PROCESS OF PHARMA FRANCHISE BUSINESS

What is a Pharma Franchise?

Pharma Franchise is an agreement between a Pharmaceutical Company and a Pharmaceutical Individual or a Distributor who is authorized by the Company to use its Products, Brand names, Practices etc. In this agreement the Pharmaceutical Company issues a Monopoly letter to the assigned Individual or Distributor authorizing him the only channel partner of the company in the said territory (District & State).

What is Monopoly Rights?

In terms of Territory or Geographic distribution Monopoly rights are given a to a specific Individual or a Distributor who is authorized by the Company for sale of goods and services in the assigned Territory or Geography. In Pharma Franchise assigning Monopoly Rights to a particular Individual or a Distributor is done by a Pharmaceutical Company to ensure the sale of its products in a desired manner.

What is a Drug License Number?

In order to do a Pharmaceutical business, one must acquire a drug license which is issued by the Control Drugs Standard Control Organization and State Drugs Standard Control Organization. Normally an Individual is granted two types of Drug License – Wholesale and Retail. A Wholesale license is generally issued to an Individual who wants to work as a Stockist or a Distributor covering a wide territory in a specific state. A Retail license is issued to an Individual who wants to work as a Chemist and is in direct contact with the end consumer of medicines.

Promotional Material

In order to perform Sales Activities different Promotional Materials are used by the Medical Representatives such as Visual Aids, Product Cards Reminder Cards, LBLs, Notepads, Pens etc. These tools are used at the time of Visit to different Doctors and Chemists. Some Pharmaceutical Companies provide the promotional materials free of cost to their customers. They are one of the most effective mediums of marketing in the Pharmaceutical Industry.

What are the best Manufacturing Standards (WHO-GMP)?

In the field of Manufacturing, it is very important that the Quality of different Medicines should be as per the pre-defined standards. Different agencies have set up guidelines on how a manufacturing unit should operate. Such guidelines are used differently in different countries such as GMP, WHO-GMP, Eu-GMP, US-FDA etc. These guidelines usually put emphasis on total size of the unit with pre-defined space for different departments, proper air conditioning along with Air Handling Units, a dedicated research and testing laboratory along with Quality Assurance and Quality Control Departments, etc.