business plan of a pharmaceutical company

Pharmaceutical Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a pharmaceutical company? If YES, here is a complete sample pharmaceutical business plan template & feasibility report you can use for FREE .

If you are pharmacist and you are certain that you have a winning formula when it comes to producing effective generic drugs; drugs / medicine that has been tested and proven to meet the requirement for such products, then you should consider launching your own generic pharmaceutical manufacturing company.

It is a business that is still pretty much open for investors to come and compete for the available market in the country you intend launching the business.

A Sample Pharmaceutical Company Business Plan Template

1. industry overview.

The Generic pharmaceutical and medicine manufacturing companies primarily develop prescription and over-the-counter drug products that are used to prevent or treat illnesses in humans or animals.

Generic drugs are produced and distributed without patent protection, and industry operators are not significantly engaged in the research and development of new drugs.

It is important to mention that the generic pharmaceutical manufacturing industry does not include manufacturers of nutritional supplements, cosmetic beauty products or similar products.

All over the world, the pharmaceutical industry is highly regulated. This is so because the devastating effect of fake drugs or drug abuse can’t be quantified.

As a matter of fact, there are several universal laws and regulations that govern the patenting, testing, safety, efficacy and marketing of drugs.

For example, in the united states, new pharmaceutical products must be approved by the Food and Drug Administration (FDA) as being both safe and effective before they can be allowed to go into the market.

Statistics has it that global spending on prescription drugs grew to a whopping sum of $954 billion in 2011 and The United States accounts for more than a third of the global pharmaceutical market, with an estimate of $340 billion in annual sales

The Generic Pharmaceutical Manufacturing Industry is a thriving sector of the economy of countries like India, China, united kingdom , Germany and the United States of America.

Statistics has it that in the united states alone, the industry generates a whooping sum of well over $66 billion annually from more than 1,203 registered and licensed generic pharmaceutical manufacturing companies scattered all around the United States of America.

The industry is responsible for the employment of well over 67,699 people. Experts project the industry to grow at a 4.1 percent annual rate from 2011 to 2016. Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd. have the lion share of the available market in the Generic Pharmaceutical manufacturing industry in the United States of America.

A close study of the Generic Pharmaceutical Manufacturing industry shows that the industry is expanding rapidly. This is due to the demand for the industry’s products by the aging population with more chronic illnesses.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development.

Going forward, the industry revenue growth is expected to outpaced revenue growth for the Brand Name Pharmaceutical Manufacturing industry.

A large number of brand name drugs manufacturers lost patent protection for blockbuster drugs beginning in 2010; demand for generics subsequently grew, as consumers demanded affordable versions of these high-profile products. These trends are expected to continue in the next five years.

A recent report published by IBISWORLD shows that the Generic Pharmaceutical Manufacturing industry has a low level of concentration, with the top four companies accounting for 30.2 percent of industry revenue in 2016.

Having a large operation as a generic manufacturer does not offer the same advantages as it does for brand name producers.

The report further stated that generic drug manufacturers can be smaller because the cost of research and development is significantly lower than it is for brand name companies; however, operators can still benefit from economies of scale through savings on administrative and capital costs.

Moreover, a company’s presence in both generic and brand drug markets can buffer company revenue against volatility in price or demand for any one specific drug.

The bottom line is that; the Generic Pharmaceutical Manufacturing industry is still very much open for new entrant; the competition within the industry is not as stiff as similar industry.

If your product is good, it can gain fair share of the available market in any country or region you intend launching the business.

2. Executive Summary

Harry Tancredo® Pharmaceuticals, LLC is a licensed and standard generic pharmaceutical manufacturing company that will be located in an industrial area in Concord – New Hampshire.

We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of production business we want to run and the facility is easily accessible and we are deliberate about that because we want to facilitate easy movement of raw materials (chemicals and packaging containers) and finished products (drugs / medicines).

Harry Tancredo® Pharmaceuticals, LLC is in the generic pharmaceutical manufacturing industry to engage in developing and producing generic drugs, marketing and distributing generic drugs and gaining regulatory approval for generic drugs.

We will manufacture standard and effective pharmaceutical products such as mental health and lipid regulators, anti diabetics and respiratory, pain and antibacterial, nervous system disorders and antihypertensive, antiulcerants and thyroid, dermatological and hormonal contraceptives, and ADHD and anticoagulants.

We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our pharmaceutical products the opportunity to be part of the success story of our brand.

We are aware that there are several big scale and small scale generic pharmaceutical manufacturing companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our products and brand.

We ensured that our facility is easy to locate and we have mapped out plans to develop a far-reaching distribution network for wholesalers of pharmaceutical products all around Concord – New Hampshire and throughout the United States of America.

Much more than producing quality, effective and safe generic pharmaceutical products, our customer care is going to be second to none.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase any of our product and also to become our loyal customers and ambassadors.

Harry Tancredo® Pharmaceuticals, LLC will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory.

