Irrespective of nations, the pharmaceutical industry is responsible for researching, developing and manufacturing various kinds of medical products, whether medicines or instruments; not just to relieve the world of certain medical conditions but also to bring a better environment for all living beings.
Just like any other sector, even the pharmaceutical sector has multiple types of systems of operations. The three most major and common types of pharmaceutical manufacturing systems are Third-party manufacturing, contract manufacturing and P2P or Loan Licensing System. There is one more system closely related to these three, i,e Propaganda Cum Distribution or PCD Pharma system. Let us consider these systems individually.
(A) Third-party Pharma Manufacturing
What is Third-party manufacturing?
A third party pharma manufacturing happens when a pharma company outsources the job of manufacturing its products to another manufacturing company instead of doing it in its own premises. In such a case, the former company is the product owning marketing firm and the products are sold on its brand name although the manufacturing is done by a third-party entity.
The marketing firm orders a certain quantity of products to be made by a third-party manufacturing company, with the former’s brand name. On the other hand the manufacturing company delivers the manufacturing with the resources available at its own manufacturing unit, concerning raw materials, packaging, etc. In simlpe words, all the resources required for manufacturing are arranged by the manufacturing company, while the end product is sold at the brand name of the marketing firm.
What are the reasons behind choosing third-party manufacturing?
Such an incident might occur due to multiple reasons, like the marketing firm does not have the permission or lisence of manufacturing a specific product or it is running out of time to meet a deadline of a bulk order.
Did you know?
Weefsel Pharma happens to be one of the most well known third party pharma manufacturer in India, and also worldwide. Click here to know more.
(B) Contract Pharma Manufacturing
What is Contract pharma manufacturing?
A contract pharma manufacturing is nothing but a third-party manufacturing, but with a difference. The difference is that in this case is that all the resources are arranged and provided by the company that is outsourcing the task of manufacturing the products to another pharma manufacturing company.
A contract is made between the two concerned pharmaceutical companies wherein one outsources the job of manufacturing its products to another pharma manufacturing unit, while adhering to the terms and conditions put forward by the former one or the marketing company.
What are the reasons behind choosing Contract pharma manufacturing?
Third-party manufacturing lacks certain compulsions in the product delivery, whereas contract manufacturing does come with compulsions, as mentioned in the terms and conditions of the contract. Also, the contract manufacturers are significantly more resourceful than small or medium scale pharma companies, and thus prove to be helpful in manufacturing tasks for the latter one.
Did you know?
Weefsel Pharma is one of the forerunners when it comes to Contract pharma manufacturing in India as well as globally. Click here for further details.
(C) P2P Pharma Manufacturing or Loan Licensing System
P2P or product to product, is actually a kind of loan licensing system; which is somewhat like doing manufacturing without really setting up a manufacturing unit of ones own. In this process of pharma manufacturing a pharmaceutical company or the pharma marketing company manufactures products at the manufacturing unit of some other pharma company and avails all its manufacturing benefits, staff and facilities.
A separate license is issued to the pharmaceutical marketing company in order to manufacture medicines and access all the benefits of the manufacturing unit. This unique system is known as loan licensing and the license issued to the marketing company is known as the loan license.
What are the reasons behind choosing P2P Pharma Manufacturing?
Such manufacturing activities is common with pharma companies who lack sufficient manufacturing space or exact required set up; or even in cases when pharmaceutical marketing companies want to manufacture their own medicines, but do not want to set-up their own pharma manufacturing units. Hence they tie up with some other pharma manufacturing company who has enough space and licensed manufacturing unit for the specific product manufacturing.
Did you know?
Weefsel Pharma has gained much reputation as a P2P pharma manufacturing service provider, in the global market. Click here to get details.
There is one more system that closely acts with the above three pharma manufacturing systems, i,e the PCD Pharma system. Let us have a brief idea about this as well.
(D) PCD Pharma System
What is PCD in pharma?
PCD stands for Propaganda Cum Distribution. It is completely associated with pharmaceutical marketing. Propaganda Cum Distribution focuses on the right to market and distribute in the pharma industry.
How does PCD work?
The way a PCD pharma works, is much similar to that of a pharma franchise; considering the fact that just the size of the business differs in both the cases.
A pharma franchise involves dealing with larger units, and thus calls for much significant investments, large market targets and covers a large area in its operations. While on the other hand, a PCD Pharma works on small units, needs much lesser capital and covers a relatively smaller area of operations.
Did you know?
Weefsel Pharma is a globally well known name when its comes to offering PCD Pharma service. Click here to know further.