What is Third Party Pharma Manufacturing ? Meaning and advantages

third party manufacturing

What is Third Party Pharma Manufacturing ? Meaning and advantages

In simple words, third party manufacturing is a form of business practice that includes two entities. The first one is a Pharma company and the second one is the manufacturer. In third-party manufacturing, the pharma company basically hires a manufacturer who is specialized in drug manufacturing, to manufacture the drugs for the pharma company with its brand name and other pre-decided specifications and are paid accordingly. This process is also known as contact manufacturing because the deal between the two parties is done by a legal contract

Advantages of choosing a third party manufacturer

In-house manufacturing is a very lengthy and complex process as it requires detailed knowledge, expertise, rented or owned manufacturing units, modern technology, and various other things. Moreover, labeling, packaging, and shipping are laborious process that requires a lot of time. To manage and manufacture efficiently requires expertise and experience in manufacturing which is often lacked by most pharma companies. Therefore, the concept of third-party manufacturing is gaining popularity. Pharma companies do not want to indulge in all these intricacies, so they simply contract with a third-party manufacturer and get the manufacturing done for their pharma products.

1. Cost-effective and saves time

Third Party manufacturing is a cost-effective and time-saving process. The Third Party Pharma Manufacturers in India are solely manufacturers so they manufacture in bulk. Therefore, you can get your manufacturing done at a cheaper rate and enjoy the benefits of economy of scale. In addition to this, signing a contract with a Third Party Pharma Manufacturing Company saves your time and allows you to concentrate on your core business through which you can generate greater profits.

2. No investment in machinery required

Once you hire a Third Party Pharma Manufacturing Company for manufacturing your pharma products, the manufacturers are responsible for the production of your products. They will manufacture your drugs in their manufacturing unit which is often equipped with heavy machinery, and updated technology. Therefore, you need not to invest in heavy machines.

3. No need for labor

You do not need to hire labor for your manufacturing process when you enter contact manufacturing. All the labor required for the manufacturing process will be hired by the Third Party Manufacturing Company. Also, their labor is already well trained by the manufacturing company. So, you can save on the training, perks, and wages of
the labor as well that could have been incurred if you did the manufacturing yourself.

4. High-quality products

Manufacturing is the day-to-day activity for the Third Party Pharma Manufacturers in India. Over the years, they gain experience and become experts in manufacturing. Therefore, they can detect complications and quality defects. They eliminate these quality effects at earlier stages in order to manufacture only high-quality products.

If you want to gain a competitive edge over other pharma companies you can choose DPS Pharma for manufacturing your pharma products. DPS Pharma is one of the leading Third Party Pharma Manufacturers in India that can help you to uplift your business many folds due to its vast experience and knowledge in the manufacturing domain. We are specialized in manufacturing different types of pharma products at competitive pricing. DPS Pharma is well equipped with the modern technology manufacturing unit and is ISO certified. If you are interested in getting high-quality products manufactured at an economical cost by the specialists in the field, feel free to contact us. We are available 24*7.