The pharmaceutical industry in India has grown by leaps and bounds since its origin in the 19th century. It is also considered as one of the most highly organised business sectors. Pharmaceutical Contract Manufacturing in India has become an important part of the pharma industry in the past 20. Read on to find more about pharmaceutical contract manufacturing in India:

What is pharmaceutical contract manufacturing?

Pharmaceutical Contract Manufacturing in simple terms is the development of drugs by a pharma manufacturer for another pharma company. The drugs produced are under the label of the latter company. Pharmaceutical drugs like amoxicillin and potassium are used for treatment of bacterial infections. The pharma manufacturers who do not have the capabilities and equipment required to produce certain drugs benefit with this concept and it is similar to outsourcing, in simpler terms. The paucity of time also is the reason behind firms getting manufacturing services from contract manufacturing firms.

Pharmaceutical Contract Manufacturing at a glance:

  • The strategies of outsourcing other firms to develop new products for concentrating on the core competencies of the firm is the possible future that will define the future of the pharmaceutical Indian organisations.
  • Mass production of particular drugs and medicines requires greater know-how in terms of capital and equipment. Small scale companies rely on pharma contract manufacturing in such cases.
  • One pharma manufacturers in India produces drugs for another company based on the specifications and features as prescribed by the parent firm.
  • The pharma manufacturing availing services need not have their own manufacturing facilities, intelligence or even raw materials of their own.

Benefits of Pharma Contract Manufacturing in India:

  • Efficiency: The contract manufacturing companies in India providing their services to the other firms ensure efficiency and optimum usage of resources. Be it manpower or the strategic intelligence or the working resources required in the production cycle. Thus ensuring quality products.

  • No requirement of resources and maintenance: The pharma manufacturing companies that avail services of contract manufacturing firms do not require to own maintenance facilities of their own.

  • Quality checks – Bigger pharma manufacturing companies have greater and better layers of quality control in their production cycle. Outsourcing production to bigger companies ensures better compliance of global quality standards.

  • Scalability – Contract manufacturing companies have better resources than any middle or small scale company has. Scaling production is an easy task for them in event of fluctuation in demand and supply.

Cons of Pharmaceutical Contract Manufacturing In India

  • Production time – Research has found that the actual production time is much higher than the estimated production time thus increasing costs for the firm that availed outsourcing.

  • Lesser control of the parent company – The parent company has to relinquish control over the production process once they outsource production to the other firm.

  • No direct communication – There is no direct communication between the people working on the medicine and the parent company since premises of both are different.

  • Leakage of confidential information – There is a possibility of the confidential data of the parent company getting leaked in the process. There is also the risk of misuse or theft of intellectual property that may be exchanged with the other company.

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