What are third party manufacturing pharma and contract manufacturing?

What are third party manufacturing pharma and contract manufacturing?
by new_pharma

There is not much difference between these two business models. Third-party manufacturing pharma means the pharma company gets medications produced with its own brand name from a manufacturing company. The medicines are produced of a decided quantity well-timed from that manufacturing company in India.

Usually, small to medium size companies choose 3rd party manufacturing services. In this type of manufacturing company there is not any type of condition or time compulsion.

In contract manufacturing, a pharma company in India gets medications manufactured at customized conditions.

For instance, they ask for the raw material, packaging material, and other product-related stuff. The manufacturer only assembles it.

Moreover, there is a legal deal between the manufacturer and company where the manufacturer commits to deliver the high quality product on a certain date. These types of manufacturing services are usually used by the big size and top pharma firms.

Advantages of selecting pharma third-party manufacturing in India

There are numerous advantages of choosing third party manufacturing pharma companies. Some of them are mentioned below:

• It provides opportunities for small companies. They can start their own company without investing any amount in the production infrastructure and facility.
• You do not need big land for establishing your business.
• You need less manpower as there will be no need for the manpower in the production area. This will save your lot of money.
• You will have the option to add a wide range of products under your brand name.

Advantages of selecting contract manufacturing companies

There are various factors that will help if you join contract manufacturing. Following are some of the advantages of investing in a contract manufacturing company:

• Contract manufacturing will help to reduce the cost of manufacturing. You will not need to produce the medications on your own.
• You will be able to give your attention to other areas of your company such as marketing and branding.
• Through contract manufacturing you will be able to see the technical approach that is not possible through your own manufacturing.
• You will require less resources and capital. If you are new to this business or own a small pharma company then you will not face the hurdles, which are usually faced due to the limited resources. Contract manufacturers have lots of resources they will help to add value to your product.

However, the decision of working with third party manufacturing companies or contract manufacturers depends upon your particular demands and needs.

Sometimes, it becomes very hard for the pharma companies to carry out the large proportion of activities internally. Thus they need association with contract or third party pharma manufacturing companies, which is a quite lucrative model. Association with these companies not only involves the product manufacturing or packaging but it includes the product testing, development, etc.

Things to be considered before choosing the contract and pharmaceutical third party manufacturing services:

A pharma company can take the help of PCD pharma company and various other services to grow faster. Like the PCD pharma franchise manufacturing services can also help the growth of business at a faster pace.

Make sure that the company with which you are going to make an agreement is good enough to maintain your business growth. It should be a full package of process development, production, testing registration, etc.

It should be a reputable and professional company that will be able to deliver your pharmaceuticals products of required quality at a decided time. Any unprofessional behavior by the manufacturing company can affect your business. Therefore, you should choose the manufacturing company after complete research.


Finally it depends upon the needs and demands of the company whether it needs contract manufacturing services or third party manufacturing pharma company. However, taking the help of these services can surely help the companies that are new to the pharma world and are willing to begin their own business on a small scale.

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