New Pharma Policy: Would Third Party/Contract Manufacturing be Banned?

As per news circulated through out web, news paper and tv, third party/ contract manufacturing is going to be banned. But we are not sure about source of these news and whether these are true or not. If these are true, then it will not be beneficial for pharmaceutical sector. A large number of manufacturing units and thousands of marketing companies have shut down. This will be great loss to pharmaceutical sector and ultimately medicines will be costlier due to monopoly of few pharmaceutical countries.

We received queries in this regard from many readers, so we decide to analysis few facts about these news. We will try to find out whether these romours are true or false.
Here we are going to discuss about fact which will be change for third party or contract manufacturing. We don’t think, third party or/and contract manufacturing is going to be banned because it is legal phenomena and helpful in growth & new business possibilities. If we study today’s big player in pharmaceutical sector, they started as marketing company. Later they established or overtake manufacturing units. Establishing Marketing Company is much easier than to start a manufacturing unit. If government bans third party/contract manufacturing, then it will effect adversely at pharmaceutical sector growth and will increase unemployment.Here look at possibilities that would be covered by New Pharma Policy:

In 2006, Draft National Pharmaceutical Policy, Heading Control on Pharmaceutical brands describe a very serious issue. This is what that should have resolved many years ago. This issue was related to brand name resemblance and same brand name for different preparations. For example, We have a Brand Name  Cef for an active ingredient Cefixime and another company is using Cef for an active ingredient Cefpodoxime. Same brand name is using for different active ingredients.

In second case, Company A and Company B, both are using same Brand Name PAR for paracetamol. This create confusion and lead to mis-branding. We have taken a example of only two companies, there are many cases where same brand name is using by number of pharmaceutical companies.  These type of activities have the potential to cause immense harm through mis-prescription and/or wrong dispensing. (We use brand name for sample purpose without checking whether they belong to any company or not. In case these belong to any company, please mail us at for correction)
In India there is no appropriate system to rectify these errors, so it was suggested that “branding of drugs and other therapeutics should be brought under the Central drug regulatory system. The drug regulator must be required to maintain a data base on brands and their compositions, and all brand registration of drugs must compulsorily be approved by the drug regulator. In particular, no change should be permitted in the composition of a given brand. Necessary changes would be made in the Drugs & Cosmetics Act, 1940 in this regard.”

Read Related: What would be Trade Margin if government fix margin for Pharmaceutical Products?

Few years back, manufacturing companies got approval with Brand Name, Generic Name and Marketed by companies Name from state drug department which was not a desirable practice when marketing is done at the national level. State authorities wasn’t check for brand name already approved/applied within state and/or approved/applied in other states. So, these types of approvals were stopped and approval from generic names were started to manufacturing companies. Once a generic approval was given to a manufacturing company, it was allowed to manufacture any number of brands with single generic approval. It worsen the condition because drug authorities don’t have any control of manufacturing from Brand Names.

At present present, manufacturing companies get approval by generic name. So drug department don’t have any control at third/contract party manufacturing and brand name fixed by manufacturing and marketing companies. Brand Name registration is at present come under Intellectual property act only and Intellectual property doesn’t cover composition or active ingredients or any technical detail.  Possibility is there government want to regularized third party manufacturing. Draft National pharmaceutical policy, 2006 suggested to transfer brand name approval to central drug regulatory system. But minimum chances of banning third party manufacturing

As per our analysis, it would be compulsory to take brand approval from central drug regulatory by manufacturing or/and marketing company before launching a new product in market other than generic approval by state authorities. Without that no marketing or/and manufacturing company shouldn’t market a product in Indian market. Brand name approval should be compulsory from central drug regulatory whether a manufacturing company has generic approval from state authorities. It will helpful in controlling brand name conflicts as all approvals will be made from single authorities and all records will be maintained. Banning of third party or/and contract manufacturing is not a solution.