We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them. Harry Tancredo® Pharmaceuticals, LLC is family business that will be owned by Harry Tancredo and his immediate family members.

Harry Tancredo who is the Chief Executive Officer of the Company is Graduate of Pharmacology and he holds a Master’s Degree in Business Management (MBA).

He has well over 12 years of experience working in related industry as a senior production manager prior to starting Harry Tancredo® Pharmaceuticals, LLC. He will be working with a team of professionals to build the business and grow it to enviably height.

3. Our Products and Services

Harry Tancredo® Pharmaceuticals, LLC is going to run a standard and licensed generic pharmaceutical manufacturing company whose products will not only be sold in Hartford – Connecticut but also throughout the United States of America and Canada.

We are in the generic pharmaceutical manufacturing industry to make profits and also to give our customers value for their money.

We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;

• Developing and producing generic drugs
• Marketing and distributing generic drugs
• Gaining regulatory approval for generic drugs
• Mental health and lipid regulators
• Anti-diabetics and respiratory
• Pain and antibacterial
• Nervous system disorders and antihypertensive
• Anti-ulcerants and thyroid
• Dermatological and hormonal contraceptives
• ADHD and anticoagulants

4. Our Mission and Vision Statement

• Our vision is to establish a standard generic pharmaceutical manufacturing Company whose products will be not only be sold in Concord – New Hampshire, but also throughout the United States of America and Canada.
• Our mission is to establish a standard and world class generic pharmaceutical manufacturing Company / brand that in our own capacity will favorably compete with leaders in the industry.
• We want to build a business that will be listed amongst the top 20 generic pharmaceutical manufacturing brands in the United States of America and Canada.

Our Business Structure

Harry Tancredo® Pharmaceuticals, LLC is a business that is established with the aim of competing favorably with other leading generic pharmaceutical product brands in the industry.

This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Production / Plant Manager

Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Machine Operators
• Accountants / Cashiers

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.
• Responsible for overseeing the smooth running of the pharmaceutical production plant
• Part of the team that determines the quantity and quality of pharmaceutical products that are to be produced
• Maps out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the plant meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and factory activities.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of raw materials and packaging materials
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

Production Workers / Machine Operators:

• Responsible for preparing, blending, compounding and packaging pharmaceutical products
• Handle labeling of pharmaceutical products
• Operate machines used in the manufacturing mental health and lipid regulators, ant diabetics and respiratory, pain and antibacterial, nervous system disorders and antihypertensive, antiulcerants and thyroid, dermatological and hormonal contraceptives, and ADHD and anticoagulants
• Assist in packaging and loading pharmaceutical products into distribution trucks
• Assists in loading and unloading pharmaceutical products
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to pharmaceutical stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several generic pharmaceutical manufacturing companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Harry Tancredo® Pharmaceuticals, LLC employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Harry Tancredo® Pharmaceuticals, LLC;

Part of what is going to count as positives for Harry Tancredo® Pharmaceuticals, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art machines and equipment, the wide varieties of pharmaceutical products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new generic pharmaceutical manufacturing company in the United States and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd. et al are already determining the direction of the market both in the United States and in the global market.

• Opportunities:

The opportunities available to generic pharmaceutical manufacturing companies with a wide range of products are enormous. This is due to the fact that almost all Americans and people from all over the world take drugs / medicine for different reasons.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for pharmaceutical products and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face are economic downturn and unfavorable government policies . It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new generic pharmaceutical manufacturing company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

A close study of the trends in the Generic Pharmaceutical Manufacturing industry shows that the industry is expanding rapidly. This is due to the demand for the industry’s products by the aging population with more chronic illnesses.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development. Going forward, the industry revenue growth is expected to outpaced revenue growth for the Brand Name Pharmaceutical Manufacturing industry.

Lastly, the generic pharmaceutical manufacturing industry is the adoption of eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling pharmaceutical products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in developing and producing generic drugs, marketing and distributing generic drugs and gaining regulatory approval for generic drugs. Hence our target markets are;

• Health Facilities
• Pharmaceutical Products Wholesalers
• Retail Pharmacy Stores
• Everybody in our target market location

Our competitive advantage

A close study of the generic pharmaceutical manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other generic pharmaceutical manufacturing companies in New Hampshire and throughout the United States and Canada.

Harry Tancredo® Pharmaceuticals, LLC is launching a standard generic pharmaceutical product brand that will indeed become the preferred choice of residence of Concord – New Hampshire and every city where our generic pharmaceutical product will be retailed.

Part of what is going to count as competitive advantage for Harry Tancredo® Pharmaceuticals, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art pharmaceutical production machines and equipment, the wide varieties of generic pharmaceutical products that we produce our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups generic pharmaceutical manufacturing companies) in the generic pharmaceutical manufacturing industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harry Tancredo® Pharmaceuticals, LLC is established with the aim of maximizing profits in the generic pharmaceutical manufacturing industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of generic pharmaceutical products to a wide range of customers.

