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Contract Manufacturing Company and Its Role


Contract manufacturing company plays a significant role in reducing costs and drug development risk thus adding value in product development SAVA Research. – PowerPoint PPT presentation

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Title: Contract Manufacturing Company and Its Role

Contract manufacturing company and its role

  • Contract manufacturing company establishes a
    mutual agreement between two companies where one
    company produces materials or raw materials for
    the other company.
  • The other company then uses that material for the
    manufacture of finished products. The former
    company that manufacturers raw materials also
    handles the shipping and dispatch of material to
    the client to ensure that things are carried out
    in a proper manner.

  • The working model of a contract manufacturing
    company will suit to any business type as it
    essentially involves outsourcing the production
    to the other company.

  • The growing demand of outsourcing
  • Coming into the picture of contract
    manufacturing, global pharmaceutical industry is
    bringing new trends and thus the pharma world is
    also experiencing a drastic and dynamic change.
    With the view to cut cost of drugs all pharma
    companies are reducing their cost, manufacturing
    capabilities, RD cost, internal capabilities and
    are rather focusing on outsourcing.
  • These drug companies are now relying more and
    more on those who provide outsourcing services
    with the view to fulfill their needs and cut
    costs as well. This trend is also witnessed by
    the pharmaceutical contract manufacturers in
    India in recent times.

  • Restrictions faced by some companies due to
    global financial crises
  • This outsourcing demand exists mainly in the RD
    focused biotech industry. There are many VC
    investors whose global funding models have
    changed mainly due to a funding shortage. There
    are various biotech companies that have reduced
    their programs and some have even gone to the
    extent of closing the entire operation. Due to
    worldwide financial crises some small RD
    companies have less demand for outsourcing.

  • But irrespective of this fact there are certain
    benefits of pharma contract manufacturing
    companies that cannot be ignored
  • It drastically reduces cost
  • It brings down drug development risks
  • Manufacturing facilities are enhanced thus
    providing an added advantage in product
    development and has good chances to get various

  • These are few but very strong reasons as to why
    some solid/liquid/oral formulation manufacturer
    in India has recognized as well as adapted to
    contract manufacturing.
  • Pharmaceutical contract manufacturing in India
    will witness a greater boom in recent years owing
    to the expertise available in this nation and
    comparatively lower cost.

Note The information mentioned in this
presentation is solely the opinion of the author
and is published for informational purposes only
Sava Research or its affiliates bear no
responsibility on the authenticity of the
information published herein.
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