Advantages of Pharmaceutical Contract Manufacturing

Contract manufacturing organizations (CMO) provide various manufacturing services to the pharmaceutical and biotechnology industries from the stage of drug development to the full-scale production. These organizations can be hired for the manufacturing of small quantity of materials for R&D purposes, then larger amount for the clinical studies and finally for the full-scale production.
Contract manufacturing majorly includes the manufacturing of solid and liquid dosage forms as well as the injectable. However, the growing and upcoming usage of generic drugs and complex pharmaceutical products has seen many of these organizations produce active pharmaceutical ingredient (API) for their clients also. Some of the advantages of pharmaceutical contract manufacturing are discussed below:
1. Cost-effectiveness
Development of a new drug requires a huge initial investment and comprehensive research. After making a huge investment in R&D, more investment is required for setting up a manufacturing facility. A CMO, on the other hand, has an already established expertise and infrastructure to produce the drug at much cheaper rates. A company can save on labor costs such as wages, training and fringe benefits through contract manufacturing.
2. Advanced Skills
Due to the exponential rise in the pharmaceutical industry, use of advanced technologies and skills for manufacturing has become imperative. To bring a new drug to the market quickly at the lowest possible cost requires huge investments in the manufacturing process. Even the biggest pharmaceutical companies find it hard to have such expertise and resources.
CMOs have already established expertise and facilities to manufacture at full scale. They have strong ties with the raw material suppliers and have incorporated various efficiency methods to manufacture at the lowest possible operational cost.
3. Quality Assurance
CMOs have pre-established quality checks in place that have been refined over the years. They have been manufacturing in compliance with various standards used in different countries and have specific systems in place to control the quality of the end product. Pharmaceutical contract manufacturing helps the companies to make use of such quality control techniques to ensure compliance with different quality standards around the world.
4. Global Presence
Through CMOs, a pharmaceutical company can enter into new markets at minimal financial risks. There is no need for local investment in the areas of the capital, time and executive talent. In some cases, the CMO might also take care of marketing & sales for its clients. Entering into new markets through joint ventures and FDI exposes a company to financial and political risks. A CMO can help such companies in minimizing these kinds of risks.
To produce a drug, different kinds of resources are needed. A company may not find all of these resources in its own country and can outsource such manufacturing process to a country where these resources are readily available.
In conclusion, there's a great deal of importance put on pharmaceutical manufacturing, but without the expertise of pharmaceutical management and the proper distribution of the drugs, the industry would never be able to function as effectively as it does. Pharmaceutical management will ensure that there is a reliable availability of medicines and drugs within the public health services.

PHARMACEUTICAL INDUSTRY IN INDIA TODAY

The pharmaceutical industry in India ranks 3rd in the world in terms of volume and an impressive 14th in the world in terms of value. This makes it an important milestone in the pharmaceutical industry in the world. The information below highlights the important aspects of India’s pharmaceutical industry.
MARKET In 2015-2016 the industry recorded $50 billion with 47% of the money coming in from the retail sector. The market is highly fragmented with over550, 000 retail supply chains. The number has significantly increased with statistics showing retail suppliers have multiplied 4 fold in the past three decades. His however, does not apply in the prescriptions administered to consumers. In terms of global market the pharmaceutical industry in India holds about 1-2% share but it has been growing at a fast rate of 10% every year.
DISTRIBUTION
The industry has in the past few years experienced a major paradigm shift reason being the pharmaceutical companies in the past used to store their products in warehouses before distribution but the recent changes have seen to it that the Clearing and Forwarding Agents (CFAs) have taken charge of distribution. The CFAs are paid once or twice every year in respect to a certain percentage of the turnover as stipulated in the policy linking the CFAs and the pharmaceutical companies. After the CFAs the chain of distribution passes on to stockists who in turn avail the products to the retail pharmacies. The retail pharmacies eventually pass on the products to the consumers (patients).
POLICY
The pharma franchise in India has policies that are mostly issued by the government and they most apply throughout the country. Some of these policies are:
PRICE CONTROL
The order contains the list of the price controlled drugs, procedure for fixation of drug prices and penalties for contravention of the stipulated prices. The price control order is meant to ensure that there is abundant supply of drugs, the drugs are provided at a reasonable price, and quality of the drugs meet the required specifications, promote rational use of drugs and strengthen the indigenous capability of production of drugs.
INTELLECTUAL PROPERTY RIGHTS
This policy indicates the norm in respect to the following intellectual property rights; copyrights, trademarks, geographical indications, and protection of undisclosed information about the product.
PRODUCT DEVELOPMENTS
Indian pharmaceutical companies have started adapting to product development processes in the recent past. For quiet some years now these companies have made their way in the global market by identifying the generic competitors to patent drugs and following up with the necessary litigation to support the patent. Those who can afford it have set higher goals by planning to venture into molecular discoveries. The initial investment is high, but the hefty profit margins at the end of it all have lured multiple companies in the pharma franchise in India.
The pharmaceutical sector in India has been said to be uncertain and volatile, while in some cases it might be true the larger part of it is hogwash by global competitors. The sector has however risen up to the challenge and put measures such as price controls, compulsory licensing and changing the FDI policy.

