3rd Party Pharma Manufacturing in India – An in-house production facility is costly, time-consuming and complex to meet all the regulatory requirements that would otherwise be unmanageable for most small- to mid-sized pharma companies. Therefore, many brands today rely on 3rd party pharma manufacturing in India to obtain high-quality medicines without having any machine in their hands. This blog explores what the model is, why it’s become an option for more companies, and the process of ordering and delivering it.
What Does 3rd Party Pharma Manufacturing Mean?
The 3rd party manufacturing is a straightforward contract, in which the company that owns the formula and the brand name rents the manufacturing unit to create the medicine. The manufacturer is responsible for sourcing, production, quality testing and packaging of the raw materials, the brand owner is responsible for marketing and sales.
The only difference between contract manufacturing is that the brand doesn’t have to invest anything in the machinery, employees or manufacturing license for 3rd party manufacturing.
Why Companies Choose 3rd Party Pharma Manufacturing in India?
The advantages of a skilled workforce, a well-established regulatory framework and the cost effectiveness to most of the countries in the west, has made the Indian market a preferred destination for this model. Why brands are attracted to it:
- Lower capital investment
• No investment in land/building or production equipment is required
• Working capital is used for marketing, distribution and product development instead
• Decreases the economic risk associated with the entry to the pharma business - Faster market entry
• Manufacturing units are already in operation and certified
• The time required to take products from formulation to the finished product in weeks
• Brands can conduct tests of new products without the long production lead time - Access to expertise and infrastructure
• Partner units have ISO and GMP Certification, and trained quality control teams
• People who do this day in and day out are responsible for formulation and packaging
• Brands are aided by existing value chains for raw herbs and active ingredients
How the 3rd Party Manufacturing Process Works?
Having an understanding of the process enables a brand to select the right partner and stay clear of delays. These are the general steps it proceeds through:
- Formula and documentation — The brand provides its formula, or the manufacturer assists in creating a formula, and required regulatory documentation.
- Sample approval — A trial batch is made and tested to determine acceptability in terms of quality, texture, and stability before entering into bulk production.
- Raw material sourcing — Manufacturing company gets herbs, active ingredients and packaging material from reliable suppliers.
- Bulk production — Products are produced according to the GMP standards, where quality checks are made at every stage.
- Packaging and Labelling — The finished product is packaged and labelled under the brand’s name, label and design.
- Dispatch — Products are sent to the brand’s warehouse/distribution system and sold.
A reliable manufacturing partner is essential to ensure this timeline remains consistent and to ensure the brand is well informed about the process at each stage; as this directly impacts a brand’s ability to meet orders and expand its network of franchise locations.
Conclusion
3rd party pharma manufacturing in India has emerged as a realistic option for the brands who want to launch and expand without the liability of having their manufacturing unit. It reduces costs, accelerates market entry and provides access to trusted infrastructure and know-how that would otherwise take many years to develop. Companies such as Lezaa Ayurveda operate within this paradigm in order to assist partners to launch quality herbal formulations with a strong manufacturing support.
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Frequently Asked Questions (FAQ’s)
Q1. How is it different from contract manufacturing?
Ans. 3rd party manufacturing allows the brand to avoid a drug manufacturing license.
Q2. How long does the manufacturing process usually take?
Ans. There are varying timelines, but samples may take a few weeks before they are approved for dispatch.
Q3. Is quality testing included in the process?
Ans. Yes, there are reputed manufacturers that have quality checks throughout the manufacturing process.
Q4. What happens if a product fails quality testing?
Ans. The batch is scrapped and the same batch is remade before it reaches the brand.