Health Care

What Is Contract Manufacturing In Pharmaceuticals?   

jauhar khan 
@jauhar123 | Posted 12 Jun. 2019

India has already made its appearance in the field of contract manufacturing in the pharmaceutical industry. Contract manufacturing is one of the quickest growing segments in the pharmaceutical industry due to the international regulation quality at low cost.

Contract manufacturing makes an innovative technology which might address the developing trends. It is extremely dynamic and brings a significant change, where it is facing many challenges and at the same time seeing ways to drive growth.

The contract manufacturing space in India is demanded to gain grounds in the near future and required to grow by 17-18 percent on a compound annual growth rate as productivity in manufacturing.

Manufacturing of drugs as well as medicines have become the subject of active debate owing to their extremely nature that attracts stringent commands from policymakers and scrutiny from industry watchdogs. There are many Contract Manufacturing Companies to work with pharma industry to enhance in all kinds of conditions they need.

The industry regulators world-wide such as the MHRA-UK, USFDA, TGA-Australia, MCCSouth Africa have been consistently tightening the legal and ethical norms for end-to-end operations in the manufacture of drugs, patents, clinical trials and research in this field. Consequently, MNCs in this industry, which is primarily knowledge-based and knowhow driven, have found it more beneficial to move out of their parent countries. Complete operations or part of it such as R&D or manufacturing were shifted out to low-cost destinations, such as India, to remain profitable. These host countries had significant positives.

How Does Pharmaceutical Contract Manufacturing Is Used In Future?

The Road Ahead:

As the industry starts on its road to future, it has taken a giant leap and to provide a robust growth rate companies have been exploring newer ways of partnerships such as joint ventures and allowing of innovator products and technologies.

The industry is seeing newer trends such as health insurance, mobile technology, and growth of medical materials industry, which is further giving the reason for the growth of the pharma manufacturing.

The main possibilities for the Indian pharmaceutical industry are in the areas of:

Health Insurance:

Health investment in India is mostly funded out of the pocket, and this is reflected in the poor per-capita investment on health in India. Health insurance is thus important to the growth of the healthcare market, and to the growth of Pharmaceutical Contract Manufacturing Companies in India, in special.

Medical technology:

The medical technology division, which plays an important role in the delivery of healthcare services in India, was estimated at 2.75 billion USD in 2008 (NIPER) and is required to reach 14 billion. USD in 2020 at a CAGR of about 15 percent. The medical equipment segment forms the highest share of the medical technology sector, with over 55 percent of the total market size supported by medical implants segment, which aggregates over 25 percent.


India's biotechnology industry is demanded to grow at an average growth rate of around 30 percent a year and attain US$ 100 billion by 2025. Biopharma, therapeutics, comprising vaccines and diagnostics, is the largest sub-sector providing nearly 62 percent of the complete revenues at Rs 12,600 crore (US$ 1.9 billion) according to the Ministry of External Affairs.

India wishes to sweep the market in bio-genetics and contract manufacturing as drugs go off control, and Indian companies enhance their manufacturing capabilities. So biotech is recognized as a hot field with a lot of growth potential.