Harry Tancredo® Pharmaceuticals, LLC will generate income by selling the following pharmaceutical products;

• Antiulcerants and thyroid

10. Sales Forecast

One thing is assured when it comes to generic pharmaceutical manufacturing company, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Concord – New Hampshire and every city where our generic pharmaceutical products will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the generic pharmaceutical manufacturing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Concord – New Hampshire.

Below is the sales projection for Harry Tancredo® Pharmaceuticals, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale generic pharmaceutical manufacturing company start – ups in the United States;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $550,000
• Third Fiscal Year-: $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing same generic pharmaceutical products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Harry Tancredo® Pharmaceuticals, LLC and also the kind of generic pharmaceutical products we will produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading generic pharmaceutical manufacturing brands in the United States of America and Canada.

We hired experts who have good understanding of the generic pharmaceutical manufacturing industry to help us develop

In other to continue to be in business and grow, we must continue to sell our generic pharmaceutical products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.

In summary, Harry Tancredo® Pharmaceuticals, LLC will adopt the following sales and marketing approach to sell our generic pharmaceutical products;

• Introduce our generic pharmaceutical products brand by sending introductory letters to pharmacy stores, hospitals, residence, pharmaceutical merchants, retailers and other stakeholders in Concord – New Hampshire and other cities both in the United States of America and Canada
• Open our generic pharmaceutical manufacturing company with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our generic pharmaceutical product brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

In spite of the fact that our generic pharmaceutical manufacturing plant is a standard one with a wide range of pharmaceutical products that in few years from now will favorably compete with other leading brands in the industry like Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd.

We will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Harry Tancredo® Pharmaceuticals, LLC.

Harry Tancredo® Pharmaceuticals, LLC has a long-term plan of distributing our generic pharmaceutical products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Concord – New Hampshire before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Harry Tancredo® Pharmaceuticals, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our generic pharmaceutical product brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

When it comes to pricing for products such as generic pharmaceutical products, there are two sides to the coin. We are aware of the pricing trend in the generic pharmaceutical manufacturing industry which is why we have decided to produce various sizes of pharmaceutical products as regulated by the industry.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various generic pharmaceutical product brands in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our generic pharmaceutical product brands.

• Payment Options

The payment policy adopted by Harry Tancredo® Pharmaceuticals, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harry Tancredo® Pharmaceuticals, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for generic pharmaceutical product purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

Starting a standard generic pharmaceutical manufacturing company is indeed a capital – intensive business. This is so because the amount required in setting up a generic pharmaceutical production plant is not a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a facility and also in purchasing mixing, blending, compounding and packaging equipment.

Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, purchasing raw materials, paying of your employees and utility bills. These are the key areas where we will spend our start – up capital;

• The total fee for registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Harry Tancredo® Pharmaceuticals, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring Business Consultant – $2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a standard generic pharmaceutical production plant – $100,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for start-up inventory (mixing, blending, compounding and packaging equipment, raw materials, and packaging materials et al) – $80,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $60,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our generic pharmaceutical manufacturing company in Concord – New Hampshire. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funds / Startup Capital for Harry Tancredo® Pharmaceuticals, LLC

Harry Tancredo® Pharmaceuticals, LLC is a family business that is owned and financed by Harry Tancredo and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of any business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Harry Tancredo® Pharmaceuticals, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our generic pharmaceutical products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harry Tancredo® Pharmaceuticals, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard generic pharmaceutical production plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of the Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – pharmacy stores, hospitals, pharmaceutical products wholesale suppliers / merchants: In Progress

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Pharmacy Business Plan PDF Example

• March 19, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful pharmacy. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your pharmacy’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a pharmacy business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the healthcare industry, this guide, complete with a business plan example, lays the groundwork for turning your pharmacy concept into reality. Let’s dive in!

Our pharmacy business plan is constructed to encompass all critical facets required for a robust strategy. It details the pharmacy’s operational processes, marketing approaches, market conditions, competitive landscape, management hierarchy, and financial predictions.

• Executive Summary : Provides a concise overview of the Pharmacy’s business concept, market analysis , management team, and financial strategy, setting the stage for the detailed plan.
• Pharmacy & Location: Details the pharmacy’s layout, amenities, and the strategic significance of its location to attract customers.
• Services & Pricing: Lists the pharmaceutical services and products available, including pricing strategy and how it caters to the target market .
• Key Stats: Shares important statistics on the pharmacy industry, highlighting the market size and growth trends.
• Key Trends: Discusses current trends affecting the pharmaceutical industry and how the Pharmacy aligns with these trends.
• Key Competitors : Evaluates main competitors in the vicinity, showcasing the Pharmacy’s unique advantages.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis tailored to the Pharmacy.
• Marketing Plan : Outlines strategies for marketing, customer engagement, and loyalty building.
• Timeline : Key milestones and objectives from the Pharmacy’s startup phase through its first year of operation.
• Management: Information about the management team, their expertise, and their roles in the Pharmacy.
• Financial Plan: Projects the Pharmacy’s financial performance over the next five years, including revenue, profit margins, and significant expenses.

