How to start Pharma Marketing Company?

Query: 

I am a doctor by profession and I have been working in pharma sector for the past 5 years. I am interested in starting up a new marketing company with a 3rd party GMP certified manufacturer. I am looking forward to your help in resolving few queries of mine. I have around 2000sq ft of space available at my residence which can operate as my office location and warehouse at least initially. I hope you could possibly help with my queries.

Query:1

Are there any benefits (financial or non-financial) under any schemes of Govt of India? (eg START UP INDIA)

Query: 2

What are the mandatory documents/clearances required to initiate a company

Query: 3

What is the minimum capital required in INR?

Response:

Query 1: Most of scheme in Start-UP India is associated with Manufacturing and Service Sector. In marketing company, this is not going to help you more…

Query 2: For Pharma marketing Company following licenses is mainly required:

Wholesale Drug License

GST number

Company Registration (Voluntary for Proprietorship Firms)

Query3: As we have discussed in our article: How much investment is required to start Pharma Company?, there is no fixed capital investment required. It varies according to factors like number of products, cost of products, marketing type, your experience in pharma sector etc.

Hope above information is helpful to you…

 

What does it mean by Manufacturing Date, Expiry Date, Batch Number, Finished Product?

Lot or Batch:

Batch or lot means a quantity of any product in dosage form, a raw material or a packaging material, homogeneous within specified limits, constituting all or part of a single batch and identified by a distinctive lot number which appears on the label of the finished product;

Lot Number or Batch Number:

Lot number or batch number means a distinctive number provided to a lot or batch.

Expiry Date:

Expiry Date is a date mentioned at label in form of a year and month after that it is not recommended to consume a medicine or health product. It is the date till a medicine or a health product will maintain its purity and physical characteristicks and its medicinal ingredient maintain its efficacy and potency as indicated or prescribed.

Manufacturing Date:

Manufacturing Date is date mentioned at label in a form of a year and month at which a medicine or health products is packed in its finished product form.

Finished Product:

Finished Product means a medicine or health product packed in final forma and ready for use and dispatch after completing all quality measures and specification.

Hope above information is helpful to you…

Pharmaceutical and Ayurvedic Franchise/Pcd Profit Margin, PTR, PTS

Query:

I want to start PCD Pharma business, I have completed all legal formalities like drug licence, Goods ang Service Tax, and all. But I am unable to understand how it works means what is price to retailers, price to wholesaler’s, how margin is calculated etc. can you please help me for the same?

Response:

PCD/Franchise model works as ethical marketing. Only difference is that company doesn’t involve in direct marketing but appoint a pcd distributor or franchise to market its product and provide goods at net price basis and provides a handsome margin to fulfill all basic need of marketing and sales promotion. Read in Detail about franchise/Pcd Model and how it works here

You need to fix price to retailer and price to stockist/wholesaler as practicing in your area like 20%, 18%, 10% 8% etc. How much margin is big pharma companies providing to retailers and wholesalers. You can calculate accordingly. You can learn calculating Price to retailer, price to stockist and Maximum retail price by clicking here
Margin in pcd business is calculated by including all expenses i.e. retailer margin, stockist margin, marketing and promotional expenses, tour expenses etc.
Suppose Net Rate: N
MRP: M
Retailer Margin: R
Stockist Margin: S
Expenses and Commissions: E
Profit Margin will be calculated by: M-R-S-E-N
 Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Whether to take drug licence in all states for Starting Pharma Marketing Company?

Query:

 

What to start pharma marketing company, kindly let me know whether I need to take drug licence in all states or some other way to do this? Please confirm whether I need to take wholesale license or distributor license? Please confirm how to get pharma Company auditor ? Please confirm whether I need to take drug license or wholesale/ distributor license or both at once? Thank you in advance Please contact me and reply to my queries on my email.

