The demand for contract manufacturing, especially for small and big molecule drugs, active pharmaceutical products, formulation drugs etc have only seen a rise across the country. Various factors have contributed to the increasing growth of the contract manufacturing sector – a rate of growth that’s even much more greater than of pharmaceutical/bio-pharmaceutical industry’s gigantic markets.

We’ll try to touch upon some of the reasons as to why we are seeing the demands intensifying in the below pointers.

Rising incomes of people around the developing world – which is also known as the emerging markets due to its potential for exponential growth – have led to an ever-increasing consumption of medicines.

While the emerging markets grow on one hand, we’re seeing an increase in the ageing population of the western, developed world – also known as mature markets, no pun intended.

Contract manufacturing in India is witnessing an increasing rate of approval for WHO GMP and ISO certifications which rides on the back of a more dynamic lineup of novel drug candidates.

These WHO GMP certified formulations companies offer world-class facilities for contract manufacturing; they come equipped with cutting edge machinery; segregation of critical processing activities with virtually zero chances of cross-contamination

The intensifying competition for novel generic medicines have pharmaceutical companies scurrying to find a state of the art yet cost-efficient contract manufacturers that can help them obtain novel, proprietary products which can ultimately let them create a niche for themselves in the cut-throat Indian pharmaceutical market.

These pharmaceutical contract manufacturing companies house gigantic air-conditioned storage areas; and in-house product development capabilities among other things.

One of the major reasons for the increasing requirement has to do with the entry of several small and big pharmaceutical and health care startups that have ventured into the market virtually, assisted through modern technology, without any capacity to manufacture curatives on their own.

The question that raises its head after deliberating over the above points would be, how far and for how long can such growth sustain itself?

We are seeing a lot of mergers and acquisition between pharmaceutical sponsors and the contract service providers. But just not that, what we are also witnessing is a lot of integration with, and investment in, pharmaceutical contract manufacturing companies, resulting in a stronger future for both these sectors. One way contract manufacturers can enhance their growth and want among sponsors is by offering unique value-added services that the sponsors themselves cannot obtain on their own due to various reasons.

Some of these value-added services could be in the shape of the following activities.

  • Packaging: This includes sourcing of raw packaging material, to creating ideal, innovative yet safe and standardized packaging of various medicines that they manufacture.
  • Delivering: Delivering the product directly to the trader through their own logistical facilities in a safe and timely manner can save the pharmaceutical company a lot of hassle and time.
  • Research & Development: By actively researching for novel curatives, and having an expert panel with a finger on the pulse of latest pharmaceutical innovations, contract manufacturers can guide their sponsors in the right direction and acquire the funding that can lead to improved formulations for the betterment of whole humankind.

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