Pharmacy Business Plan

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Executive Summary

The Executive Summary introduces your pharmacy’s business plan, providing a concise overview of your pharmacy and its offerings. It should detail your market positioning, the range of pharmaceutical products and health services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your pharmacy will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your pharmacy’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the pharmacy’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your pharmacy’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Pharmacy, the Business Overview section can be concisely divided into 2 main aspects:

Pharmacy & Location

Briefly describe the pharmacy’s physical setup, focusing on its layout, ease of navigation, and the welcoming atmosphere for customers. Mention the pharmacy’s location, highlighting its accessibility and convenience to customers, such as proximity to medical centers, residential areas, or ease of parking. Explain why this location is strategically chosen to attract your target customer base.

Products & Pricing

Detail the range of products and services offered, from prescription medications and over-the-counter drugs to health supplements and wellness products. Include any specialized services such as pharmaceutical consultations, immunizations, health screenings, or medication management programs. Outline your pricing strategy, ensuring it is competitive yet reflects the quality and value of the products and services offered. Highlight any discount programs, insurance collaborations, or loyalty schemes that provide added value to your customers, encouraging repeat visits and customer loyalty.

Make sure to cover here _ Pharmacy & Location _ Products & Prices

Market Overview

Industry size & growth.

In the Market Overview of your pharmacy business plan, start by examining the size of the pharmaceutical industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in health and wellness products, the growth in demand for prescription and over-the-counter medications, and the expansion of pharmacy services like immunizations and health screenings. For example, highlight the demand for pharmacies that offer comprehensive health management solutions and personalized medication consultations, alongside the rising popularity of digital health services and telepharmacy.

Key Competitors

Then, consider the competitive landscape, which includes a range of pharmacies from large chains to local independents, as well as online pharmacies and health tech startups. For example, emphasize what makes your pharmacy distinctive, whether it’s through superior customer service, a wide range of health and wellness products, or specialization in certain medical areas. This section will help articulate the demand for pharmacy services, the competitive environment, and how your pharmacy is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the pharmacy , highlighting Strengths (such as a comprehensive range of health products and services, knowledgeable pharmacists), Weaknesses (including potential inventory management issues or strong competition from large chains), Opportunities (for example, an increasing focus on healthcare and preventive measures in the community), and Threats (such as regulatory changes or online pharmacies cutting into market share).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted health and wellness campaigns, promotional discounts on wellness products, an engaging online presence that includes health tips and advice, and involvement in community health events.

Finally, create a detailed timeline that outlines critical milestones for the pharmacy’s opening, marketing initiatives, customer base growth, and potential service expansion objectives, ensuring the business progresses with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the pharmacy’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the pharmacy toward its financial and operational goals.

For your pharmacy business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your pharmacy’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your pharmacy business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Pharmacy Business Plan

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The Discount Pharmacy

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People need to be able to buy prescriptions at reduced prices. We make that possible by carefully maintaining efficiencies in our operations. So we can target a specific segment of the market – those customers who pay for their prescription medications themselves. They are poor, they are sick, they deserve the same care as those who can afford healthcare and full price prescriptions. 

The Discount Pharmacy’s mission is to provide our customers with the best prices for their prescription medications. Our convenience and services will exceed the expectations of our customers.

The Discount Pharmacy’s target market consists of two different groups, local customers or walk-ins, and mail order customers.

Competition

Competition takes many different forms in the pharmacy industry. They are: chain pharmacies, local pharmacies, mail in pharmacies, canadian pharmacies. 

The Discount Pharmacy’s we have superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.

Expectations

Costs will be minimized by maintaining only one pharmacist and filling the void with pharmaceutical techs. We expect to reach profitability by our third year and will generate substantial sales by year three

Financial Highlights by Year

Financing needed.

We will need $115,000 to start, we will be able to pay the investment back at the end of year 4

Problem & Solution

Problem worth solving.

People need to be able to buy prescriptions at accessible prices. We make that possible by carefully maintaining efficiencies in our operations. So we can target a specific segment of the market – those customers who pay for their prescription medications themselves. They are poor, they are sick, they deserve the same care as those who can afford healthcare and full price prescriptions. 

Our Solution

The Discount Pharmacy’s main goal is to provide prescription medications for our customers at the lowest prices on the market. We will be able to sell prescriptions at reduced prices by carefully maintaining efficiencies in our operations and by targeting a specific segment of the market – those customers who pay for their prescription medications themselves. By focusing on this segment it gives us additional efficiencies – we avoid disruptions in cash flow often associated with insurance payments and we can eliminate unnecessary services for the type of knowledgeable, repeat customer taking maintenance-type medication.

The Discount Pharmacy will operate from one store that will serve both mail order customers and those who visit in person. We will thrive by employing friendly and knowledgeable personnel, which, along with our great prices, will drive the repeat business that we will rely upon. We only expect that as the price of medication continues to skyrocket, The Discount Pharmacy will appeal more and more to the customer’s sense of value and convenience.

