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.