Future Growth Opportunities in Third Party Manufacturing Pharma

Future Growth Opportunities in Third Party Manufacturing Pharma

Pharma is one such sector that is growing much faster in India than most sectors. There are greater numbers of brands launching, medicines being used, and affordable health care services being demanded in smaller cities and towns. One of the most feasible options for businesses to grow without building their own manufacturing plants is third party pharma. The opportunity exists and it is only growing larger. In this blog we'll explore where the growth opportunities are in the third party manufacturing pharma business and which segments are gaining traction.

Where the growth is coming from?

Growth in third party manufacturing pharma is not from a single source. It is spread out in various segments, all growing at the same time.

·       Chronic Disease Segments - Diabetes, blood pressure and heart diseases require lifelong medication. This ensures a steady and predictable demand for brands that produce its products in this category.

·       Nutraceuticals and Wellness - Vitamins, immunity boosters and health supplements are booming. This manufacturing is the preferred way by most brands in this area as it helps them to keep their expenses low while adding their brands to the list.

·       Paediatric and Gynaecology - These are always consistently sold. Third party manufacturing is the preferred option for new brands for its faster product launches.

·       Derma and Cosmeceuticals - Skin care medicines, creams and gels are seeing rising demand. The manufacturer which has necessary plant for these products is highly desired.

·       WHO-GMP Certification - Manufacturers seeking to provide quality assured products to regulated markets as well as export markets are sought after

Segment that will drive Future Demand

Healthcare infrastructure is increasing in tier 2 and tier 3 cities. Smaller towns are seeing the opening of new hospitals, clinics and chains of pharmacies. This is driving growth of demand for medicines at the local level, which has led to growth in local brands.

This is also largely driven by the PCD pharma franchise model. With the number of people starting up a franchise based pharma business in various states, there is a need for a reliable range of products. Such product lines are from third parties.

When to enter or expand the business?

Brands who have been undecided about outsourcing production have a big reason to do so now. Indian infrastructure for third party pharma manufacturing has improved a lot. Increased GMP certification of facilities, improved definition of quality processes and improved turnaround times.

There has also been an improvement in the regulations, thanks to the government's efforts to make India a global hub of pharma manufacturing and supply chains have become cleaner. This therefore gives brands more confidence in using the third party partners than ever before.

Final Thoughts

So the future looks very bright for third party manufacturing pharma in India, and it is unfolding. New brands, new franchise partners, new patents, new medicines for needy people in smaller towns all mean more opportunities in this space. Sencare Lifesciences collaborates with brands in various therapeutic areas and provides dependable third party pharma manufacturing, PCD pharma franchise support and contract manufacturing services to companies looking to grow without the hassle of establishing their own manufacturing operations.