One another hot issue of new drug policy is related to labeling of single active ingredient preparations. It is suggested that all single salt preparations should have only generic name, not brand name. Many developing countries have adopted this label pattern along with many developed countries. In India if this implements, it should be welcomed by pharmaceutical industry. If that happens, A single active ingredient will be like a classical preparation in ayurvedic medicines. A well known Ayurvedic Classical Preparation “Ashokarishta”. We find only company logo like Dabar, Zandu, Elzac etc and Name will be same as Ashokarishta. Likewise only Logo in single pharmaceutical active ingredient preparation would be allowed and salt name will be same below logo.

Hope above information is helpful to you…

For any query and suggestion, mail us at

What would be the Trade Margin Under New Pharma Policy?

New Pharma Policy is hot issue in pharmaceutical sector now days. There are many rumours circulating in industry about new pharma policy. Some may be true and some may be false. Most concern rumours are Banning of Contract and Loan License manufacturing, Fixing of Trade margins and removing brand name from single salt preparations. In this article, we are going to discuss about trade margin fixation. If trade margin has fixed then what could be it. Here we are taking the reference of Draft National Pharmaceutical Policy, 2006. Trade margin is complex phenomena and has been the subject of intense debate from time to time. Everyone has own views in this matter. If government fix trade margin then there is maximum possibility, it would be as described below:

Fixation of Trade Margins in Pharmaceutical Sector:
In case Trade Margin is to fixed then the trade margins for different drugs would be:
Drugs under price control (DPCO):

For Both Branded and Generics Drugs
Wholesaler Margin: 8%

For Other Drugs(Not under Price control):

For Branded and Branded generics

Wholesaler Margin: 10%
Retailer Margin: 20 %.
For Generics 
Wholesaler Margin: 15%
Retailer Margin: 35%All margins would be calculated on the MRP of drug or trade rate.

Related Article: New Pharma Policy: Would Third Party/Contract Manufacturing be Banned?

How to Start Pharmaceutical Marketing Company in United State of America (USA)

Starting a company or business involve few essential step in every field. Same for pharmaceutical company.
Here we are going to discuss about setting-up pharma marketing company in USA with minimum investment and time through out sourcing from India.
For starting company in united state, first you have to fulfill company registration, product registration and licensing formalities in America.


Steps involve in start a Pharmaceutical Marketing Company in USA:

  • Get Pharmaceutical Business Assistance, Experience and Training
  • Write a Business Plan
  • Choose Location of Business
  • Finance Source (Own Saving, Bank Loan, Investment etc.)
  • Choose Company/Business Name (Doing Business As)
  • Registration of Company (Proprietorship, Partnership, LLC, corporation, non profit or cooperative)
  • Registration of State and Local Taxes
  • Apply for EIN (Employers Identification Number)
  • Apply for License and Permit for conducting Pharmaceutical Business
After complete Business registration, you are eligible to start Pharma Marketing Company in USA. Now you will need to procure Medicines with Marketed by Name of your Company. Here we are going to tell you low investment method to procure medicines by your marketed by Name. India is one of the largest manufacturer of medicines in world and it could be helpful in starting Pharmaceutical Marketing Company in USA. For outsourcing pharmaceutical products from India, following steps has to be followed:

Read How to export pharmaceutical products from India?

Hope above information is helpful to you…
For any query and suggestion, mail us at

What is IEC ( Importer Exporter Code Number)?

IEC is a short form of Importer Exporter Code. Importer Exporter Code is compulsory in India if a person want to import or export any goods or service. It is ten digit code issued by DGFT- Director General of Foreign Trade , Ministry of Commerce, Government of India.
What is IEC?
An IEC is a 10-character alpha-numeric number allotted to a person that is mandatory for undertaking any export/import activities. With a
view to maintain the unique identity of an entity (firm/company/LLP etc.), consequent upon introduction / implementation of GST, IEC will
be equal to PAN and will be separately issued by DGFT based on an application.

How to Apply:

Application for obtaining IEC may be filed online in ANF 2A with applicable fees and submitted with digital signature.