Response:
For starting Pharmaceutical Marketing Company, you can read our article: How to Start Pharmaceutical Company?
You will need to take drug license at premises where you are stocking, receiving, billing and dispatching medicines and drugs. In other states and districts, you can appoint distributors who have drug license. Wholesaler and distributor license are same. You will need to take wholesale drug license for starting pharma marketing company. You will not need of pharma company auditor in start. As your sale will increase, you can take service of auditor.
Related Articles:

Meaning of IP/BP/USP | Licenses Required For Selling Over the Counter Products

Query:

We are into Processed Food product business and operating under private our private brand.No we are looking to foray into OTC-Healthcare segment specifically with Antacids,Pain Relievers Gel/Spray & Vitamin tablet.So going through internet for a query whether Above mentioned products requires any type of wholesale allopathy drug license because we want to develop brand with allopathy formulations. This was the blog we came across and it has mentioned something about IP/BP/USP meaning.

Q1)Now we want to exactly understand what type of Medicines would not require Allopathy Drug License?
Q2) Most of the Pain Relieving Gel/Spray has IP & BP after ingredients,so will we be able to market that with a DL?
If you can please revert us with proper guidance or where can we get proper information regarding the products to be classified as OTC or Pharmaceutical preparation we would be grateful.
Hoping to get revert ASAP.
Response:
  • IP stand For Indian Pharmacopoeia
  • BP stand for British Pharmacopoeia
  • USP stand for United State Pharmacopoeia
These are the reference books that contains standard of particular salt/ingredient used for making a medicine. A medicine label must show ingredient’s reference book standard which is complied by ingredient.  This is also used for differentiating few products that are manufactured in Medicine as well as Food Supplements. Now come to your questions
Q1)Now we want to exactly understand what type of Medicines would not require Allopathy Drug License?

Answer: All type of medicines (whether it is prescription or Over the Counter OTC) require allopathic drug license. No medicine can’t be sell out without drug license.

Q2) Most of the Pain Relieving Gel/Spray has IP & BP after ingredients,so will we be able to market that with a DL?
Ans: All pain relieving gel/spray which has IP/BP after ingredient can’t be sell without drug license. You have to take drug license before proceeding in this matter.
Hope above information is useful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to start Cosmetic Marketing Company and Sell Products Online?

You can start Cosmetic products Company in Two ways:

  • Cosmetic Products Marketing Company
  • Cosmetic Products Manufacturing Company

About cosmetic products manufacturing company, we have discussed in our article: How to start cosmetic product manufacturing unit?

In this article, we will discuss about how to start cosmetic marketing company. For selling and purchasing of cosmetic product, No Need of Drug License. You can register your company and get manufactured your product at third party manufacturing, contract manufacturing or loan license basis and start marketing of cosmetic products.

 Step wise Procedure to Start Cosmetic Marketing Company:

For Cosmetic Products marketing Company, company has to deal in sales and purchase of cosmetics only. For selling and purchasing of cosmetics, no drug license is required. One can get manufactured his brand name cosmetic products from cosmetic manufactured company.

Procedure:

How to sell Online?

For selling online, first requirement is Goods and Service tax Number. You can sell in local market without GSTN if your turnover is less than 20 lakh rupees but for online selling you will need of GSTN to register your firm with any online websites ( like amazon, flipcart, snapdeal etc) for selling your cosmetic products.

First you need to make a seller account at any online selling website. Add your product and inventory to list your product in specific class at which your product fall under. You need to provide your GSTN, PAN and account number for creating a seller account.

After making seller account and listing your product at online selling portals, you can start selling your products online.

Hope above information is useful to you…

You can mail us at pharmafranchiseehelp@gmail.com for any query and suggestion…

 

What is Clinical Trial, New Drug, Cosmetic and Medical Device?

First we will discuss about meaning and definition of clinical trail. After that we will discuss about why these are compulsory to conduct before manufacturing, sale, distribute and market a new drug.

What is Clinical Trial?

Clinical Trial is a process of systematic study or bioavailability or bioequivalence study of new drug or investigational new drug or new cosmetic or new medical device in or on human participants to find out whether it is safe and effective for use of human or not.