Target Market

Market size & segments.

The Discount Pharmacy will seek to attract two different groups of customers and will thus have two strategies to attract them.

We anticipate that by far our largest group of customers will be those who order through the mail. These customers will be targeted through an advertising campaign in magazines and newsletters that have an older (>55) audience who regularly need medication and are aware in advance of their needs. For example, one of the main advertising vehicles will be the A.A.R.P monthly newsletter.

Walk-in customers will be targeted through advertisements in the local paper, "The Oregonian."  Ads will raise awareness for the The Discount Pharmacy and our low prices.

Current Alternatives

Competition takes many different forms in the pharmacy industry.

• Chain pharmacies.  These are state or national chains such as Rite-Aid.  The advantage to these chains are better prices through economies of scale, as well as personalized service.  The personalized service takes the form of the chain having a record of your medication purchases as well as any allergies that you have disclosed to them.
• Local pharmacies.   These are the pharmacies where you typically know the pharmacist and they know your medical history.  This option is high in personalized service and convenience, and high in price.
• Mail order and Internet pharmacies.  These are similar to The Discount Pharmacy.
• Canadian pharmacies.  These pharmacies are located in Canada where the cost of drugs is lower than in the U.S.  These pharmacies can be accessed through mail order, the Internet, or via travel.  Recently there has been the trend for trips arranged for senior citizens in Northern States to travel up to Canada for the day to pick up their medicines.

Our Advantages

The Discount Pharmacy’s competitive edge is superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.

We will be able to do that by eliminating some of the services traditionally offered by pharmacies. For example, we will employ only one pharmacist and use pharmaceutical technicians to fill the void. As long as a pharmacist is on site during the hours of operation, we can use the pharmaceutical techs for all other capacities where other pharmacies use pharmacists. Other efficiencies are created by having only a small store front and conducting most of our business through mail order.

Finally, The Discount Pharmacy is not designed to hold the patient’s hand during their purchase. We expect that the vast majority of our customers will already be informed of how to take the medication, and any side effects or drug interactions that should be avoided. We will simply provide each patient with a print out of all the relevant information for consumption of the medication.

Keys to Success

The keys to success are:

• Satisfy our customers so they will return again and again
• Maintain low overhead and operating costs
• Provide better prices than all our competitors

Marketing & Sales

Marketing plan.

The marketing strategy will be based on social media, mainly Facebook and Twitter, offering useful information and opinion while quietly appealing to the customer’s sense of value. The marketing campaign’s goal will to be increase awareness of The Discount Pharmacy with their target market.

The sales strategy will be based on generating long-term relationships with customers. To facilitate that, we will provide medications at superior prices, have medicines in stock for both quick shipment and store front pick up, and provide superior customer service. All sales agents will be trained to provide friendly, knowledgeable customer service. By keeping to these simple, yet effective, business practices, we expect that our customers will make The Discount Pharmacy their exclusive source for medications. For some, medications are an integral part of their lives, so establishing long-term relationships will ensure a large, loyal customer base

Milestones & Metrics

Milestones table.

Key Metrics

Our key metrics are: 

• The # of customers that walk in to the pharmacy 
• The # of customers that choose to mail in 
• The # of reviews saying that people could go to our pharmacy 
• Facebook page views, Twitter retweets  and website shares 
• Total customer traffic on the website 
• Total customer traffic in and out of the store 

Ownership & Structure

Management Team

John Reeleaf has experience working with a major drug manufacturer, Eli Lilly, as a drug representative. He was able to see first hand the profitability associated with the prescription drug industry, as well as the inefficiencies with which most companies are plagued.

John graduated with an MBA from the University of Oregon’s innovative entrepreneurship program. While there he was awarded a $50,000 no interest loan through a business plan competition. That seed money will be parlayed, along with some other investments, into start up expenses for The Discount Pharmacy. John received an undergraduate degree in chemistry from the University of Oregon.

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Key assumptions: 

Of course our main assumption is legality. Regulations affecting our business can change very fast. 

People appreciate:

• The mail in order option for their convenience 
• Prescription at affordable prices 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The Discount Pharmacy will incur the following start-up equipment costs:

• Office equipment including chairs, file cabinets, and desks.
• Front counter, storage bins, cash register.
• Three computer terminals.
• Main computer server with a laser printer, and back-up system.
• Software: Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software detailing side effects and other information pertinent to the customer.
• Assorted bottles, boxes, envelopes, etc. for dispensing and shipment.
• Scales for shipping.
• Telecom system.
• Storefront build-out.
• Start-up inventory.
• Rent, utilities, insurance.

Please note that these items will be used for more than one year and will therefore be labeled long-term assets, depreciated using G.A.A.P. approved straight-line depreciation.

