What is third party manufacturing/ contract manufacturing in pharmaceutical sector? Why is this concept becoming more and more popular these days?
When you enter into the pharmaceutical world, you might come across the term ‘Third Party Manufacturing’, a number of times. It has become a common and trending phenomenon nowadays.It is referred to out sourcing of products or to get manufactured from other’s manufacturing unit by own brand names.Both parties enter into any agreement covering the licensing, product approval, registration, purchase, sale, marketing or distribution of any of the categories of Product. Similarly in the pharmaceutical world,Pharma companies outsource their activities, to other organizations, say manufacturing of medicines, or marketing etc.
How to find unique name for your Pharma Brands?
Brand names are the most important attribute of a product after its quality and packing. It is being perceived that branding plays a significant role in the sale of pharmaceutical products. It helps consumers to easily identify any product with its brand name. It also helps pharmaceutical companies in communicating why their brand is superior then the competing brands. Such brand names never escape from the memory of customers. Few reputed pharma brands are : Viagra, Mucorex, Luvent LC, Aciraz etc.
Important aspect of Third Party Manufacturing: Trademark Registration
Indian Pharmaceutical sector is the fastest growing sector in the country. It has been witnessing tremendous growth rate in recent time. Pharma Companies are facing stiff competition and their cost of marketing and branding is even increasing with each passing day. Therefore, due to the expansion of the market and huge investments involved, the trademark registration for any Pharma associate, who is planning to incorporate his own third party manufacturing company have become necessary. Trademark registration helps them to secure their brand identity from getting replicated by fraudulent pharma dealers.
Loan License Concept
Historically, many pharmaceutical companies have turned to the contract manufacturers for achieving more efficiency in cost, capacity and time-to-market, or to acquire specific expertise not accessible in-house. In today’s scenario of advancements, the principal to principal or loan license agreements are very much admired in India. In this type of contact, the marketing company who is not having its own premises for the manufacturing, gets the facilities of manufacturing its products at other’s premises or plant and then market it under its own name. It’s an opportunity for both the marketing company and the manufacturer itself. Companies not having enough space for the installation of manufacturing premises, gets benefited by saving their cost of installation and leveraging the existing manufacturing capabilities for more production.
Tips to consider while choosing Third Party Manufacturer for your products
Currently the phenomena of Contract Manufacturing/Third Party Manufacturing are growing too rapidly. We can say that this trend is fundamentally reshaping the Pharmaceutical industry in India. Third Party Manufacturing is essentially the practice of establishing a manufacturing agreement between two companies. The third party manufacturer, specializes in manufacturing operations produces products on behalf of the marketing company. The marketing company can place orders in batches of all sizes and specifications, effectively delegating the manufacturing functions.
How to start Pharma Marketing Company through Third Party Manufacturing Route
With the increase in the awareness and demand of medicines all over, the pharmaceutical industry has seen a robust growth in the past few years, making its importance as a global sector a very inarguable subject. The trending concepts in the pharmaceutical industry like the Pharma Franchise & Third Party Manufacturing are luring new and rising entrepreneurs into the pharmaceutical world. Third Party Manufacturing concept is gaining popularity in pharmaceutical segment rapidly in recent years. Third party manufacturing allows pharma professionals to get manufactured products from others manufacturing units with their own brand names. Currently it has become a common and trending phenomenon.