  • Visit at  website for or Online Application”.
  • Follow the steps
  • This page will have information about online IEC application detail along with Apply online. Click at “Click here to Apply”.
  • Following Link will Open :
  • Enter your PAN number to login. Click at next.
  • You will be Logged in. Upload all necessary documents and information for getting IEC number.

When an e-IEC is approved by the competent authority, applicant is informed through e-mail that a computer generated e-IEC is available on the DGFT website. By clicking on “Application Status” after having filled and submitted the requisite details in “Online IEC Application” webpage, applicant can view and print his e-IEC.

Documents Required for Importer Exporter Code (IEC) Number:
In case of fresh e-IEC:

  • Digital Photograph (3x3cms) of the Signatory Applicant
  • Copy of PAN card
  • Bank Certificate or cancelled bearing the applicant entities name

Related Article: How to export pharmaceutical products and medicines from India?

In case of Modification of IEC:
Upload the requisite documents in digital format as detailed below:

For Proprietorship Firm

  • Digital Photograph (3x3cms) of the Proprietor.
  • Copy of PAN card of the Proprietor.
  • Copy of Passport (first & last page)/Voter’s I-Card/ Driving Licence/UID (Aadhar card) (any one of these).
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
  • Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No.

For Partnership firm

  • Digital Photograph (3x3cms) of the Managing Partner.
  • Copy of PAN card of the applicant entity.
  • Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/PAN (any one of these) of the Managing Partner signing the application.
  • Copy of Partnership Deed.
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
  • Bank Certificate as per ANF 2A (I)/Cancelled Cheque bearing preprinted name of the applicant entity and A/C No.

For LLP firm/Government Undertaking/Public Limited Company/Private Limited/Company Section 25 Company

  • Digital Photograph (3x3cms) of the Designated Partner/Director of the Company signing the application.
  • Copy of PAN card of the applicant entity.
  • Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Managing Partner/Director signing the application.
  • Certificate of incorporation as issued by the RoC
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill
  • Bank Certificate as per ANF 2 A(I)/Cancelled Cheque bearing preprinted name of the company and A/C No .

For Registered Society

  • Digital Photograph (3x3cms) of the signatory applicant/Secretary or Chief Executive.
  • Copy of PAN card of the applicant entity.
  • Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Secretary or Chief Executive/ Managing Trustee signing the application.
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
  • Registration Certificate of the Society / Copy of the Trust Deed
  • Bank Certificate as per ANF 2A(I)/Cancelled Cheque bearing preprinted name of the Registered Society or Trust and A/C No. Trust


  • Digital Photograph (3x3cms) of the Karta.
  • Copy of PAN card of the Karta.
  • Copy of Passport (first & last page)/Voter’s I-Card/ UID (Aadhar card)/ Driving Licence (any one of these) of the Karta.
  • Sale deed in case business premise is self-owned or Rental/Lease Agreement, in case office is rented/ leased or latest electricity /telephone bill.
  • Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No.

Any other document considered relevant for the application .

Hope above information is helpful to you…
For any query and suggestion, mail us at
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Queries Related to Ayurvedic Export

Related Query:
I want to deal in ayurvedic products like shilajit, salam, panja garlic. I want to export. Can i get registration to export these products
For exporting Ayurvedic products, you need free trade export license. read documents and procedure for export of Ayurvedic 
You can read general requirements for exporting Ayurvedic medicine in this article. You can export your mentioned ayurvedic products after fulfilling all requirements that are required by export department of India and Import department of country to which you want to export.
Related Query 2:
I wants to start Papaya leaf extract and capsules manufacturing and export. Please advise me that what are license to be obtained and where shall I get technical know-how for manufacturing process.
For manufacturing of papaya leaf extract and capsule manufacturing, you will need Ayurvedic manufacturing license. Read whole process for taking Ayurvedic License by clicking here
For export, you have to apply for IEC (import/export code) and free trade license. Read complete process of exporting ayurvedic medicines by clicking here
Technical guidance you can take from manufacturers already manufacturing papaya leaf extract.
For any query and suggestion, mail us at

WHO Good manufacturing practices for pharmaceutical products

GMP is that part of quality management which ensures that products are consistently produced and controlled according to the quality standards appropriate to their intended use and as required by the marketing authorization, clinical trial authorization or product specification.