PHARMA FRANCHISE COMPANIES

PHARMA FRANCHISE COMPANIES

When a company grants an individual or entity authorization to conduct commercial activities on its behalf, it is called franchising. Companies are willing to grant this authorization because it provides a
convenient, cheaper and cost-effective way of promoting, marketing and distributing their brand. Pharmaceutical companies are not exception.

Pharmaceutical companies often grant authorization to individuals, professionals, distributors or groups that allow them to control over their trademarks and products. The entity that is granted this
authorization is commonly referred to as a Pharma Franchise or a PCD (Propaganda cum Distribution Franchise).

There are some benefits of the Pharma Franchise industry, to both business owners and Pharmaceutical companies that have made it gain popularity over the years:

- Low Administrative Costs:
For a Pharma Franchise, limited staff is required. All the marketing and distribution can be handled by two or three individuals and can be done from one single location, even if the target market is the entire country.

- Low Investment Capital:
To start Pharma Franchise companies, you will be relying on your own work, your connections and relationships with doctors and professionals in the medical field, to establish your business. This means that you will be saving a substantial amount of capital for the initial startup.

- Large Profits:
Pharm Franchising results in big profits for both the Pharma Franchise and the Pharmaceutical Company itself. Because of the increased scale of marketing and distribution, not only does the Pharma Franchise business benefit from a handsome commission or income, the company enjoys an increase in revenue.

-Low Risk Factor:
Because establishing Pharma Franchise Companies is not capital intensive, there is minimal risk factor and is a great opportunity for an entrepreneur who wishes to start their own company but has little investment capital

-Monopoly Rights:
Being the authorized agent of the Pharmaceutical company, you can enjoy full monopoly over the brand and products in the area you are targeting. You get to decide how to market and distribute the medicines and pharmaceutical products at your discretion. Like every business, there are advantages and also shortcomings:

- Restriction on Suppliers:
Even if you as the Pharma Franchisee have connections to good and reliable suppliers, you are not at liberty to obtain supply from them and you are bound by the agreement between the Pharmaceutical company and its suppliers and vendors. This limits your flexibility a little.

- External Risks from other Franchisees:
Remember that you are not the only Pharma Franchisee in the area and that there is a whole network of Franchisees. Your reputation will be bound to this network such that if one Franchisee manages to
tarnish your name, not only will your reputation in the industry be affected but the brand of the Pharmaceutical company that you are representing will also be affected.

If you are thinking of staring your own Pharma Franchise, be sure to comply with all the requirements and remember that you are not only here to make money but you are also a Company’s brand ambassador. If you are a Pharmaceutical company looking for a cost effective, stress free and profitable way to market and distribute your merchandise, then a good Pharm Franchise
might just be the solution for you.