According to Drug and Cosmetic Act:

Clinical Trial” means

(i) In respect of drugs, any systematic study of new drug or investigational
new drug or bioavailability or bioequivalence study of any new drug in
human participants to generate data for discovering or verifying its clinical,
pharmacological, including pharmacodynamic and pharmacokinetic, or
adverse effects with the objective of determining safety, efficacy or tolerance
of the drug;
(ii) In respect of cosmetics, the systematic study, including dermatological
study of any new cosmetic on human participants to generate data for
discovering or verifying its adverse effects with the objective of determining
safety, efficacy or tolerance of the cosmetic;
(iii) In respect of medical devices, the systematic clinical investigation or
study of an investigational medical device or a new medical device in, or on
human participants to assess the safety or performance or effectiveness of the medical device;

“ A New Drug” means-
(i) A drug, including bulk drug substance, which has not been used in
the country to any significant extent under the specified conditions,
recommended or suggested in the labelling thereof and has not been
recognised as effective and safe by the Central Licensing Authority
for the expected claims and its limited use, if any;
(ii) A drug approved by the Central Licensing Authority for certain
claims, which is proposed to be marketed with modified or new
claims, namely, indications, route of administration, dosage and
dosage form, including sustained release and novel drug delivery
systems;
(iii) A fixed dose combination of two or more drugs, individually
approved earlier for certain claims, which are proposed to be
combined for the first time in a fixed ratio, or if the ratio of
ingredients in a marketed combination is proposed to be changed,
with certain claims, namely, indications, route of administration,
dosage, dosage form, including sustained release and novel drug
delivery systems;
(iv) vaccines, recombinant Deoxyribonucleic Acid (r-DNA) derived
products, living modified organisms, monoclonal anti-bodies, stem
cells, gene therapeutic products and xenografts which are intended
to be used as drugs;

“A Investigational New Drug” means

New chemical entity or substance which is under investigation in a clinical trial regarding its safety and efficacy;

“A New Cosmetic” means

Any cosmetic containing ingredients which have not been established as safe for use in cosmetics;

“A New Medical device” means

A device which has not been approved by the Central Licensing Authority;

“A Investigational New Medical Device” means

A new device which is an object of a clinical investigation or research or development involving one or more human participants to determine the safety and the effectiveness of a device

Why Clinical Trials are necessary?

When a research institute or company discover a molecule that may have potency to cure, prevent, treat or provide symptomatic relief against particular illness or disease. First its efficacy and bioavailability or bioequivalence study are tested at animals.

After passing trials at animals, we need to find out its result and side effects at human. So clinical trail has been conducted to find out its actual response at human body.

Phases:

Preclinical Phase: Testing of Drug at non human subjects

Phase 0: Testing of Drug at Healthy Human at 10 people for pharmacokinetic study

Phase I: Testing of drug at 20-100 healthy volunteers for checking dose ranging

Phase II: Testing of drug at 100-300 patients of particular disease to check efficacy and side effects

Phases III: Testing of drug at 300-3000 patients of particular disease to check efficacy, effectiveness and safety.

Phase IV: It is done after marketing of drug to doctor for checking drug use in public for long term effects of drug.

Hope above information is helpful to you….

 

What is Pharmaceutical Packaging? How to start Pharma Packaging and Promotional material Manufacturing?

Pharmaceutical sector is vast sector. Many non pharma businesses also depend at pharmaceutical sector and companies. Pharmaceutical Packaging Material suppliers are one of the important non pharma businesses that are reliable at pharmaceutical companies. Most of pharmaceutical companies outsource its packaging material. Even MNC companies also outsource when it come to packaging material.

Packaging material manufacturing business is more profitable than pharma business. Not only for pharmaceutical sector, same material could be supplied to ayurvedic, herbal, cosmetic, nutraceutical and food-feed supplements companies.

Packaging material manufacturing is a costly project and requires latest machinery and equipment to start. In this article we will discuss about machinery required, technical skills, procedure for printing etc.

Along with packaging material, promotional material is also essential part for pharmaceutical sector. Packaging material supplier also deals in promotional material inputs like visual aids, reminder cards, product cards etc. But few manufacturers manufacture only packaging material and few only manufacturer promotional material/inputs.

What is Packaging material in Pharmaceutical Sector?