GMP is concerned with both production and QC. GMP is aimed primarily at managing and minimizing the risks inherent in pharmaceutical manufacture to ensure the quality, safety and efficacy of products.

Under WHO-GMP: 

1. All manufacturing processes are clearly defined, systematically reviewed for associated risks in the light of scientific knowledge and experience, and shown to be capable of consistently manufacturing pharmaceutical products of the required quality that comply with their specifications;
2. Qualification and validation are performed;
3. All necessary resources are provided, including:
  • sufficient and appropriately qualified and trained personnel i.e. Manufacturing Chemist, Analytical chemist, supervisor etc,
  • adequate premises and space,
  • suitable equipment and services,
  • appropriate materials, containers and labels,
  • approved procedures and instructions,
  • suitable storage and transport,
  • adequate personnel, laboratories and equipment for in-process controls;
4. Instructions and procedures are written in clear and unambiguous language, specifically applicable to the facilities provided;
5. Procedures are carried out correctly and personnel are trained to do so;
6. Records are made (manually and/or by recording instruments) during manufacture to show that all the steps required by the defined procedures and instructions have in fact been taken and that the quantity and quality of the product are as expected. Any significant deviations are fully recorded and investigated with the objective of determining the root cause and appropriate corrective and preventive action is implemented;
7. Records covering manufacture and distribution, which enable the complete history of a batch to be traced, are retained in a comprehensible and accessible form;
8. The proper storage and distribution of the products minimizes any risk to their quality and takes account of good distribution practices (GDP);
9. A system is available to recall any batch of product from sale or supply;
10. Complaints about marketed products are examined, the causes of quality defects investigated and appropriate measures taken in respect of the defective products to prevent recurrence
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How to Create an Effective Facebook Advertisement Campaign Pharmaceutical and Healthcare Sector?

We all know Social Networks. We all know Facebook. We all know Facebook sells ads. We all see sponsored posts in our news feeds. We have become used to these posts. Facebook is a business who sell ads to its member. Facebook emerged as a powerful tool for marketing and branding in online era. But unfortunately researches show that only 10% of Big Pharma and Healthcare Brands are successful in creating good social presence and followers engagement. Facebook and other social networks are marketing monsters tools that can’t be ignored by Healthcare Sector. But most of companies are suffering to get followers engagement. That means either people are not interested to get healthcare information at social networks or Companies have been failed to create such information and social presence that are unavailable to satisfy users requirement.Social Networks could be helpful in brand building along with getting some business but for this we have to learn how to use face for business promotion. Here we are going to discuss about Facebook Business Promotion and effective Facebook Ad campaign. In this article we will discuss things to understand for effective Facebook Page building, How to create a Facebook business page, how to run effective facebook ad campaign. First discuss about important things about Facebook Page.

Before starting with facebook ad. We first learn to need about Facebook way of working. We have a option of creating Page. Facebook considers a Page as Business. If we are going to create a page at facebook. Facebook will thing its our business. For example we created our Facebook Page Pharma Franchise Help to promote our blog at social network. This page prime purpose to create presence at social network. That doesn’t become effective and number of likes, shares wasn’t as effective as it should be. Reason of not getting popularity was not poor content or not having good information but prime reason is that Facebook has changed its policy and number of Page feeds in Users Post was declined by facebook at major extent. It has removed 90 percent of page feeds and only show 10% page feed when an user log in his account.

