How has Third Party Manufacturing of Pharma Products in India evolved over the Years

Third Party mfg. of Pharmaceutical Products, also known as Pharma Contract Manufacturing, involves the development of pharma products by a third party to be sold under the brand of another company. Instead of performing all the functions including production of pharma drugs itself, many pharma companies have adopted the model of outsourcing manufacturing to third party service providers in order to get quality products.

Large-scale production capacity for certain drugs is incomprehensible for some pharma companies, therefore, they enter into an agreement with a third party pharma manufacturer. As part of third party mfg. of pharmaceutical products , a third party manufacturer utilizes resources such as their own in-house expertise, client’s or own product specifications to give high-quality pharma products that are available at affordable prices.

The third party mfg. of pharmaceutical products has become an industry norm not just within India but on a global scale. For many pharma manufacturers, raw material procurement and shipping on behalf of the client comes under the scope of third party manufacturing of pharma products. Subsequently, any client of such third party manufacturers does not have to brood over leasing manufacturing facilities, procure raw material or hiring manpower.

Reasons behind the success of Third Party Mfg. of Pharmaceutical Products

The third party manufacturing of pharma products, whether formulated or molecule drugs, have seen a profit surge in recent years including the year 2017. In fact, the rate at which third party manufacturing of pharma products has grown is higher than the growth rate of the entire pharmaceutical industry. The growth is attributed to several reasons such as:

• An increase in the consumption of medicines in India which is partly due to an increased spending power and in part due to an aging population;
• Lower pharma production costs in India compared to other economies including the US and UK;
• Breakthrough innovation giving way to the emergence of new molecules every now and then;
• An increase in drug approval rate by DCGI pushing more products in the market at a faster rate;
• The emergence of many small start-up pharma companies with no relevant expertise in pharma manufacturing;
• An increasing competition in the generics market that is pushing the need for cost-effective and breakthrough technologies;
• Specialized skill set required to achieve development of complex drug molecules that are

availed only through third party manufacturing of pharma products.

Do you have questions regarding third party mfg. of pharmaceutical products? If yes, call our customer support at +919888885364.

If you are looking for pharma franchise company in India then Pharma Franchisee India is the right solution of your search.