Third Party Pharma Manufacturing: Process, Cost & MOQ

Want your own pharma brand without a plant? Third party manufacturing lets a certified manufacturer make products under your brand. Here is the process, what affects cost and how MOQ works.

What is third party manufacturing?

In third party (contract) manufacturing, a licensed manufacturer produces medicines under your brand name. You handle marketing and sales; the manufacturer handles formulation, production, testing and packing at its approved plant. It is how most marketing and PCD companies in India build a range without investing in a factory.

The process, step by step

1. Product list — share the compositions, strengths and pack sizes you want.
2. Quotation — the manufacturer quotes a per-unit rate and MOQ for each product.
3. Brand name and artwork — you choose brand names (check trademark availability) and approve packing artwork.
4. Agreement and advance — sign a manufacturing agreement and pay the agreed advance.
5. Product permission — the manufacturer adds your brand to its product permissions where required.
6. Production and QC — manufacturing, in-process checks and finished product testing.
7. Dispatch — goods are dispatched with batch-wise test reports (COA) and invoice.

First orders usually take about 30–45 days from artwork approval, depending on the product and packing material.

What drives the cost?

• Composition and API cost — the biggest factor
• Dosage form — tablets are generally the cheapest; injections, softgels and sterile products cost more
• Packing — blister vs strip, carton quality, printed foil, bottle type
• Order quantity — larger batches lower the per-unit cost
• Plant certifications — WHO-GMP plants may cost slightly more but make products easier to sell

Understanding MOQ

MOQ (minimum order quantity) exists because a production batch has fixed set-up costs and packing material is printed in bulk. MOQs vary by manufacturer and dosage form — ask for the MOQ per product and per pack size, and whether printed packing material left over from one batch can be used in the next.

How to choose a manufacturer

• Valid manufacturing licence and WHO-GMP / ISO certificates
• Experience with your dosage forms and therapy area
• Clear rate list, MOQ and delivery timeline in writing
• Batch-wise COA with every dispatch
• Plant visit, if possible, before the first order

Compare certified plants in our third party manufacturer directory, or check the manufacturing sections on the categories page.