Pharmaceutical preparations are used to cover in paper or any other material which contains complete detail about product along with attractive out look like outer box, label, foil etc. Packaging material fulfills two purposes. One it prevents preparation from damage and second it gives attractive look to preparation.

What is promotional inputs in Pharmaceutical Sector?

Promotional inputs are used to promote medicines and generate sale for company. Promotional material also create company brand value. Most commonly used promotional inputs are visual aids, reminder cards, order book , product list etc.

Two type of printing machines are commonly used. One is Digital Printing Machine and Second is Offset Printing Machine. Digital Printing machine is mostly used for preparation of promotional inputs who require in small quantities. This is not generally used for printing of packaging material like box, labels etc.

For printing of pharmaceutical packaging material, offset printing is better way. Mostly printing presses uses offset printing procedure for printing pharma packaging material.

Machinery and Equipment:

  • Offset Printing Machine
  • Digital Printing Machine (Not Compulsory)
  • Printing Down Frame
  • Computer Sets with Printer and Software
  • Software i.e. Coral, Photoshop, MS office, Page Maker etc.
  • Paper cutting machine
  • Binding and Measurement equipment
  • Lamination Machine .i.e. gloss and met lamination
  • Drip off Machine
  • Embossing Machine
  • Paper Creasing
  • Paper Stapler

Raw Material Required:

  • Paper Sheet
  • Card Sheet
  • Aluminium Plate
  • Ink
  • Developer
  • Gum
  • Colors
  • Staple Pins

Technical Skills Required:

Either you or your employee require few technical skills to easily set-up and run a printing press for pharmaceutical packaging material.

  1. Designer: Designers should have good knowledge of Coral Draw, Photoshop, MS Office, Page Maker etc. He should have good innovative, imaginative, creative sense of humor to create new and attractive designs.
  2. Machine Men: Different type of machines require different type of technical skill to run efficiently. Until you will have persons who make sure to print design as it was designed, you can satisfy your clients.

Printing Process:

Printing procedure is a semi automatic process. You need to prepare aluminium plates to print paper in offset printing. In digital printing, no aluminium plate preparation required. We can directly give command of print from computer to print any paper as in case of simple printers.

Process of offset printing is something complex compare to digital printing but offset printed packaging material cost less as compare to digital printed. Below we are discussing process of offset printing.

Make a Design using software we have discussed above. A design may be small or large as per need. But we need to print a sheet of fixed size (19*23′ generally) to prevent process cost and other factors. Suppose we have box design whose size is 5.2*2.3′. Then we have to adjust it at complete sheet by placing number of times to fill complete sheet. We also can use different designs to complete a sheet. This sheet is known as plate.

Now this plate is sent to produce a film using a camera. This film is called negative. Thereafter this negative film and a aluminium plate is put into printing down frame for preset time for printing image of negative film onto aluminium plate which is called positive. After that developer is spread at plate followed by washing with fresh water. By this process matter get printed at aluminium plate automatically.

After that this plate is fitted into printing press. Paper after cutting in proper size is also fed into offset printing press.  The paper is printed as per required design and color.

Investment Required:

Now companies started to ask for latest packaging material like drip off, emboss, die cut packaging. Conventional lamination packaging is going out of market. So there is need of latest machinery to fulfill demand of market. That’s the reason investment for packaging material manufacturer has been increased.

Investment depend at many factors. There are two type of investments required.

  • Fixed Capital Investment
  • Working Capitals

Fixed Capital Investment:

Fixed Capital Investment is calculated by addition of following aspects:

  • Premises and building Cost (if owned)
  • Machinery and Equipment Cost
  • Computer, software and other accessories
  • Plant Set-up etc

Working Capital Investment:

Working capital includes

  • Raw Material
  • Rent (if rented premises)
  • Salary and wages of workers and employees
  • Electricity and water bill
  • Other miscellaneous expenses

Business Plan:

  • Search for premises and plant if you don’t have own
  • Search for investment source if you don’t have own arrangement of money
  • Search for machinery and equipment suppliers
  • Set-up Plant and install machinery and equipment
  • Search for trained employees and workers
  • Search for raw material supplier
  • Take order from pharma companies
  • Start printing packaging material and promotional inputs.