Glimpse of Pharma Industry Today

The pharma industry is one of the most sought after, and flourishing industries. It is the main reason for the economic wellbeing of a nation. One can say that the pharma industry as such is responsible for the economic development, as it contributes majorly towards the economy of a country. The reason being, nobody wants to compromise on good health. That is the main reason for both research and development of newer and better products for various kinds of diseases.

Challenges Facing the Pharma Industry
One of the many challenges faced by the pharma industry involves producing generic medicines. This is so that the medicines reach out to the needy as well as the poor at an affordable rate, and they can get cured. The drug price control is something that both domestic and global players are currently working on. The second important challenge facing the industry is the need for diversification. For a long time, the players of the pharma industry are routing the same possibilities, like low value generics and a great dependency on sales for higher development. The entry of foreign players in this industry has built an even more challenging atmosphere for the key players in the industry.
This is where a PCD Company would help the pharma industry. Associating with such companies, the pharma companies can outsource the marketing and branding activities, while concentrating on the core which in this case would be product research and development. Once the marketing resources are freed from this instance, they can help build better products, thus arriving at generics for the top line medicines too. Once the core is clear, and the marketing efficient, then the pharma industry can flourish and help the needy.

Why PCD Company?
It is a basic question that comes to everyone's mind when they hear about an association with PCD, why it is necessary? The answer is to understand the market needs globally, find ways to compete in the market, and finally provide the necessary insights. A PCD pharma Company will study the different generic needs, the drug control policies, and hoist its own trademark policy which will help market the drugs at reasonable rates to the doctors and patients. The need for such a company exists because of the diverse ways in which competition is increasing in this industry in particular.
Again, if you want to diversify your products, you need to know the exact needs of the market, which is possible only when you have someone to research the market for you. This is another reason why you need a PCD association.

Benefits of the Pharmaceuticals Industry in India

India remains a shining light in the international pharmaceuticals industry thanks to its low cost manufacturing, skilled workforce and infrastructure. These great attributes have catapulted India into one of the major players in the generics production segment. In addition, the country has a huge domestic market, which fuels its world dominance in the pharmaceuticals industry. All these factors have made India an appealing place for drug corporations looking to outsource their medicines. Here are a few benefits associated with the low pharmaceutical costs in India:

Large Market
The demand for western medicine has increased tremendously and this has encouraged partnerships between Indian production centers and Western companies. The western companies are trying to satisfy the increasing demand and India has emerged as a favorite location for such partnerships. The domestic industry in India is large and Indians can get important generic drugs at lower costs and this helps in bolstering the market.

Low Cost
In India there is a high number of well trained chemists as well as a huge market thanks to the dexterity of the country’s pharmaceutical industry. This is the reason why drugs are extraordinarily cheaper in India given that it is one of the leading manufacturers of generic drugs. This enables Indians to have access to sound health care and buy drugs from reliable chemists’ shops. The government of India has also taken various initiatives to ensure that its citizens get access to affordable medications by maintaining its own drug store chain. The government is further partnering with other small and medium drug manufacturers to help its supply chain maintain the momentum in producing high-quality and low-cost generic medicines.

On the manufacturing front, the cost of setting up a fully FDA-inspected plant in India is on average 50% less when compared to the developed countries. The production and operation costs have been found to be 40-70% lower when compared to the developed nations. Labor costs in India are on average 60-70% less than those in developed nations.

Intense Growth and Competition
Drug prices have continued to be low due to the high intense competition and growth of pharma manufacturing companies in India. This growth has been attributed to the enhanced medical infrastructure in the country, creation of new markets, increased chronic disease diagnosis and the launch of patented products. The country manages to manufacture low-cost drugs due to other favorable factors such as cheap labor, affordable equipment, competitive property rates and low-cost utilities.

Upgraded Manufacturing Plants
The pharmaceuticals industry in India has seen significant investments made by pharma manufacturing companies in India towards the upgrading of their plants to reach the international standards. The manufacturing plants in India have matched the standards set by the FDA according to a report released in the year 2015 by Deloitte. The FDA has so far approved about 600 facilities through its two local assessment offices.