Startup expenses – $24,100 listed as net earnings in dec 2017 

Start-up Expenses

Legal $1,000

Rent $2,000

Utilities  $400

Telecom System $400

Insurance $300

Storefront Build-out $15,000

Expensed Equipment $4,000

Website development $1,000

TOTAL START-UP EXPENSES $24,100

Sources of Funds

Planned Investment

Seed Funding $50,000

John $51,000

Friends and Family $82,100 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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Step-by-Step Guide to Starting a Pharmaceutical Company

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AI Summary Beta

Starting a pharmaceutical company is a challenging but potentially rewarding venture. This summary will provide an overview of key considerations in starting such a business.

Introduction:

Starting a pharmaceutical company is promising but demands substantial time, effort, and resources. Success hinges on market understanding, regulatory compliance, and effective business models. With dedication and knowledge, anyone can embark on this journey.

Thorough research is critical. Dive into the industry, study competitors, and grasp relevant regulations. Analyze market trends, technological advancements, and your competitors’ strengths and weaknesses.

Understanding Regulations:

Pharmaceutical businesses are heavily regulated. Comprehend FDA and local regulations, and consider seeking expert guidance. Stay updated on legal changes, maintain industry standards, and document procedures to avoid legal complications.

Business Model:

Selecting the right business model is crucial. Options include contract manufacturing, retail, and franchising. Each has pros and cons, and your choice should align with your goals, start-up capacity, and customer service strategy.

Launching a pharmaceutical business requires substantial capital for equipment, research, marketing, staffing, and more. Seek funding through government grants, investors, loans, or personal savings, considering tax implications and potential incentives.

Inventory and Supply Chain:

Manage inventory based on business size and product type. Storage conditions and transportation must align with product requirements. Establish efficient supply chains to ensure timely product turnover.

Distribution:

Effective distribution networks are essential for reaching customers. Decide on distribution methods, whether through wholesalers, retailers, or online sales. Choose experienced distributors and continuously evaluate and improve distribution channels.

Technology:

Technology plays a crucial role in pharmaceuticals. Automation enhances efficiency and reduces errors. Invest in secure data storage, cybersecurity, and customer interaction technologies, like websites and social media, to build trust and competitiveness.

Operations:

Operational processes are the backbone of any business. Develop efficient protocols for inventory, production, quality assurance, and regulatory compliance. Quality assurance is paramount in pharmaceuticals.

Prospecting Strategies:

Marketing in the pharmaceutical industry must comply with strict regulations. Consider online advertising, networking, print ads, direct mail, and conferences. Tailor strategies to your target audience and budget.

Insurance and Security:

Protect your business with adequate insurance coverage, considering your company’s size and activities. Implement security measures like surveillance, data encryption, and biometric technology to safeguard assets and sensitive information.

Conclusion:

Starting a pharmaceutical company is a complex but achievable endeavor with careful planning, adherence to regulations, robust business models, and the right technology. Building a reliable distribution network and marketing strategy are vital. Ensure safety and security with insurance and security protocols. Regular monitoring and adaptation are key to success in this dynamic industry. Good luck on your journey!

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Table of Contents

Introduction to Starting a Pharmaceutical Company

A pharmaceutical company can be an appealing business venture, as it can offer the potential of substantial revenue growth and a meaningful impact on people’s lives. There is no doubt that starting a pharmaceutical company requires a great deal of time, effort, and resources. However, with the right knowledge and dedication, starting a pharmaceutical company can be a rewarding experience.

It is important to have a thorough understanding of the market, regulations, and business models in order to be successful in this field. With the right combination of research, planning, and dedication, anyone can start a pharmaceutical company and potentially reap the rewards of being at the forefront of medical innovation.

Doing the necessary research is a vital step to starting your own pharmaceutical company. It is important to dive deep into the industry, research potential competitors, and understand the regulations that may affect the business. Research will help establish a strong foundation for a successful business model.

It’s important to understand the current market and how it is evolving. This should include a review of any new trends and technologies that can be used to differentiate the company from its competitors. The research should also include studying the current players in the market, their strengths and weaknesses, and how your company can compete effectively.

Regulations are an important factor to consider when starting a pharmaceutical company. Regulations vary by country, state, and province, so it is important to become familiar with the relevant local regulations. Depending on the scope of the business, some of the regulations may include workplace safety, environmental standards, labeling requirements, etc. It is important to consult legal experts to make sure you remain compliant with the applicable regulations.

Understanding Regulations

Operating a pharmaceutical business can be a daunting task as regulations are placed on the industry. It is important to understand all regulations that can potentially affect the business, such as those put forth by the FDA and other governing institutions. Additionally, having knowledge of the specific regulations in the state where the business is located is essential for success.

Navigating regulations can be a tricky process and may require assistance from an expert. The laws vary from state to state, making it difficult for business owners to be knowledgeable of the specifics. Consulting legal representatives or industry experts can be very beneficial when trying to stay in compliance.

Additionally, keeping up-to-date with any changes in the law is also important. This will help ensure that the business remains compliant and not subject to fines or penalties. Familiarizing oneself with industry standards and proper documentation procedures can go a long way into protecting the business from any potential legal complications.

