How to Start a Pharma Company: Complete Process – The Indian Pharmaceutical Sector is emerging as a global leader. This pharmaceutical sector plays a very important role as the major GDP contributor to India’s economy while generating high-profit revenue. With this rise, launching your own Pharma Company seems like a great option. However, we have to keep in mind that starting a pharmaceutical business is not an easy task and requires lots of consideration, knowledge, and prior experience. Are you also someone, who envisions yourself as a Pharma tycoon and wants to begin a business in this impactful industry? Then your wish has been granted. Following this blog, we will provide you with a detailed understanding of How to Start a Pharma Company: Complete Process to help you succeed in this venture.
The high prevalence of various health conditions is igniting the growth of the Indian Pharmaceutical sector. This dynamic industry is supported by many ventures whether it’s export, manufacturing, distribution, or others. According to recent reports, the Indian Pharmaceutical sector is anticipated to reach US$ 130 billion by the year 2030. This prediction is leading to a higher preference for starting a pharma company among business seekers.
Starting your own pharmaceutical company is a quite diverse business model with great scope. Starting your own company takes a lot of time, energy, and money with a lot of consideration regarding expertise, business plan, and regulatory knowledge. Every country has its regulations for the pharmaceutical industry in terms of import, production, distribution, and sale of medications and cosmetics. In India, all these are governed by the Drug and Cosmetic Act and Rules.
How to Start a Pharma Company: Complete Process
Starting a pharma company offers lucrative benefits with great profits, high return on investments, and fewer risk factors. But like every other business venture, it also requires a lot of consideration, strategy planning, and essential knowledge. You need to be fully aware of all requirements including eligibility, experience, expenses, legal requirements, and others, Knowing all these ins and outs of the process will help you make your journey smoother. So, tighten your seat belts as we begin the journey to understand “How to Start a Pharma Company: Complete Process”. So, Let’s begin.
1. Complete Business Research and Business Ideas –
The first step is to conduct deep research regarding the business venture you are going to handle. Get to know the current market trends, public demand, key players, and competition. This process will help you implement an effective business plan and to fill every industry gap. In addition, this help will help you identify unmet needs within the healthcare system. Make sure to direct your research and development strategy after a thorough consideration of emerging technologies. You can carry out your research through insightful industry reports, academic journals, the latest industry news, and thorough online portals, but make sure you get reliable and credible information.
2. Implement a Hard-Hitting Business Plan –
Once you get an idea of your business, the next step is to start shaping your business ideas. In other words, make a step-to-step detailed business plan with a special focus on the startup company’s goal and vision. Begin with market analysis, the company’s management system, products & services you’ll handle, customer segmentation, marketing plan, and logistics.
3. Assess Upfront Expenses and Find a Funding Source –
Funding is the most essential requirement to begin any business venture. You need to understand the upfront expenses that you might need to spend in terms of infrastructural costs, facility, worker salaries, R&D, and software costs. Once you get to know how much funding your company needs, you need to collect that funding to begin through self-funding, bank loans, or different sources like academic partners, angel investors, venture capitalists, or other pharmaceutical companies.
4. Compliance With all Regulatory Affairs –
This is another important step for starting a pharmaceutical company. This step can be a bit hectic. Adhering to all quality or legal standards ensures that your company is ethical and safe to win the trust of the customers and clients. So let’s go through all the legal requirements that need to be filled.
Drug License
Goods and Service Tax Identification Number
FSSAI Lincense or registration
FDA License or registration
WHO-GMP
ISO Certification
Company or firm registration
Trademark registration
5. Build a Strong Team –
Managing every step by your selves is a very tedious task so hiring the best people can make your work very easy and efficient which will help you grow your business. Focus on quality hiring instead of quantity hiring. The appointed professionals should be best in what they do whether it is management, production, distribution, inventory, R&D, sales, and chain management. You might need a team of pharmacists, scientists, technicians, management executives, lawyers, accountants, engineers, system analysts, and other specialists.
