why does the pharmaceutical industry will continue to rely on contract manufacturing

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Contract manufacturing is elevated in demand globally nowadays, especially in the pharmaceutical industry. This pandemic has shaken the globe with high intensity that has surprisingly raised the demand for certain medical support to handle COVID 19. This has raised the demand for contract manufacturing which involves outsourcing the manufacturing of certain pharmaceutical products that are required in higher demand. This is the reason why many big nations like China, India, and others are targeted to outsource manufacturing.


One name, which has carved its destiny and worldwide fame while firmly remaining rooted with the virtues like exceptional services, quality, and innovation, is Akums Drugs & Pharmaceuticals Ltd. It is India’s largest contract manufacturing company engaged in the manufacturing of pharmaceuticals formulations, Cosmetics, Ayurveda and herbal products, Hormonal preparations, Nutraceuticals, and many more. Being committed to deliver an integrated solution that addresses key issues in healthcare including current needs, future opportunities, AKUMS through its dedication, devotion, and unparalleled vision has reached the pinnacle of success and is recognized as one of the best CMOs of the nation.


Akums produces more than 12% of India’s domestically consumed medicines.

Pharmaceutical Contract Manufacturing


The competition in the market has raised the demand and cost globally. To keep the performance at par and to cater to the demand amid highly inflated pricing, many Pharma companies choose to outsource manufacturing bearing in mind these two important factors i.e. the global demands and the cost. Along with manufacturing, the outsourcing companies have a niche in handling core functionalities for manufacturing for their respective companies at the global level that may involve activities like research, innovation, development, branding, and marketing.

Trends & Factors


The demand for some products is supposed to increase over a course of time. Many companies face difficulty in giving the supply as per the growing demand because of complex requirements for manufacturing and capital intensive nature of business. The best option suited to this situation is that the pharma business continues to depend upon contract manufacturing organizations as they provide a swift approach of manufacturing; right from crucial packaging, testing, cart riding, assembling to secondary packaging. A parallel approach is applied for both commercial pharma and clinical products. Consequently, to rationalize the global supply chain and timely meet the market expectations, relying on CMOS will continue.

Mechanized Cost diminution


A production plant for a medicine and drug company requires a lot of investment, manpower, skilled labor, etc.  The cost spent on setup and manufacturing is likely to increase if the size of the company is large. This enhances the probability of such companies outsourcing since contract manufacturing saves the cost. It facilitates them to invest in outsourced based manufacturing at a quite low cost.

Maintaining Quality Standard


The best thing offered by CMO is maintaining quality standards for every medical product and device manufactured under its brand name. They don’t settle for a low-quality standard despite being facing high demands for pharma drugs, medicines, and products domestically or globally. The pharma contract manufacturing has the aptitude to offer the highest quality of products that matches the global demands.


The pharmaceutical companies may focus on core values and competencies when contract manufacturers take a load of manufacturing products along with specialized expertise. As a result, they can cut their manufacturing time with ease which further gives increased speed to market the product; improve delivery time and customer satisfaction.


Maintaining consistent production of high-quality products, raising brand awareness, and establishing itself as a reliable distributor are some traits of contract manufacturing that lead to better business relationships with potential partners and future contractors.