Good Manufacturing Practices as laid down by the World Health Organization. We are also GLP certified third party pharma manufacturing company which means our testing laboratory follows the Good Laboratory Practices as laid down by the Indian Health authorities. Few of the advantages of Third Party Pharma Manufacturing are:
- International Quality Products: As our manufacturing facility is WHO-GMP certified, we can guarantee our customers of the best possible quality products which are comparable to the products manufactured by any big multinational company.
- Continuous & Periodic Testing: As per rules of the Drugs & Cosmetics Act, we test the products manufactured by us after every fixed time period to ensure their quality.
- Low Capital Investment: We, as a Third party manufacturing company, have kept our minimum order quantity very reasonable which facilitates our clients in launching new products in their company at a very low investment cost.
- Range of design and packaging options: Third Party Pharma Manufacturing Companies have in-house designing and packaging team whose sole responsibility is to assist the clients in choosing the best design and packaging option according to their need and budget.
Top Notch Quality in Pharma Manufacturing at Casca Remedies
While manufacturing the pharmaceutical products at Casca Remedies third party pharma manufacturing company, we ensure that we focus on the following:
- The raw materials are procured from the reputed vendors who are known for their quality.
- The machines used in our manufacturing process are made up of the non reacting material and are well calibrated to prevent any manufacturing defect in our products.
- Our staff is fully trained and well equipped to handle the complete manufacturing process without any problem.
Third Party Pharma Manufacturing FAQ’s
Third party pharma manufacturing is a process in which a marketing company outsources the manufacturing of its products to a pharmaceutical manufacturer referred to as third party manufacturer. The third party manufacturer produces the products according to the specifications provided by the company.
Casca Remedies is one of the best third party Pharma manufacturing companies in India. Their positive Customer Reviews are testimonial of their products quality and services. They are one of the first pharma manufacturing companies to enable technology everywhere starting from order procurement to order delivery.
Yes! We offer comprehensive brand-building solutions, including logo design, packaging design with a theme consistent with your company’s image and promotional material.
You should have Drug License and GST Number (optional) to start the third party pharma manufacturing business. Also, one more thing to keep in mind while starting the business is that your brand names should not be trademarked or registered by another firm.
We have state-of-the-art facilities in our laboratories and work closely with external providers for routine testing.Our labs are equipped with the latest technology to ensure our products meet the highest standards of quality.
Casca was founded in 1988 by a team of more than 34 years’ experience of people who consider themselves part of the Pharma industry.
Over 5000 product approvals from various regulatory agencies including FDA, WHO, and M, GMP.
We are a team of 400 people who work together to making best quality drug formulations with promotional products. We are experts in the making of drugs, and having expertise and knowledge in the Pharma sector.
Casca Remedies serves clients in more than 10 countries.
- Zero dead stock – The complete batch of a particular product is billed to the client, so no stock is left behind. This further eliminates the chances of goods being expired which is otherwise a common problem in pharma industry.
- Third party contract manufacturers get an immediate sale boost due to billing of an entire batch to the client. This results in an overall increase in revenue.
- A Pharmacist staff dedicated to the quality of each brand built
- Component pharmaceutical with a vast network of raw material vendors and distributors
- Fully trained and certified in PHARMACEUTICAL industry standards.
Our company is a manufacturer of health products. It makes sure that the company follows FDA (Food and Drug Administration) and WHO (World Health Organisation) guidelines. It is approved by M (Manufacturing), GMP (Good Manufacturing Practices) and ISO 9001:2015.
Our process, formula expertise, and quantity of raw materials ensures our brands comply with global standards.
Here are the documents you will need to start your own brand submit as a Third party manufacturing Firm Documents: Certificate of Incorporation, Pan, Trademark IP Certificates, MSME Adhaar, Billing Documents: Billing firm details, GST, Drug License.
Minimum Order Quantity (lots of little words, but still easy to understand) refers to the minimum number of products or units that a supplier is willing to produce and sell. MOQ can be set per order, per product, per size or by colour. For example, you are ordering from a company called Casca Remedies. They have an item with a MOQ requirement of 500 pieces. You need 200 pieces for your client but you would like to buy the remaining 300 piece lot for future use. The availability of this lot depends on their scheduling in manufacturing the product and their fulfilment schedule.
The lead time to receive the goods on Third Party Manufacturing is around 20-30 days.
Contract manufacturing, also known as private labeling, involves production of goods by firm, under the label or brand name of another firm. The most common difference in Third Party contract manufacturing to that of PCD Pharma Franchise is that in third party you are marketing your own brand whereas in PCD Pharma Franchise you are marketing other firm’s brand.
Third Party Manufacturing facilitates a bridge between manufacturers and the organization/ hospitals in need of a product with standard quality Manufacturing medicines and products on behalf of other parties.
We have more than 1500 companies is our firm manufacturing for as our valuable customers and they deal with us on a regular basis, making us a trusted name in the market.
If a pharmaceutical company either does not have their own manufacturing unit or their existing manufacturing facility is running out of capacity, then that company should go for Third-party manufacturing. By opting for third party manufacturing, the client prevents its revenue from taking a dip and it has a positive long-term impact on their sales.