6. Location of Setup –
Choosing an appropriate location is also very essential for starting a [pharmacy company as it is one of the factors deciding the potential of your business. Make sure the location has enough access to skilled labor capital, a great supply of raw materials, and other resources. The location should have enough space for setting up the infrastructure equipped with all requirements with a great hygienic and productive atmosphere.
7. Production Details –
Producing a great quality product is the main factor deciding the success of this business venture. So make sure you achieve to do so. Pharmaceutical firms can either set up independent units or source vendors to manufacture their products through Third-party or contract manufacturing. The manufactured product must be identical in dosage, strength, route of administration, performance, quality, and usage. Every newly manufactured drug needs to undergo clinical trial tests to get approval from the Central Drugs Standard Control Organization.
8. Marketing and Sales –
Building a strong and reliable connection is very crucial for marketing your product in the market. Partner with healthcare professionals like doctors, druggists, or pharmacists to distribute and sell your products. You can also use product samples as promotional tools to stand out among the potential competition. You can also supply brochures, mugs, notepads, calendars, pens, and bags as a marketing tool. Do not make any false claims or exaggerate your product benefits, which can lead to a negative impact on your customer base. Constantly communicate with the network of providers and give them any new data, including post-launch data, indication of the performance of your products, name-brand or generic alternatives.
9. Scaling Your Pharmaceuticals Bussiness –
Make sure you provide the same high-quality watch product. Make sure to get feedback regarding your services to fill every gap between your and the user’s satisfaction. Make the right move to be at the top among others while aligning your team goals with the company mission or vision and implementing essential business strategies for constant improvements.
Conclusion
How to Start a Pharma Company: Complete Process is a very common question among many business seekers.Starting a pharma company is a challenging task but once you understand the right requirements, resources, business plan, legal documents, and the people assisting you it can be made easy.
FAQs Regarding How to Start a Pharma Company: Complete Process
Question 1. What are the different types of costs required to start a pharma company?
Answer 1. The overall costs required to start a pharma company can be divided into 3 major types.
Fixed Investment – These are one-time investments usually on fixed assets like land, buildings, officers, vehicles, machinery, and equipment.
Working Capital Investments – These are the liquid assets like salaries, raw materials, marketing, promotional costs, etc.
Inventory investment – These are the third form of investment essential for product and stock availability and usually depends on how many products you plan to produce.
Question 2. What are the eligibility criteria for starting a pharma company in India?
Answer 2. The interested individual must possess the following qualities to be eligible for starting a pharma company.
Pharmacists having State Pharmacy Council Registration
A Graduation in Pharmacy, chemistry, or a related field
A year of experience with a wholesale drug-licensed company
Question 3. What is the list of documents required to start a pharma company?
Answer 3. You need to acquire the listed documents to start a pharma company.
Copy of bank Challan or fee receipt
Staff details
Blueprint or layout plan
Rent agreement to prove the land ownership
Bill of the purchased equipment and machinery
Partnership deed, MOA, and AOA
Details regarding authorized partners
NOC and Permission from the state pollution control department
Loan license letter
NOC from Municipal corporation
DCGI clearance
Question 4. What are the different types of pharmaceutical company firms?
Answer 4. A pharmaceutical company firm can be of the following type.
Private limited company– This type is run by a group of people privately.
Limited Liability Partnership (LLP)– This type is quite similar to a partnership firm but has the benefits of a company. It is established by 2 or more partners.
Public limited company– This type has limited liability, and its shares can be traded on stock exchanges.
One-Person Company (OPC)– This type is established by a single individual and has limited liability and perpetual succession.
Indian subsidiary– When a foreign company wants to run its business in India.
Question 5. Is it profitable to start a Pharma company in India?
Answer 5. Staring a pharma company opens a door full of opportunities with assured profits and high profit margins. With a great return on investment, this pharma venture is attracting many business seekers by giving them a chance to be a part of this field.