Hope this information is useful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Frequently Asked Question Related to Pharmacy Store in India

In this article, we are going to cover the question which is asked frequently by by pharmacists and Pharmacy owners while opening a Pharmacy or Chemist Shop.  Commonly asked questions are:

  • Am I eligible to give my license after my Pharmacy Education?
  • How many Chemist Shops or Pharmacies I can Open with my License?
  • Can I give my license to more then one Medical Store?
  • Can I pursue Job along with Chemist Shop?
  • Can I open Pharmacy Store with Government Job Pharmacist License?
  • Can one State Pharmacist open medical store in other State? etc
  • Do I need Drug License as I am a Registered Pharmacist?
  • Can’t I get Drug Retail license if I don’t have any pharmacy graduation or diploma.
  • Do I need two drug license One for Wholesale and One for Retail?

For knowing answers of above questions, first we need to know about few technical terms i.e. Retail Drug License, Whole Sale Drug License, Pharmacist, Pharmacist Registration, Pharmacy and Chemist.

Read Related: What does it mean by Compounding, Dispensing, Patient counselling and Pharmaceutical Care?

Retail Drug License: Retail Drug License is a certificate issued by Drug Control Office appointed by state government to conduct sale, purchase, stock, exhibit of medicines and drugs at retail basis under supervision of a registered pharmacist.

Wholesale Drug License: Wholesale Drug License is a certificate issued by Drug Control Office appointed by state government to conduct sale, purchase, stock, exhibit of medicine and drugs at wholesale basis under supervision of a competent person.

Read Related: Difference Between Wholesaler and Retailer

Pharmacist: Pharmacist is a person who has at least diploma, degree and/or doctor of pharmacy qualification.

Registered Pharmacist: Registered Pharmacist is a person who possessed above mentioned qualification and his/her name is registered under State Pharmacy Council as a Pharmacist as per drug and cosmetic act & rules.

Pharmacy and Chemist Shops: These are the name of retail counters of medicines and related substances who possess a retail license and require service of a registered pharmacist.

Read Related: Difference between Pharmacy and Chemist/Druggist?

Most of Pharmacists use word license while communicating about his/her eligibility as a authorized person to conduct operation at Pharmacy and Chemist Shop. Here we want to confirm that its not a license. Its only your registration. License is provided by Drug Control office for opening Retail or wholesale of medicine for that you are eligible as a competent person after your Pharmacy Qualification. Your pharmacy qualification is not a license.

Even without Registration as a Pharmacist under State Pharmacy Council of concern state where you want to pursue your carrier or business, you are not eligible as a authority to conduct all activity in Pharmacy and Chemist Shop. That’s the answer of question number one listed above.

You are not eligible only after your pharmacy education to become competent person for opening pharmacy and chemist shop or pursue your job as a pharmacist until you register your name under state pharmacy council of concern state.

Now come to more questions:

First we want to confirm that you don’t have any license, you have only registration as a pharmacist. When you attach your registration and pharmacy qualification certificates with any retail drug license, that’s mean you are working there as a full time employee.

In simple words, when you give your license (i.e. registration certificate) to any pharmacy or chemist shop, you become his/her full time employee. Full time employee means Eight hour working. According to law, a person can do full time job at only one place. Part time you can do but as a part timer, you can’t be competent person at any other retail shop. That’s mean you can only give your license (i.e. registration) at only one chemist and pharmacy shop.

As a Government Pharmacist, you are a full time pharmacist employee for government, same is applicable here that we discussed above.

Few queries we received from our readers are related to opening pharmacy business in state other than where they are registered as a pharmacist. If you have same query then there is simple method to do it.

A Pharmacist is eligible to register his/her name under any state pharmacy council. You can register your name under concern state pharmacy council where you want to start your own pharmacy business but for that you have to leave registration of previous state pharmacy council before applying for registration in another state pharmacy council register. Without migrating pharmacy registration, you can’t conduct pharmacy business in other states.

