Contract-manufacturing company plays a significant role in reducing costs and drug development risk thus adding value in product development SAVA Research.

1. SAVA RESEARCH
CONTRACT MANUFACTURING COMPANY
AND
ITS ROLE

2. Contract manufacturing company establishes a
mutual agreement between two companies where
one company produces materials or raw materials
for the other company.
The other company then uses that material for the
manufacture of finished products. The former
company that manufacturers raw materials also
handles the shipping and dispatch of material to the
client to ensure that things are carried out in a
proper manner.

3. The working model of a contract manufacturing
company will suit to any business type as it
essentially involves outsourcing the production to
the other company.

4. The growing demand of outsourcing
Coming into the picture of contract manufacturing, global
pharmaceutical industry is bringing new trends and thus the pharma
world is also experiencing a drastic and dynamic change. With the view
to cut cost of drugs all pharma companies are reducing their cost,
manufacturing capabilities, R&D cost, internal capabilities and are
rather focusing on outsourcing.
These drug companies are now relying more and more on those who
provide outsourcing services with the view to fulfill their needs and cut
costs as well. This trend is also witnessed by the pharmaceutical
contract manufacturers in India in recent times.

5. Restrictions faced by some companies due to global
financial crises
This outsourcing demand exists mainly in the R&D focused
biotech industry. There are many VC investors whose
global funding models have changed mainly due to a
funding shortage. There are various biotech companies
that have reduced their programs and some have even
gone to the extent of closing the entire operation. Due to
worldwide financial crises some small R&D companies
have less demand for outsourcing.

6. But irrespective of this fact there are certain benefits
of pharma contract manufacturing companies that
cannot be ignored –



It drastically reduces cost
It brings down drug development risks
Manufacturing facilities are enhanced thus
providing an added advantage in product
development and has good chances to get various
accreditations.

7. These are few but very strong reasons as to why
some solid/liquid/oral formulation manufacturer
in India has recognized as well as adapted to
contract manufacturing.
Pharmaceutical contract manufacturing in India
will witness a greater boom in recent years owing
to the expertise available in this nation and
comparatively lower cost.
Note: The information mentioned in this presentation is solely the opinion of the author and is published for informational purposes only; Sava Research or
its affiliates bear no responsibility on the authenticity of the information published herein.