Types of Pharma Companies in India – A Complete Guide

India’s pharmaceutical industry is one of the largest and fastest-growing in the world. It not only serves domestic consumers but also contributes to providing global consumers with access to affordable and effective drugs. Different types of pharma companies operate to produce general drugs to life-saving vaccines. Our country’s huge role in global healthcare has made us achieve the title of the pharmacy of the world. Today, we export high-quality medicines products to more than 20 countries worldwide.

However, not all pharmaceutical companies in India are the same, as some focus on discovering new drugs, while others have expertise in manufacturing. By understanding the different types of pharma companies, you can choose the right partner for your business and keep delivering safe medicines to patients. Keep reading to explore the major types of pharma companies in the country and their roles in the healthcare industry.

Major Types of Pharma Companies in India

Several types of pharma companies in India operate in the industry, and each one has a different role. Some focus on discovering new medicines to make sure consumers get them at affordable prices, while others make sure these are distributed on time and reach the patients.

Here are the seven common types that will help you understand how the pharma industry works:

1. Brand Developers

These pharma companies in India produce medicines under their own brand names. They actively invest in research and product development to create new medicines. After discovering a new drug, they seek patents to protect their investment and gain the right to market that drug legally. These pharma companies often handle the entire process, from research and development to commercial-scale production to market their brand-name medicines. They promote the features and benefits of their medicines to healthcare professionals, like doctors and patients. Sun Pharma and Cipla are leading brand developers in India with a strong brand reputation. 

2. Generic Medicine Companies

These pharmaceutical companies in India produce medicines that work the same as branded drugs but are sold to consumers at lower prices once their patents expire. In simpler words, they produce medicine once the patent of a branded drug ends, and play an important role in making healthcare affordable not only in India but also in other countries around the world. As they don’t need to invest in research and development, their medicines are cheaper and easily available. These sign legal contracts with brand developers to produce cheap generic versions of their branded medicines. Aurobindo Pharma and Abbott Laboratories are some leading companies in India’s pharma sector under this segment. 

3. Research and Development

Among the types of pharma company in India, R&D companies mainly focus on discovering new drugs, vaccines, and improved treatments. They work to create advanced future medicines and significantly contribute to the global healthcare sector. In simpler words, we can understand that without these companies, innovation is not possible in the pharma industry. Their primary role is to improve formulation in areas like biopharma and customized healthcare. Dr. Reddy’s Laboratories Ltd. and Mankind Pharma are major players in India under this segment. 

4. Pharma Manufacturing Companies

These companies are mainly responsible for large-scale medicine production. They follow strict GMP guidelines to make sure the medicines they produce are safe and effective, and meet the required domestic and international demands. They possess the infrastructure, equipment, and team required to conduct manufacturing operations at a commercial scale smoothly and in compliance with necessary guidelines. 

They actively invest in advanced production facilities to make sure they always produce high-quality medicines. In simpler words, these pharma companies produce drugs that other businesses market and distribute. They can operate for a single company with in-house manufacturing facilities or serve as a third party pharma manufacturer in India, offering services to other pharma brands. Medella Softgel is a leading name in this segment and is known for its strong manufacturing capabilities. 

5. Pharma Marketing

Unlike the companies that offer third party manufacturing pharma services, these focus on promoting and selling medicines rather than making them. They partner with other pharma businesses and inform healthcare professionals and patients about the benefits and uses of drugs. They build a network with doctors, hospitals, and chemists to expand the reach of their medicines. Generally, they perform market research to understand the needs of healthcare professionals and consumers. 

6. Pharma Distribution

The main function of pharma distributors is to make sure that the drugs and other healthcare products reach their final destinations. They offer medication distribution services from manufacturers to end-users like pharmacies and hospitals, ensuring patients have access to treatment. They work with original pharma manufacturers and various healthcare providers and offer stock management and delivery services while complying with quality standards. In addition to delivery, they also provide local marketing and promotional services. Stockists and wholesalers are some types of pharmaceutical companies in India under this category. So, the main role of these companies is to ensure the availability of required medicines to end users. 

7. Pharma Retail

This segment under the types of pharma companies in India includes chemist shops, pharmacies, medical stores, and others. Their main role is to make sure the pharma products are available to the public. As more consumers prefer online services, the e-pharmacy business model is becoming popular under the pharma retail category. From medicines to OTC products and medical devices, they sell different types of products directly to consumers. 

Specialized Pharma Companies in India

Besides the above-discussed main types of pharma companies, some specialized businesses contribute to the healthcare sector,

Which are:

1. CRAMS (Contract Research & Manufacturing Services)

These service providers offer outsourced research, development, and manufacturing support to pharma and biotech companies. This means they perform special tasks for their clients as external partners. From early-stage drug discovery to preclinical and clinical testing and large-scale commercial production of drugs and APIs, they handle everything. Other businesses in the healthcare sector can invest in their contract or third party manufacturing pharma services to save costs and speed up the drug development process. 

2. API Manufacturers (Active Pharmaceutical Ingredient)

As the name suggests, these pharma companies produce the active components or the raw materials used in drug formulation. Their role is very important for the supply chain, as no medicine can be produced without APIs. They can produce APIs through chemical processes and from living organisms using biotechnology. They make sure APIs meeting necessary quality and safety standards are manufactured, as this directly affects the overall effectiveness of the drugs. 

3. OTC Drug Manufacturers (Over-the-Counter)

These companies produce medicines that can be bought without a doctor’s prescription, like vitamins, painkillers, and cough syrups. In simple words, they make medicines for minor ailments available to consumers. They focus on developing safe and effective medicines, and play a major role in making healthcare more affordable for the public. 

4. Biopharmaceutical Companies

These companies mainly focus on producing advanced treatments, like biological medicines, vaccines, and other therapies. We can consider that they represent the innovative side of the pharmaceutical companies in India. They make use of biotechnology and genetic engineering to develop treatments for various diseases.

Pharma Companies Shape Better Healthcare

The Indian pharma industry is vast, and several types of pharma companies operate in it, playing a unique role in making safe and affordable medicines accessible to consumers. From brand developers to pharma retail businesses, every segment contributes to the local and global healthcare system. If you’re planning to start a business in the pharma sector, selecting the right partner is important. 

Medella Softgel is a top-rated service provider of third party pharma manufacturing in India, and has expertise in high-quality softgel formulations. We follow strict GMP and quality guidelines, and have modern facilities and a highly skilled team. We offer customized third-party pharma services at reasonable prices and ensure timely delivery and growth of our clients. Choose us as your trusted partner, and we’ll help you launch safe and effective medicines under your brand names. 

Also Read: What is a CDMO Pharma & Why It Matters in Pharma Industry?