Different types of Pharmaceutical Companies and their plants
By: Dezin Consulting Private Limted
Tags: Business Coaching, Pharmaceutical, Business Consulting

Playing a vital role in the health sector, Pharmaceutical companies discover, manufacture and develop drugs for a wide variety of diseases. These diseases include various simple conditions for complex diseases. The drugs from these companies help prevent, cure and control these diseases. The development of these drugs involves a lot of complex variety of processes. Here are several types of pharmaceutical companies and divisions explained by an expert business consulting firm in India.

The divisions are as follows:

1. Manufacturing units

2. Marketing units

3. Research and development units

While some companies focus only on one or the other divisions like manufacturing or marketing, large MNC’s fall under the term Brand developers as they contain all of these divisions running under them. Some companies even have combinations of these divisions.

1. Pharmaceutical Manufacturing Units

There are several facilities that fall under the manufacturing units of Pharmaceutical companies.

a) Formulation Manufacturing Plant

b) API Manufacturing Plant

c) Contract Manufacturing Organizations (CMO)

A) Formulation Manufacturing Units:

Also known as formulation production units, these units manufacture FDF (formulation/finished dosage form) which are ready for the marketing unit. Broadly classified these formulations can be divided into 2 parts- Generic Formulation and Branded Drug formulation. Small companies produce generic formulations while large companies produce both generic and branded formulation. Before production, however, these companies require approval from a respected regulatory authority.

B) API Manufacturing Units:

API stands for Active Pharmaceutical Ingredient. API is vital to prepare any dosage formulation and there are no formulations available without API, placebo being the only exception. Intermediates, also known as building blocks for the synthesis of API are also produced in these plants. These intermediates are sold to pharmaceutical companies for the production of the finished formulation. You can get in-depth knowledge about API from a business consulting firm in India.

C) Contract Manufacturing Organizations (CMO):

It is a segment of Contract Research and Manufacturing Services also known as CRAMS.

CRAMS: To avoid the cost, time and low productivity some large companies outsource some of their work to CRAMS. CMO offer their services to different pharmaceutical companies. They manufacture API or FDF in small or large quantities.

1. R&D Plant

To develop a Formulation or API several batches of trials are held. The final formulation is executed in manufacturing plants if they complete the stability studies. There are several types of R&D plants, which are as follows:

A) NCE R&D

These R&D revolves around New Chemical Entity which isn’t approved by any regulatory authority yet. Preparation of a new chemical entity is not only expensive but also lengthy and complicated in nature involving Drug discovery, Pre-clinical and Clinical development.

B) Formulation R&D

These focus on developing new formulations, branded or generic in nature. There are no specific R&D for either generic or branded formulations, they can both be developed in one R&D.

C) Contract Research Organization

Just like CMO, CRO is also a segment of CRAMS and provided research and trial services to sponsor companies. They get most of their contracts from pharmaceutical companies. Other sources of contracts are institutions or research foundations.

1. Pharmaceutical Marketing Companies

These companies are also known as Trade companies and they dedicated themselves to marketing services. They sell the manufactured products from the pharmaceutical companies, which helps a lot to push the product in the market. If you read carefully behind the package strip you might notice the manufactured by and distributed by columns.

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