As the name suggests its hiring the services of a manufacturer on contractual basis to produce pharmaceutics.
Pharma Contract Manufacturer or Third Party Pharma Contract Manufacturing means that there is a Manufacturing Unit that manufactures Pharma products in its unit for its own Marketing Company or other marketing companies.
There are GMP certified Manufacturers and there are WHO-GMP certified Manufacturers that deal in various categories of Medicines or Nutricians. Units are specifically approved for manufacturing of Formulations, food or Nutraceuticals, Ayurvedic and Herbal products and for generic and veterinary. All Pharma Manufacturer has to have a manufacturing license under which they are authorized to manufacture the products and the same has to be displayed on the boxes.
Third Party Pharma Contract Manufacturers are expected to provide finished products to the Marketing Companies for which they have taken the contract and approval, all manufacturing related activities are the responsibility of the Pharma Contract Manufacturer like ordering of Raw materials and excipients, using approved formula to manufacture the product, taking care of all the SOP of manufacturing, printing of packing material, packing the product and shipping them to the marketing company.
It’s the most technical and laborious aspect and it has to be handled in a very professional manner as the entire responsibility of quality of products lie with the Pharma Manufacturer. It’s the Pharma Manufacturer who gets penalized in case the samples are not as per standards.
There are marketing companies those also takes the premises of the manufacturer on loan License basis wherein they can write on their product manufactured and marketed by same company, now the responsibly of Quality is of the marketing company. There is a new trend which is catching up wherein a marketing company takes over the spare capacity of the manufacturer and under its own supervision manufactures the products for marketing company, here the first point of contract in case of quality issues is of the marketing company
This trend is catching up were in a marketing company takeover the spare capacity of the manufacturer by assuring him the business value. Marketing company provides RM and PM to the manufacturer and it’s the manufacturer man and machine produce the brands, here on the box it would be mentioned as manufactured by Name of manufacturer and marketed by Name of marketing company
Bigger organization Use Third Party Pharma Contract Manufacturing, Pharma Manufacturer for producing their products on conversion basis wherein they are responsible for RM and PM and also for the quality of products but on the box the name of Manufacturer is mentioned here the profit margin to manufacturer is less but the volume is large and he gets benefits of resource utilization and do its branding.