Conclusion
The low cost pharmaceuticals industry in India is good news for both drug companies and the consumers. There will be more partnerships with the local drug manufacturers thereby enabling western companies to satisfy the increasing demand for western medicine and the prices will remain low. This industry will greatly benefit countries such as the United States and the rest of European countries due to these great partnerships.

All About Pharma Companies

In the pharmaceutical industry there is a category of companies that have tasked themselves to help other companies provide better services to clients. This category of companies is commonly referred to as contract manufacturing organizations, (CMOs). This name is brought about by their nature of business. They operate on contract basis to help other companies in the industry by providing services like manufacturing of drugs and performing trial on the drugs before release into the market. The companies also help to ensure stability of the drugs by carrying out comprehensive research on the drugs. When a client is selecting a service provider, they are advised to do a proper background check to ensure that the service provider is trustworthy.

Advantages of contract manufacturing organizations

Some of the advantages of having these companies in the industry include the following;

The CMO helps their clients to expand the already available technology. This is made easier by the CMO because the client does not need to make any additions or reductions to its technological staff and resources.

When a pharmaceutical company works with third party manufacturing pharma companies, the production cost is greatly reduced. This is because the amount of capital invested by the pharmaceutical company is greatly reduced. The CMO provide technical services helping the client to avoid responsibility for the hidden costs that might come with production.

The merge between the CMO and other companies in the pharmaceutical industry has helped in increase development. This is due to the third party pharma company taking charge of some aspects of the companies. This frees up the client’s resources, staff and time to development of better products and higher production rate.

Disadvantages of contract manufacturing organizations

Despite the many advantages that these companies come with, there are some downsides that come with these companies being in the industry. Some of the disadvantages of the contract manufacturing organizations include the following:-

 When a contract manufacturing organization merges up with a client in the industry, the client cannot control the projects the CMO is in charge of. Only the company has direct control of all the aspects involved in the project. Some of the aspects include the cost, time to be taken to complete the project and the quality of the products among others. This may be a negative effect in the client because of the uncertainty on the outcome of the project. Poor quality products and slow delivery may be disastrous to the client.

 Security of the client’s information. During the merge between the client and the CMO, there has to be communication on the client’s data and information to the company. Poor selection of a service provider might lead to leaking of very important information on the client.

Conclusion

Contract manufacturing organizations(CMO), are also referred to as contract development and manufacturing organizations, (CDMO). These companies are companies that work on contract basis for other companies in the pharmaceutical industry. Their function is to ensure that the clients can increase their production and expand without an impact on their staff and resources. Clients should however be careful on the selection of service providers to prevent leaking of important information from their companies.

India Takes its Place in Pharmaceuticals

India has, slowly but surely, been taking a stronger position in the global marketplace in almost every industry. It possesses the sheer manpower to make most forms of manufacture easy and a rapidly developing top quality education system which is encouraging innovation
and new idea implementation at massive rates. India has even gone from strength to strength in the entertainment sector. One of the largest growth industries in India is
pharmaceuticals, and it is taking its place as an industry leader in this field also.
In the Past Pharmaceuticals, like many fields, had previously been ruled by Europe and the United States, whose education systems, high budgets and corporate culture made their leaps and bounds ahead easier. By comparison India’s lack of patent protection laws from the year 1975 onwards has made it difficult for companies to take advantage of the high population and powerful potential for economic growth in India, as corporate culture is rife with attempts to copy other ideas for profit, which was not illegal on Indian soil. This
changed as US market pressures became prohibitive and several new cultures emerged to join the race. These include China, Russia, Mexico and of course, India.

