A pharma franchise is a franchise model where a pharmaceutical company provides marketing and selling rights to other businesses (retailers, suppliers, pharmacists, etc.) to sell pharmaceutical products while using the parent company’s name, trademarks and more.
Also referred to as the Propaganda cum Distribution (PCD) Pharma, this is an agreement between the pharma company, aka franchiser and the business buying the franchise. As per the agreement, the franchise can enjoy monopoly rights with minimal interference from the franchisers.
The pharma company also provides these franchises with the products, their packaging and distribution along with promotional inputs like notepads, pens, visiting cards, visual aids, and other promotional material.
The full form of PCD is Propaganda cum Distribution. A PCD Pharma Franchise is a pharmaceutical franchise business where a pharma company allows another business to buy a franchise from it and sell its products. This business is responsible for the marketing and distribution of the pharma products provided by the PCD franchise company.
Is PCD Pharma different from Pharma Franchise? Yes and no. There are no major differences between a PCD pharma and a pharma franchise, only some minor ones. The two are defined as the permission given by a pharma company to other businesses to sell and market their pharmaceutical products on agreed terms and conditions.
However, PCD pharma and Pharma franchise differ on the basis of the scale of the business. PCD requires smaller areas, and less investment while franchises operate on larger areas, requiring more investment.
What is third party manufacturing? It is the outsourcing of the manufacture of pharmaceutical products from another manufacturing unit that are sold under your brand name. This works best for pharma companies that do not want to invest in complete manufacturing units, or do not have the funds to do so.
Third party manufacturing helps companies procure same quality products at a cheaper rate, without heavy investments in production.
Monopoly right means that a pharma franchise company provides the exclusive selling and promoting rights for its pharmaceutical products to a particular franchise in the region. This franchise also enjoys working as an independent entity, with minimal interference from the parent company.
Most businesses collaborate with pharma companies that provide monopoly rights to their associates.
The World Health Organization (WHO) as a part of the United Nations, is a public health and welfare organization overseeing that all products produced globally qualify as per the WHO quality standards.
Good Manufacturing Practices (GMP) are practices that ensure all products are produced in compliance to the quality standards and acceptable/recommended procedures for safety purposes.
Both WHO and GMP certifications are required for pharmaceutical products to enter the domestic market and to be sold legally. The WHO-GMP certificates are extremely valuable and imply that the company maintains all quality standards across departments.
These standards are applicable globally and the certifications state that a product is at par with international quality standards.
Ethical, PCD and Generic Medicines are similar in their production, raw material sources, strengths, dosage, efficacy etc., but they have other slight differences. For instance,
A drug license is the government’s permission to businesses, allowing them to deal with drugs and pharmaceuticals. To operate a pharma business in India, companies must apply for a drug license from the Drug Standard Control Organization.
To carry out a pharmaceutical business, there are two major drug licenses : Retail Drug License and Wholesale Drug License.
To obtain either of these licenses, you must-
5 tips to finding the best Pharma Franchise Company for PCD:
Following these simple steps, mostly requiring research on your part, you should be able to find the most appropriate pharma franchise company to collaborate with.
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