Meeting Demands with Manufacturing of Pharma Products

Pharmaceutical Industry is developing at a very faster rate because of its products that are being used by us on daily basis. Some misunderstood pharma products to be associated only with medicines, syrups, capsules, tablets and surgical equipment but today it is not limited to these products only. Pharma companies are now dealing in manufacturing of soaps, face washes, shampoos, hair oil, and tooth pastes etc. which are considered to be as daily used products. With increase in demand pharma companies are in race to supply more and more products to meet the requirements so that the other company cannot take advantage given to them.


It is general rule that when demand increases the supply also needs to be increase as the product might lose its customers if they don’t get it frequently. Sometimes supply is made slower so that the demand can rise and when the product re-enter the market it can be sold on high rates, but with cut throat competition these tactics don’t work nowadays because if supplies aren’t made on time there is a different company’s product available for the same purpose with same or even at a low price. In order to overcome such situations many pharma companies are cutting their work short by contract manufacturing of pharma products.

What is Contract Manufacturing?

A contract manufacturing can be defined as a contract through which a company agrees upon to give authority to the contracted company to manufacture its products. A contract manufacturing can be stipulated with a number of units a contracted company has to make or a contract may be for a specific time period. Different contracts can be made with company companies located at different area, state or a country.

How to Decide Pharma Products That Can Be Contracted?

Before entering into a contract the products should be carefully decided for which a contract has been made. A contract should be given according to the specialisation of company. For example, a contract with soap manufacturing company can’t make medicines and syrups without proper knowledge and legal licenses. Therefore a contract should only be given to those who has proper infrastructure and licenses to manufacture a certain product. Before making contract an inspection should be made by the main manufacturing company to the factories and warehouses of the contracted firm.

What Are the Clauses in Contract Manufacturing of Pharma Products?

  1. Naming the products should be the most essential clause in a contract manufacturing of pharma products to avoid any confusion and misunderstandings. As only those products should be allowed to manufacture which are entered in the contract.
  2. Validity of the contractual period should be clearly mentioned which enables the contracted company to know when to stop the manufacturing hence the company can arrange the raw materials accordingly.
  3. If a contract is made to allow a contracted company to make specific numbers of products then it should be legibly mentioned in the contract both in numeric and words.
  4. Payment procedures should also be openly discussed to avoid any differences.

Thanks for reading. What do you think about this topic? Let us know, by leaving your feedbacks and comments below.


About fitwelpharma

Fitwel Pharma is one of the leading manufacturer and exporter of ayurvedic and pharma products. We provide the extensive range of high quality ayurvedic, nutraceutical and pharmaceutical products in India.
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