That’s the major set back for new facebook pages who recently become aware about Facebook as advertisement tool and we consider it free marketing tool. That was our elusion, it was not more free. Either we have to create more viral content or we have to pay to facebook for showing in users feed. With page having 25000 page likes, a page post will hardly reach to 1500 users organically. Percent of organic reach is much lesser then we expect. From 1500 users hardly 80 to 90 person will engaged with post. Engage word is used at Facebook for any action taken by user for particular post like Likes, Share, Comment etc. These numbers are very less.

Reason behind these lesser organic reach is to boast advertisement and encourage business pages to pay more to facebook for more engagements. So facebook is no more free for business. Its free for its users because they help it to get money from businesses. Facebook Ad is good way to making brand awareness and effective way to tell people that we are also present in market. But its good way to get instant business in healthcare sector or not is matter of more research.

Things to be considered For effective Facebook Ad Campaign:

  • Start with Low Budget and Increase it gradually according to response from previous advertisements.
  • Don’t Directly Sell any thing at Facebook. Facebook is not for selling purpose. Facebook is one of the best tool to get brand building and brand awareness. Selling too much or offering too much can’t cause negative branding.
  • Use Best image related to company/organisation/service or providing valuable information is good way to start Ad campaign. Image and videos get more engagement as compare to simple text post. Facebook also advice to get started with image (with minimum written portion) and video to get better results.
  • Provide valuable information at Business Page. Don’t promote unnecessary own self. People use Facebook to contact with other people, acquire knowledge and spend free time interestingly and with entertainment. They don’t use it to buy or sell any thing. If we provide valuable information, own brand will automatically highlight.
  • Small Post, Interesting Images and Short Videos are best way to contact with our followers. Original post, images and videos get more engagement as compare to copied.
  • Don’t follow or copy techniques and ideas of other pages. Create own style and ideas to promote own brand. If others are using any idea and we use same then why people will like or follow us to get information or entertainment.
  • Post regularly. Pages with regular posts get more engagement compare to pages with rare posting.
  • Create a Blog. Blog is one of the most crucial way followed by big brands to engaged with its customers and followers. Having blog and posting regular posts at page give it more ethical look to a Business Page.

This could also be helpful to generate franchise/pcd queries for Pharma Companies. As we mentioned in our Article how to generate sale and parties for Pharmaceutical franchise Company, Facebook may be an important tool for getting Pcd and Pharma Franchise Queries and generating sale. Now many pharma franchise companies have started to experiment facebook ad. Before this Google Adwords was only way to get franchise queries by means of using online advertisement other then promoting own website or certain portals whose most of queries are always fake. Facebook Ad is good way to making brand awareness and effective way to tell people that we are also present in market. But its good way to get instant franchise query or not has not surety. As we analyse it, its not an instant way to get franchise distributor or persons. Its way to promote company to create interest and awareness about products and services.

How to Create Facebook Business Page?
Steps For Desktop:
Step 1: Log in at Facebook profile (Individual/Company etc)

Step 2: Click at Right corner button as shown in below image

Step 3: Click at Create Page as shown in above image.
Step 4: A create page option will open. Showing option for which type of business we want to start or page will represent which type of option from below options. Options will be generally as like:

  • Local business or Place
  • Company, Organisation or Institution
  • Brand or Product
  • Artist, Band or Public Figure
  • Entertainment
  • Cause or community

As shown in below image

Step 5: Click at Company, Organisation or Institution Option if we want to promote Company. Click at Brand or Product option if we want to promote any one or certain products.

Step 6: Choose from the category and Enter Name of Organisation or Company.

Step 7: Click at Get Started at shown in Image above. A Page Showing Company Name will be open as shown in Below image:
Step 8: Add Cover photo, Set user name and add logo or company profile picture at places shown in picture above. We can also invite our friends to like this page.
Step 9: Now Facebook Business page has been created. This will be like as below image after adding all things:
Now we have a Facebook Business page for advertising, promotion and brand awareness at this giant social network.
Steps for Mobile:
For mobile Facebook app either login in Facebook app or Facebook Page Manager App. In Facebook app click at profile section. Scroll then below to find Create Page option. In page manager app click at left side menu, scroll down to find new page option. Enter Name of Page as per Company Name or Brand Name and Follow the steps.
Step 1: Click at Create page option as shown in Image below:

Step 2: Click at Get started option for proceeding to building page as shown in below image:

Step 3: Enter Page Name from which you want to start. Name may be Company Name, Brand Name or Any other related name.
Step 4: Choose Category for your page. Click at choose category option.

