CONTRACT MANUFACTURING - A NEW ERA IN PHARMACEUTICAL MANUFACTURING

Contract manufacturing involves production of goods by firm, under the label or brand of another firm. Contract manufacturers provide such service to several firms based on their own or consumers’ designs, formulas, and or specifications. The pharmaceutical industry is big on contract manufacturing. The reason is that buying equipment to mass produce certain chemicals is very costly. And some companies can’t do it. So they enter into a contract with a manufacturer to produce certain chemicals for them so they can combine those chemicals with what they have to produce the end result. When working with contract manufacturing there are benefits and risks. When making the decision on whether or not a company should contract manufacture, the company should weigh the benefits and risks associated with it. Contract manufacturing works if the company gets involved with the right company. If the company were to get involved in the wrong company, the whole process will not work. Mostly contract manufacturing benefits companies who want to give their customers goods or services only they can provide, but using another company to provide or produce the goods, thereby lowering costs. By using contract manufacturing, a company can contract with various companies to sell their products, while saving on costs.