Pharma Industry decades earlier was confined to a few Multinational companies and they were the ones who were calling all the shots, then came some Indian Pharma companies like Cipla who started giving competition to these multinational companies. Govt. Introduces a policy were in we were obliged to follow only process patent not product patent, meaning that we cannot use the same process to make the drug but we can use a different method to make the product as we do not oblige product patent, this change in policy opened the floodgates of Pharma Industry, many pharma companies using Backward integration started introducing molecules at cheaper prices in comparison to multinationals giving the same quality, many pharma companies introduce same molecules that were available with other companies as there were no restrictions for doing the same.
Then came another policy decision wherein industry opened up loan license, were in the companies were allowed to manufacture their brands from outside their own manufacturing units and it was not necessary to have own manufacturing unit for the same. This further expanded the industry as now many new companies opened up as they were not to invest heavily on manufacturing units and they were allowed to use other’s manufacturing units to manufacture their brands and they were only to focus on marketing, this gave a lot of relief to the companies and taking the benefit of this policy many entered the market and the industry grew dramatically.
Pharma Contract Manufacturing is a technical process and if we are going in for Third party pharma Contract Manufacturing then we need to take care of the following:
1. The manufacturing unit should be at least GMP certified and if possible WHO certified or compiled
2. The unit should have wide approvals on the segments which you wish to deal in.
3. The unit should be able to give you COA report, it is advisable to get a few brands randomly checked from outside labs.
4. A unit should have the latest machinery and multiple dyes sets to meet your requirements.
5. The unit should have an in-house packing and printing unit or at least one who is completely dedicated to the plant.
6. A manufacturer should have a policy of providing World class quality and Packing.
7. A manufacturer should be able to deliver the products on time as this is the biggest pain area of the marketing companies as they don’t get the product in time and shortages ruin their businesses.
8. A manufacturer should not increase the price at will, but it should be in accordance with the increase in the prices of RAW material, which as of today is very fluctuating.
