Contract mfg enables companies to focus on core activities

In an era when pharmaceutical companies are persistently working to introduce groundbreaking and transformative medications, pharmaceutical contract manufacturing has surfaced as an effective strategy to improve operational efficiency and optimise workflows.

- Komal Saini and Vandita Kakkar

This approach entails collaboration with specialised contract manufacturers to create pharmaceutical products for brand-name firms.

Pharmaceutical contract manufacturing involves the delegation of production processes to external manufacturers, enabling pharmaceutical companies to concentrate on their core activities such as research, development, and marketing. This approach encompasses a wide range of pharmaceutical products, including generic medications, over-the-counter drugs, and intricate biopharmaceuticals.

It has become an essential aspect of the pharmaceutical sector, offering firms the necessary flexibility and specialised knowledge to manage the intricacies of drug production. This framework involves delegating the manufacturing activities to external entities, referred to as contract manufacturing organisations (CMOs), that possess expertise in the production of pharmaceutical goods.

There are two prevalent categories of contract manufacturers: primary and secondary manufacturers. Primary manufacturers are those organisations responsible for the production of active pharmaceutical ingredients, whereas secondary manufacturers focus on the packaging and labelling processes associated with these medications.

The pharmaceutical sector, despite experiencing significant growth and achieving record profitability over the years, is currently confronted with substantial challenges, including a diminishing rate of newly developed chemically synthesised small molecules and a decline in research and development (R&D) productivity.

In response to the imperative to explore untapped markets and enhance R&D efficiency, multinational pharmaceutical firms are increasingly turning to contract research organisations (CROs) in Asia, particularly in emerging markets such as China and India.