Step 5: Choose Category. Select as per need. Whether we are company, organisation, a brand or product or blog or website. What ever we are, we have to choose.

Step 6: Choose Sub category as shown below:

Step 7: Click at next to proceed

Step 8: Add Company/Organisation or blog or any other related website if we have. If don’t have skip it.

Step 9: Add profile picture. Generally logo. If don’t want, skip it

Step 10: Add cover picture. Generally best from the images. If don’t want, skip it

Step 11: We will have Final Facebook Business Page
How to Run an Effective Ad Campaign at Facebook?

Facebook allow to advertise Page, Post and company website in Business Page. These can be handled by our Business Page. Business Page is boosted to get more likes and create brand awareness among facebook users. Page Post is boosted to get more visitors at particular article, product web page or service section etc. If our motive to get more visitors to our website then we can boost website to users to get more visitors to our website.

Facebook campaign could be fruitful if managed properly and could have been totally waste of money and time if not managed properly. Facebook has huge user base. These users belong to different interests, professions, regions, languages, society and cultures etc. All are not useful to us. One of the main reason of failure of Facebook ad Campaign is not targeting accurate audience. Visitors at our website that don’t have pharma interest or those don’t need any type of distribution or those don’t have qualities to become future customer are not of our interest. Like wise Page likes from persons who are not interested in our products or service or not related to our profession are not useful to us. We need only pharma professionals or who have interest in our products or service and has possibility to become our future customers.

Before promoting or starting advertising campaign at facebook, first we need to choose our audience type and who could be our future potential customers. If we are looking for pharma franchise distributors, we need to promote our page, website or post at targeting persons who could be our future franchise associates. Our target audience could be Medical Representatives and Other Pharma Sales Persons, Distributors/Stockists, Chemists/Pharmacies, Doctors, Doctor’s staff members, Hospitals, and other pharma professionals etc.

If we want to get most of from our facebook campaign then we need to target these communities only. Along with interest type promotion, we also need to set geography of campaign. Suppose we need parties or distributors from South India then we have to set location and geography of our campaign to get most of from lowest budget as possible. Until we set-up target audience base campaign, we can’t find benefits from Facebook advertisement. Without homework it will be waste of money.

For starting Facebook Advertisement Campaign, following step will be involved. Other then this Facebook also give boosting option frequently while we post, add website or scroll down to our feeds as showing in above two images.

Step 1: Visit at own Facebook Page. For example:
Step 2: Click at Promote. Promote option is available at Facebook Page as shown in above two image and below image:

Step 3: A pop-up showing How would you like to grow your business will open. Choose best option we want to start promotion. Click at promote your page to get more likes and engagements. Click at Get more people to contact to get click at call to action button which could be set-up according to individual need. Click at Get more website visitors to promote company/organisational website so people reach directly to company website by clicking at ad link.

Step 4: Change Ad Creative like Wording, Images, re positioning image etc.

Step 5: Audience Setting. Most crucial Step. Right audience selection can build a brand whereas wrong audience type can result in waste of time and money. Choose carefully audience section.

Step 6: Set-up budget and duration of your Ad. First we should start with lesser amount of money. Gradually we can increase money and duration also.

Step 7: Click at Promote Button. It will ask to add money, credit card and other options for paying for advertisement at Facebook. Add money or use credit card to pay to Facebook and Ad will be submitted for review. If Ad get approval then it will start to show in users news Feed.

Hope above information is helpful to you…

For any query and suggestion, mail us at

Main Social Media Powerful Marketing Tools are: