Difference between manufacturing company and pharma marketing company

We have noticed many times on the packing of some drugs it is clearly written that they are manufactured by one company while marketed by another one. It means the same drug is manufactured in one company but marketed by a different company. For manufacturing medicine, one needs a specific license from the drug authority of India and therefore it is compulsory to mention the name of the drug manufacturing company on the box of medicine. There are several PCD Pharma Companies in India, which does not have manufacturing facilities so they get manufacture their required medicine from WHO- GMP certified pharma manufacturing companies. These pharma franchise companies establish themselves as pharma marketing company so they can market and distribute their products easily. Pharma marketing company contains ownership and decide the brand name. That is why their name is written on the box of a drug as “marketed by ABC company”.

These PCD Pharma Companies ­­­­­provide contract of manufacturing on third party basis and appoint area wise pharma franchisee to sell their pharma products. Many companies have also started export in other countries. By manufacturing their pharma products on a contract basis, they simply save their huge capital from investment and can focus more on sells by making different marketing strategies. Their expense is also low as they do not need to hire staff for the manufacturing process. They save a large amount from the monthly expense and invest it on marketing. Some Pharma franchise companies are also operating from single room office. They promote their business on ethical or on a franchise basis. They contain drug distribution license and GSTIN from authorizing authority. By this method, they can earn more profit then manufacturing companies. It is the best business strategy for new entrants as they have limited sources and investments available for establishing their venture. In starting, they can start their business as a pharma marketing company. When their sale starts to grow then they can enter in manufacturing segment for better control of supply and costing. Some other factor like company reputation, service, product range, product rate, party size may help to increase the business of PCD Pharma Company in India. It is essential to make good relation with every channel partner and provide maximum benefits but as a PCD company, you also need to work with a good margin to meet all company and personal expenses.