Reasons for the Growth
Pharma manufacturing companies in India is going from strength to strength. India’s highly educated population and national work ethic means that its manufacturing power is beyond that of almost any country in the world. India creating patent protection laws have also ensured that many American and multinational companies now feeling they are safe to work in India and this has allowed massive injections of capital into the industry. There are now many major laboratories dedicated to innovation in major Indian cities. The mixture of Indian minds at the helm and Indian hands in the factories means sustained industrial growth that has made India the third biggest pharma industry in the world.
Current State of Affairs
The Indian pharma industry is powerful and likely to stay that way for the near future. With its world leading population investing its capital back into its people the Indian government is doing its best to prepare the country for the future. Pharma manufacturing companies in
India have reported consistently high profits in the last few years and the industry is becoming powerful enough to build on itself in the long term. While Indian companies have been slow to pick up on American tactics such as designing generic versions of existing products they seek to gain prominence through innovation and molecular discovery.
In the Future India is raising a generation of young innovators. As the Indian economy improves and the next generation of well educated, ambitious youth head out into the job market the ability to innovate will soon catch up with the ability to produce. It would not be surprising if the list of big pharmaceutical companies in the future will include several
Indian names.
The rest of the world is rapidly catching up to the West, and India is leading the charge. A highly educated population, government assistance and the willingness to connect and collaborate with the rest of the world allows leaps and bounds which will allow India to develop more advanced affordable medicines not just for itself but for the rest of the
world as well.

Reasons for The Growth of Pharma Franchise In India

With the increase in competition, it has really become tough for the new companies to enter into the current pharmaceutical manufacturing market. Even if they manage to enter into the business, most of the companies do not possess the required resources to sustain their business. The resources are not always the confined to the raw materials and technology. It also includes proper operational, managerial and marketing skills. Even if the company make use of resources and technology if they don't have the correct strategy and measures to implement they will not gain enough profit. The marketing and operational skills can be developed with time, but then the lack of resources can hurt your company very badly. So, if you have all the marketing and operational skills, but you do not posses enough resources, you can look out for a pharma franchise in India company offering to establish the setup branches.

In spite of opening up a new business, you can take the reforms of the Pharma companies, and you can avail their offers. These reputed pharma companies can offer all their resources and technology, but before making the deal they will put a check on lots of things like you should have some brief knowledge about your location and the also about the available resources and the norms imposed by the government of the region. If you qualify the complete process, then the parent companies will give you the authorization of a pharma franchise in India.

There are lots of reasons why the Pharma companies are looking to expand their market in the new areas because:
Growth of the business: Most of the companies are looking to expand their business boundaries across international borders. The process is quite complicating as the owners are required to go through the rules and regulations of the particular country and hence that's why they are looking to establish the franchise business.
Exploring new markets: Pharma franchise company is usually registered in search of new markets and delivering the solutions to it. It helps in improving the service and increases the brand name of the business.
Utilizing new resources to the best of its use: Some companies are also looking to establish their franchise business in a search for new resources. Utilization of new resources can help in producing better solutions.
Delivering new products: Growth of business completely depends on the changes made on the type of products manufactured. To avail, the change setting up of the pharma franchise company has been forced.

The advantages of the franchise industry include:
Quick startup: The franchise companies are only concerned in increasing the growth of their business and the brand name by delivering the required service. Hence most of the companies are focused on quick startup of their setup.
Quick business expansion: Opening up of a pharma franchise company in any location can be advantageous because at the initial stage the products manufactured are as per the local resources and with time the company can make use of their personal resources blended with the local supply that leads to the expansion of the business.

Best Pharma Franchise Company in India

In spite of the economic downturn, the growth of the franchising industry in India has maintained a positive slope. There are different reasons for the increase in the franchising industry. There are different sectors for which the foreign companies are looking to get a franchise in India as it has enhanced the limits of business opportunities.

There are different reasons for which different companies are looking for the best pharma franchise company in India like:
* Cheap resources: India is a land full of assets and one can extract utmost utilization of the resources to the maximum possible extent.
* Easy availability of resources: The abundance of the resources and its easy availability has attracted lots of companies to establish a full-fledged setup.
* Large market which helps in creating a great revenue for the company: Because of the large population, you will find enormous transactions of liquidity or capitals. You can make the best use of the available market to build up your supply chain.
* Use of latest technology: Even though the country is counted as one of the developing countries, it has got all the latest equipment and accessories for a sustained growth.
* Relaxation of policies: To get a pharma franchise in India, you don't have to go through all the conditions. Instead, you can look for the people who are ready to undertake your franchise and also take the responsibility of doing all the paper work.
* Huge consumer base: The presence of a large consumer base has always stabilized the demand and supply chain which soothes the production process.
*Foreign direct investment facility
The franchise of a business setup means utilization and exploitation of the ethereal assets of the parent company and making use of their resources and technology to provide the required service in any particular location. This is usually done to increase the returns on the investment and for the growth of the business. Most are the foreign pharmaceuticals companies are looking for Pharma franchise in India because of the above reasons.