Now come to the question asked by our reader about opening retail drug store without having pharmacy education.

Without pharmacist, you can’t get any retail drug license. If you or your partner don’t have any pharmacy qualification and you want to open retail drug store then you need to hire a pharmacist as a full time employee. Some person hire pharmacist at part time basis (In simple word, rent a pharmacist registration) but it is illegal under drug and cosmetic act. A single medicine can’t be dispensed in the absence of pharmacist. A pharmacy and chemist shop should only conduct medicine related business till pharmacist is present there.

If you want to do wholesale and retail drug store in single premises, then you need to apply for wholesale plus retail drug license. Requirements and documents will be same, only space required will need extra.

Hope above information is helpful to you….

For any query and suggestion, you can write us at pharmafranchiseehelp@gmail.com

What is Order Book? Types and how to prepare Order Book?

Order book

As name indicate, Order Book use to note down the order receipt from customer. It is an important accessory carry by sales and marketing professionals in every sector and medical representative, office executives, marketing staffs etc in pharmaceutical sector. It may be manual, printed and/or electronic.

Definition of Order Book:

It is defined as a document in which new orders are entered as received from new customers and/or existing customers.

Important Parts:

It may contain following parts:

Company Details:

  • Name, Address and other details of the Company
  • Logo of the Company
  • Contact Number if necessary

General Details:

  • Order Number
  • Date

Customer Details:

  • Name of Customer with other particulars
  • Stockiest and/or CNF address
  • Station Name
  • Bank
  • Transport
  • GST Number
  • Drug License Number if applicable

Product Details:

  • Serial Number
  • Brand Name of Product
  • Packing
  • Quantity
  • Rate
  • MRP
  • Any other Particulars if any

Footer Section:

  • Signature of Representative
  • Signature of Customer

Types of Order Book:

It can be designed as per business need and parts of order book could be changed as per your need. If you are manufacturing company and take order of third party manufacturing at office level then requirements will be different from order book carry by sales representative in field. Its types and pattern is changeable according to need.

Types of it can be divided according to its

  • Manual
  • Printed
  • Electronic

Manual Order Book:

Many small companies and firms use to write order at any dairy, plain paper or pad etc. These are simple forms of order book and writing down order with all specification of product and quantity.

Printed Order Books:

Make a pattern of order book as per need and print it in form of book for carrying and maintaining easily. These printed Order Books have at least two copies per page. One for customer and second for own record. Number of copies can be more as per need. You can print your it from any printer in formats attached into article linked below:

Download Format

Electronic Order Book:

Now companies and firms start to note down orders in Computers, laptops and other gadgets. Order maintenance through excel sheet and/or software come under electronic order book. Simply you can manage order in Excel Sheet or can purchase any inventory software.

Inventory software can be available as free or as a paid basis. You can purchase or select best suitable inventory software for you as per your need.

Below we will discuss how to make a order book in Excel Format. Excel Order Book may be good option for Office Executives to easily maintain orders of customers, check status of new and previous orders.

Step by Step Demo to make an it in Excel:

You can also download Format for Excel by Following Link: Download Order register Format in Excel

1. Open Excel Sheet

2. Create Work Sheet of Each Customer like Customer 1, Customer 2, and Customer 3 etc. You can create sheet according to number of customer present at you.

3. Index is important to easily navigate to each customer. Prepare a navigation index in above cells as shown in image below. Make it in first sheet and copy and paste to remaining sheets.

4. Make a title bar for description of entries in sheet. Parts of title bar include order number, date, product name, quantity, packing, rate, mrp and status etc.

5. Now give links to navigation index by selecting cell in index as discussed above. Press Click + K. Change link type to Place in the Document and select work sheet of name as shown in image below

6. Repeat the process for each customer in index and you have done.

: Download Format in Excel

 

Advantage of Order Book in excels:

  • Easily Check Pending Orders and Status of Orders
  • Can easily check old dated orders and specifications
  • Time Saving Process

Hope above information is helpful to you…

If you have better idea to prepare order book, you can write us at pharmafranchiseehelp@gmail.com

Sponsored Link: Best Ayurvedic Company in World