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.
Now we will discuss the procedures or steps you should follow to start your own Pharma marketing company with third party manufacturing concept.
- Wholesale drug license
For third party manufacturing of your products, you need wholesale drug license.
- GST Number
As we all are known, w.e.f. 1st July 2017, India comes under one tax regime- GST. To get your products manufactured through third party, you should have GST number.
- Registration of Company
It is very important to register your company as per the norms and guidelines under the company act. You have following options to register your company:
the private limited company,
a limited liability partnership (LLP) company,
a public limited company,
a one person company (OPC).
The majority of pharmaceutical companies in India fall under the above categories of companies.
- Affidavit for Non-resemblance of your brands.
If you are going to get manufactured products with your brand names through third party route, you have to send affidavit for Non-resemblance of your brands to your manufacturer. This is generally for the purpose to specify that the specific brand name of product belongs to you only and you will be totally responsible for brand name or trade mark conflict in future.
Third Party Manufacturing Procedure
The third party manufacturing procedure consists of multiple steps:
1.Selection of Product Portfolio
Make a list of molecules & compositions you wish to get manufactured by a third-party manufacturer. While selecting the molecules, you should keep in mind some key points such as market demand, product cost, manufacturing facilities etc.
- Brand Name Registration
After selecting molecules, you should select your brand names and also get them registered. Do intensive research on competitive brand names and also international brand names for your desired molecules. Your brand names should be unique, catchy and self explanatory. It is strongly recommended to get these brand names registered so as to avoid brand resemblance consequences in future.
- Selecting Third Party manufacturer and getting price quotation
There is no single norm or strategy for choosing the right third party manufacturing company. You should do a lot of research and up-front work to make a quality decision but be assured that all this will pay for you in the end. The best third party manufacturing companies are those who not just produce your products, they recognize and treat your products as if they were their own. They are thorough in their operations and diligent about providing qualitative and cost effective solutions.
Send all short listed third part manufacturers request for price quotations for your required compositions by mail and ask for detailed price quotations having proper cost sheet, the minimum batch size, delivery schedule, product approval charges and packing material inventory charges etc. You can get best deal after some negotiation.
- Finalization of Purchase orders and business terms
Send your final purchase orders to your third party manufacturer having order quantities, final rates, payment terms and delivery dates. You should ask for written confirmation for your purchase orders.
- Submission of documents
In this step, all the required documents should be submitted to Third Party Manufacturer such Wholesale Drug License, GST Number, Company registration, Affidavit for Non-resemblance of brands.
- Packing Material development
You have two options- You can provide packing material yourself to your manufacturer or you can let manufacturer to procure and print packing material for yourself. In any case, you should be a part of finalization of artwork of your products. Check spellings of brand names, compositions, marketed by address carefully. Try to develop unique and attractive designs for your products as all these minute attentions will create brand identity for your products in the market.
- Product delivery
Once your order has been manufactured, you will have to deposit the final amount. Your products will be transported after the payment as per your contract terms and conditions.
We hope that this write up can be helpful for all those pharma marketing professionals who want to start marketing with their own brand names. Getting your products manufactured through third party route is easy but this doesn’t mean once you’ve contracted a third party manufacturer, you can sit back and relax, though. Proper communication with manufacturing organization and product management is still needed but selecting the right manufacturer can be very fruitful for you.