by Rozer Samith Technology

The pharmaceutical businesses are flourishing with leaps and bounds all over the world. This business model needs high investments and specialization. That’s why people avoid investing in  pharmaceutical business ventures. However, there are two most popular business terms in the pharma world to play safe in this business line. One is PCD PHARMA FRANCHISE and another is THIRD PARTY PHARMA MANUFACTURING.People know that these both business models are simple and profitable. However, they get confused when they have to select the best one from both business models. Today we will explore benefits of both business models and opt for the better one.


PCD(Propaganda-Cum-Distribution) is a business model where a parent company provides selling and marketing rights of their product to another company with territory rights. They also provide marketing and sales support to franchisees.

Advantages of PCD Pharma Franchise

There are several benefits associated with PCD Pharma Franchise mentioned below:

Already Established Brand: Investing in PHARMA FRANCHISE of a pharma company is profitable. Because these companies provide marketing and selling rights of an already established brand in the market. So these franchises can focus on expanding marketing networks instead of focusing on competitors.

Marketing and Sales Training : The parent companies provide marketing and selling support to their franchisees. They want them to focus on expanding their market networks. That’s why they provide training and support programs to franchisees throughout the investment.

Monopoly Rights: The parent company allocates marketing and selling rights to franchisees in a geographical area. This assists franchisees to avoid internal competition and focusing on expanding market networks.

Minimal Investment: Instead of establishing a pharma unit, which is very costly. You can invest in a PCD Pharma Franchise. Where you will get the opportunity to handle an established brand with marketing and sales support. 


Third Party Pharma Manufacturing or OUTSOURCED MANUFACTURING is a business model in which a pharma company contracts with a Third party manufacturing firm to manufacture its products in bulk.

Advantages of Third Party Pharma Manufacturing

There are several benefits associated with Third party pharma manufacturing mentioned below:

Cost-Effective: Giving your pharma orders to manufacturing firms will save costs of building your own manufacturing units and arranging resources for manufacturing. These THIRD PARTY CONTRACT MANUFACTURING firms save cost as well as share manufacturing responsibilities.

Concentrate on Core Competencies: By giving your manufacturing order to third party firms. You can shift your focus to your core competencies such as marketing, sales, etc. 

Quality Assurance: Third party manufacturing firms produced quality-assured goods. They have gained expertise in producing safe and secure pharma products. Moreover, this will enhance your brand reputation in the market.  

Scalability: The contract manufacturing units have potential to increase or decrease the manufacturing capacity according to market demand of products.

Choosing the Right Model

One should consider these factors before choosing right one from PCD franchise and Third party manufacturing:

Resources and Expertise: Take a detailed consideration about your financial limits and expertise. PCD franchise needs specialization in marketing and sales. However, third party firms need expertise manufacturing pharma products.

Risk Management: Select a business model in accordance to risks involved with  them. PCD pharma franchise involves risk associated with marketing, sales and competitions. Whereas, a third party involves risk related to production of goods, directly hitting companies reputation.

Regulatory Compliance: Invest in a company according to your will to maintain regulatory standards. Pcd needs regulatory focus on the marketing sector and third party needs focus on searching reputable and trustworthy units for manufacturing.

To sum up, both business models are profitable and have numerous benefits. However, one should not forget the main factors to opt for the right one.

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About Rozer Samith Innovator   Technology

18 connections, 0 recommendations, 70 honor points.
Joined APSense since, July 3rd, 2019, From los angeles, United States.

Created on Sep 27th 2023 12:53. Viewed 173 times.


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