Pharma third party manufacturing is called contract manufacturing. This means that companies in the pharmaceutical industry delegate their product production to firms that specialize in this area. Through such a model, pharma can concentrate on its core functions of R&D, marketing and distribution while relying on regulatory compliance capabilities, expertise and infrastructure of 3rd party manufacturers.
In such arrangements, the third party manufacturer makes pharmaceutical products based on the specifications provided by the hiring company. This can include formulation, production, packaging and labelling of various products like tablets, capsules, syrups, injections or ointments.
How to Start Pharma Third Party Manufacturing in India?
A few steps are involved in starting your Third party pharma manufacturing. Here is a well-detailed guide to help you through the process;
1. Study the Market
- Demand Identification: Comprehend different pharmaceutical products needed in the market.
- Analyses of Competitors: What do your competitors sell and at what prices?
- Regulation: Research on regulatory frameworks of target markets.
2. Plan
- Niche Definition: Decide if you will focus on making generic drugs, branded ones, OTC medicines etcetera.
- Financial Planning: Start-up cost estimation, running costs projection and revenue forecast.
- Marketing Tactics: You need to make a plan about how you will sell your product to customers who may be interested.
3. Legal Formalities
- Business Set Up: Complete all paperwork required by the laws of the country and register the company (e.g., LLC, Pvt. Ltd., etc).
- License and Permits Some of these licenses include a drug License from the State Drug Control Department
- Goods and Services Tax (GST) registration,
- Manufacturing licensees (in case you want to manufacture those drugs).
4. Finding a Third Party Manufacturer
- Criteria for Shortlisting Manufacturers: Look for third-party manufacturers who are highly reputed and have the necessary certifications (for example, GMP, WHO-GMP).
- Quality Assurance: See to it that high quality standards are maintained by the manufacturer.
- Capacity and Capability: Ensure that the manufacturer can manage your order volume and has what it takes to make your specific formulations.
5. Agreement with Manufacturer
- Negotiate Terms: Talk about aspects like pricing, minimum order quantities, payment terms, delivery schedules etc.
- Contract: Therefore create an agreement that is detailed but covers aspects of confidentiality, intellectual property rights and quality assurance.
6. Product Development
- Formulation: Finalize product formulation with collaboration from the manufacturer.
- Packaging Design: Design regulatory-compliant packaging and customers’ interest.
- Branding: Come up with a logo and brand name.
7. Regulatory Approval
- Product Registration: Register products with the relevant drug control authority.
- Compliance: All labelling must be made by regulations.
8. Manufacturing Process
- Trial Production: Undertake a trial production run to ensure quality and consistency.
- Quality Testing: The trial batch should undergo thorough quality testing.
- Full-Scale Production: Once satisfied with the trial batch, proceed with full-scale production.
9 . Marketing and Distribution
- Distribution Network: Create a distributor & retailer network.
- Marketing Strategy: Apply your marketing strategy through various means.
- Sales Team: Employ and orientate sales personnel to market your products.
10. Monitoring and Scaling
- Quality Control: Monitor product quality consistently.
- Customer Feedback: Gather customer’s comments for use in action-taking.
- Scale Up: Increase the scope of your operations slowly as the need grows.
The above are the steps to follow when one is planning to establish a third party manufacturing business. They are of utmost significance for the quality control and reliable manufacturers working for long-term relationships.