The importance of quality franchise:
1.Only a quality franchise can provide the required assistance in setting up the pharma PCD company.
2.It can help in soothing the commercial and operational complexities in that particular region.
3.It assists in maintaining a healthy relationship between the Franchisee and the franchiser.

With time Pharma franchise in India has witnessed a vigorous growth. If, you are looking to own a franchise then opt for the Pharma PCD Companies because this sector has rapid development in the recent past. The first thing that you can do is to check out on the internet about the available pharmacy companies that are looking to give its franchise in India.

After you have made a list of the available companies, you have to select the companies that are looking to provide franchise in you locality. You can find the list of districts in their website and it is important that the pharma PCD company is looking for a franchise at your district. This is so because they are looking for the localities to soothe the future problems.

A Look At The Bright Future Of Pharma Manufacturing Sector In India

Most of us know that India has been doing really great in the pharma sector since last few years. The pharma sector of India is growing at an impressive rate. There are many reasons that have contributed to the success story of Indian pharmaceutical industry, such as low cost of production, skilled workforce, and robust R&D infrastructure. It is needless to mention that the generic medicines are dominating the global market, and it will continue to do so in the years to come.

After witnessing constant growth rate of the pharma manufacturing companies in India, the pharma companies from the western world are also coming down to India in order to set up their manufacturing units. As a matter of fact, the production cost of medicines in India is almost 33 percent lower when compared to that of the United States. So, it is the most obvious reason for the western pharma companies to invest in India.

Deeper look into the benefits enjoyed by the pharma sector of India

So, what is the reason behind the low cost of production associated with the Indian pharma companies? Well, the major reason that has kept the production cost really low is the cheap labor cost. When compared to the labor cost that exists in the Western nations, India’s pharma labor cost is around 55 percent cheaper. So, this huge difference certainly provides a lot of advantage to the pharma companies in India. Moreover, there is no shortage of both skilled and semi-skilled labors in India.

Apart from the labor cost, you need to focus on the aspect of setting up a manufacturing unit. If you set up a pharma manufacturing unit anywhere in the western nation, you will have to spend around 40 percent more! This very aspect explains why there are so many pharma manufacturing companies in India.

Another major benefit that the pharma sector of India enjoys is the aspect of cost efficiency. When your production cost is so low, you can certainly take the risk of trying out new things, which in turn can give rise to new opportunities. In an emerging market like India, there is no shortage of possibilities. Plus, the experienced and skilled workforce that the pharma companies in India have is a boon for this sector. The pharma companies in the western world and other parts of Asia do not possess the same level of technical competence and managerial skills the Indian pharma companies showcase.

As a matter of fact, India holds the second position in the list of largest number of pharma manufacturing plants approved by USFDA (not including the United States). Some people think that the quality of generic medicines produced by the pharma companies in India is not up to the standard. Well, it is absolutely incorrect, because these pharma companies are USFDA certified.

With the passage of time, more players are emerging into the pharma market of India. The rising per capita sales associated with the pharma manufacturing companies in India is adding more fuel to the growth rate of this industry. In 2016, the per capita sales of Indian pharma companies experienced a growth rate of 17.6 percent.

No doubt, it is proving to be highly advantageous for the people of India as well, because now they are able to purchase drugs at much cheaper rates. Basic medical facilities are now within the reach of common people, which in turn has improved the health standard as well. So, if you are planning to invest your money then pharma sector can be an excellent option, particularly the PCD (Propaganda Cum Distribution) model.