Business Model for Pharmaceutical Companies

When it comes to running a successful pharmaceutical company, having the right business model in place is essential. There are several different types of business models available for companies in the pharmaceutical industry, and it can be difficult to determine which one is best for you. In this section, we’ll explore the different options and discuss some key considerations you should keep in mind when choosing your business model.

One of the most popular business models for pharmaceutical companies is the contract manufacturing model. This model involves outsourcing the production of your products to an experienced third-party contractor. In this arrangement, the product will be developed and manufactured according to your specifications, and you’ll only have to pay for the manufacturing services. This type of model is great for companies that are just starting out and don’t have the capacity to manage their own production capabilities.

Another option is the retail model, where you manufacturer and sell products directly to customers. This type of model works well for companies with a wide variety of products that require specialized marketing strategies and customer service. However, it requires a significant financial investment upfront and a lot of time commitment from management.

Finally, there’s the franchise model, where you partner with a larger pharmaceutical company to share resources and expertise. This type of model is great for companies that want to benefit from the resources of larger companies without having to build out their own operations.

No matter which business model you choose for your pharmaceutical company, it’s important to do your research and make sure it’s the right fit for your needs. Consider factors such as start-up costs, operational efficiency, and customer service when assessing different models. Additionally, it’s important to weigh the benefits and drawbacks of each model to ensure you’re making an informed decision.

Finance – Funding Requirements and Sources for Starting a Pharmaceutical Company

Starting a pharmaceutical company is no small task. In the modern age, it requires a significant investment of money and resources. Understanding the financial aspects of a pharmaceutical business is essential for success.

In order to launch a successful pharmaceutical business, a tremendous amount of capital will be required. This money will go towards all the necessary steps to get your business up and running, including: production equipment, research and development, marketing, employees, etc. The exact amount of money needed can vary greatly depending on the size and scope of your operations, but it’s safe to say that the cost of starting a business in this industry can be quite high.

When it comes to finding the money for your project, there are several options available. These include government grants, angel investors, venture capital firms, bank loans, and personal savings. Each of these sources carries its own advantages and disadvantages, so it’s important to do the research to find the best option for your specific needs.

Additionally, you should consider the tax implications of each funding source. Not only are specific laws and regulations in place for different types of funding, but there may also be certain deductions or credits available.

Finally, you should keep an eye out for potential incentives and subsidies from the government. Depending on where you are located, there may be programs available to help startup businesses in the pharmaceutical sector.

Funding a pharmaceutical business is a complex process, but it’s definitely achievable. With the right research and preparation, you can be sure to secure the capital you need for success.

Inventory and Supply Chain Considerations for Pharmaceutical Companies

When starting a pharmaceutical business, it’s critical to understand the inventory and supply chain considerations that go into making a successful venture. The necessary inventory components will vary on the size of the business, the scale of operations, and the products. It is important to understand the needs for purchasing, storage, shipping, and distribution.

For smaller businesses, it is important to purchase inventory in small amounts. This will help manage expenses and prevent product expiration. It also helps create flexibility if products or terms are updated frequently. For larger businesses, having sufficient inventory on hand is critical. An efficient supply chain is required to ensure product turnover happens regularly and in a timely manner.

Storage is another key consideration. Depending on the type of products being sold, different environmental conditions may be needed. Temperature control, special packaging, and other considerations must be taken into account. Products must also be protected from theft or damage. Knowing which facilities to use for storage, and the cost of transportation are also key considerations.

Shipping and distribution are two more important components. Clients need to receive the products as quickly as possible. To ensure this, it is essential to select the appropriate methods for transport and to manage the process appropriately. This includes selecting carriers, providing tracking information, and handling returns. Distribution involves getting the product to the end user in a timely, cost-effective manner.

Successfully managing the inventory and supply chain for a pharmaceutical business requires both knowledge and experience with the various processes and components. Having an understanding of these considerations is vital for running a successful venture.

Distribution: The Key to Reaching Customers

Getting products to customers is a critical factor in running a successful pharmaceutical business. Distributors are necessary for a company to reach their target markets effectively. Distribution networks can be complex and challenging to set up, but they are essential for a company’s success.

Once customers have been identified, a company must decide how products will reach them. Companies that distribute internationally require more complex systems than companies that stay local or regional. Different options include using a wholesaler or a third-party distributor, distributing directly to retailers or selling online. Each option has its own advantages and drawbacks, and should be carefully considered when developing a distribution plan.

When selecting distributors, it is important to look for ones with an established reputation, experience in similar products, and a good track record with other customers. Additionally, relevant certifications, such as Good Manufacturing Practices (GMP) certification, need to be taken into consideration. Once selected, distributors must be given the necessary information and resources to effectively market and sell the products.

Finally, setting up distribution channels is not a one-time process – regular evaluations and updates are necessary to ensure maximum customer reach and satisfaction. Distributors must be monitored, and customer feedback should be incorporated into the process. This feedback can help a company improve their product and service offerings to better serve their customers.

