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The pharmaceutical field is very diverse, so are the opportunities to start your own business in Pharmaceuticals.
Primarily Pharmaceutical Business is divided broadly into 2 Categories
- Core Pharmaceuticals (Drugs and Intermediates)
- Surgicals
Core Pharmaceutical Business Models are Listed below
1. API or Bulk Manufacturing Companies
They are involved in the production of raw materials meant for usage in Pharmaceutical productions. Which includes a large variety of Products
- Active Pharmaceutical Ingredient or API.
- Intermediates
- Excipients.
- Dyes and Colouring Agents
2. Formulation Development
These companies are involved in products that are marketed or sold for usage in consumers/Patients.
Many of the companies are involved in Formulation development also called F&D, Wherein these companies do research on developing various formulations/dosage forms to deliver the drug, and meet Indication expansion or widen the usage and user base. eg Syrup Suspension, Topical, Tablet, Injection, Spray, etc of the same product (Eg- Diclofenac)
3. Contract Manufacturing
These companies are primarily involved in the manufacturing of pharmaceutical products and the enter a contract with Marketing/Other companies to produce their products or lease them production facilities.
4. Third-Party Manufacturing
The manufacture for Marketing companies under a mutual agreement and respective approvals from Drug Authorities.
These companies usually utilize their manufacturing capacities by manufacturing the same product with different brand names for different companies, hence cutting down the cost and remain competitive.
5. Marketing Companies
These companies are primarily involved in the marketing of pharmaceutical products through their strategies and Field force. They own the Brand and get it manufactured from Production companies either on contract manufacturing basis or Third Party Manufacturing basis.
6. Research and Development companies/Formulation Development
These companies are neither involved in Marketing or Production, but are essential part as they work to develop new Molecules and Formulations/Drug Delivery dosage forms and transfer technologies/molecules to Production/Marketing Companies on a royalty basis.
7. Analytical Companies
These companies support various functions and Analysis of Market, Molecules, Brand Positioning, Upcoming trends, etc to Companies involved in R&D and Marketing
8. Distribution: Consignee Agents/C&F, Distributors/Stockists, Retailers
This segment facilitates the product reaches its end-user.
Companies Appoint Consignee Agents/C&F agents or Open own Depots to meet the following requirements. Usually once such unit caters the requirement of 1-2 States
- Earliest delivery to stockists, who directly cater to market demands.
- Handle local state issues related to taxations and Drug departments or Associations.
- A stock point where stocks can be kept as per the needs of the area assigned to them.
- Facilitates appointment of Stockists and expanding Distribution network.
9. Clinical Research Companies
These companies are equipped with skills and in-depth knowledge about all phases of Trials on Drugs, They play a very vital and critical role in Phase3 and Phase 4 Studies, besides conducting regular trials for Possible side effects, new Indications, usage of any drugs
10. PCD –Â Propaganda cum Distribution
These are usually small scale operations primarily linked to marketing with small field force which may be as small as 1 to few representatives. In this Model, companies involved in Manufacturing/Marketing Produce/Procure products with their own Brand Names/Trade Marks and Enter in contract/Agreement with Marketeer to market brands/products in specific areas/markets. Usually, Medical Representative or Distributors/Stockists are the Prime customers for these companies
Surgical Products
Primarily the process remains the same as above for manufacturing and Marketing, These companies are involved in the manufacturing of Protective gear like mask, gloves, aprons. Essential surgical tools, Sutures, ETC, Disposables like Blood Bags, Syringes, Catheters, etc.
They are different from Pharmaceutical (Drug Manufacturing) companies primarily by
- Licencing Systems
- Compliance Parameters
- Distribution Channels &
- Marketing Styles.