In the pharmaceutical industry, technology is vital. As the expectations around quality and delivery continue to increase, organizations need to be equipped with the right technologies and systems. Technology helps ensure that pharmaceutical companies are meeting all regulatory requirements, as well as providing products and services that are reliable and of a high standard.

When it comes to technology for pharmaceutical companies, there are several areas that need to be addressed. The first is automation. Automation can help streamline processes, improve production, and reduce errors. It can also help with inventory management, ensuring that products are quickly and accurately tracked.

Another area of technology is security. Pharmaceutical companies need to ensure that their data is securely stored and kept confidential. They must also have systems in place to detect any unauthorized access attempts. Companies should also investigate cyber insurance policies to provide additional protection.

Finally, pharmaceutical companies need to invest in customer interaction technologies. Having an online presence is essential to developing relationships with customers. This might include a website, social media pages, or even an app. All of these tools can help reach customers and build trust in the company.

By investing in the right technology, pharmaceutical companies can become more efficient and offer better customer service. Technology can also provide a competitive advantage over other companies in the market.

Operations for a Pharmaceutical Company

Operational processes are the backbone of any business, and this is especially true for a pharmaceutical company. Without efficient and effective operational processes in place, a company may struggle to survive. This section looks at what operational processes need to be considered when starting a pharmaceutical company.

The most basic operational processes involve setting up protocols for ordering and receiving inventory, controlling inventory, producing products, dealing with customer service issues, and managing finances. These processes must be able to respond to changing needs and be able to support long-term growth. An effective operational process also allows the company to remain competitive and profitable.

An important part of any operational process is quality assurance. Quality assurance involves procedures that are designed to ensure the safety and effectiveness of products. A company should have qualified personnel to inspect, test, and verify the quality of every product that is produced or sold. Quality assurance is absolutely essential for a successful pharmaceutical company.

Another key operational process for a pharmaceutical company is regulatory compliance. Regulations provide customers and other stakeholders with assurance that a company is adhering to accepted standards of practice and is providing safe products. In order to remain compliant, a company must always keep up with changes in regulations and make sure that their processes adhere to those regulations.

Having an effective and efficient operational process in place is essential for any business, especially a pharmaceutical company. With the right processes in place, a pharmaceutical company can remain competitive and profitable in the long run.

Prospecting Strategies for a Pharmaceutical Company

Marketing and promoting a pharmaceutical company can be quite complex due to the high level of regulations in the industry. Therefore, it is important to find marketing strategies that fit within the legal framework while still providing the visibility required to reach customers. Prospecting strategies for a pharmaceutical company can include techniques such as online advertising, networking, print advertising, direct mail and attending conferences.

For companies just starting out, online advertising is often an ideal option. There are several platforms available, including the increasingly popular social media marketing. This strategy allows companies to gain visibility without spending large amounts of money on advertising and can be tailored to reach a specific audience. It is also a good way to monitor website traffic and gauge customer interest in the products.

Networking is another powerful tool for a pharmaceutical company. Creating partnerships with other companies, medical professionals and research organizations can be beneficial in a number of ways. These partnerships can lead to new contacts, exchanging of knowledge and shared resources. It is also a great way to promote the brand and differentiate it from competitors.

Print advertising and direct mail campaigns can be useful to reach potential customers, although they can be expensive. These methods have the advantage of being able to target a specific demographic and reach people who may not be active online. Attending conferences is also a great way to create visibility and network with relevant individuals or organizations.

Insurance and Security

Starting a pharmaceutical business means taking measures to protect the company and its operations, and this includes insurance and security. It is important to ensure that your business is protected from any unexpected events and that you are able to meet requirements for the industry.

When it comes to insurance, the types and amount of coverage you need depend on a number of factors including the size of the company, the specific products you are manufacturing, and the type of distribution network used. For example, if you are selling products in both domestic and international markets you may need to have additional coverage. Additionally, you may need to acquire product liability insurance, property insurance, and more.

In terms of security, you need to protect your business from any potential theft or vandalism. You may want to consider investing in a surveillance system that monitors the premises in case of break-ins. You should also ensure that any confidential information is stored securely and encrypted to prevent any data breaches. You can also consider using biometric technology to further secure the premises and store confidential information.

By putting the right insurance and security measures in place, you can ensure that your business is protected from any potential harm. A well-thought-out security plan will help you protect your business from unforeseen risks and allow you to focus on running the best possible pharmaceutical company.

Starting a pharmaceutical company can be a daunting task, but with the right research, understanding of regulations, business model, financing, inventory strategy, distribution network, use of technology, operational processes, and marketing tactics, there is no reason why it cannot be successful. The key to success in this endeavor is careful planning and dedication. By following the steps detailed in this guide, you should be well-prepared to begin your journey to starting a successful pharmaceutical company.

Before jumping into anything too quickly, it is important to do your research and be sure that you understand all of the nuances and complexities involved. Companies operating in the pharmaceutical industry are heavily regulated, so it is critical to be aware of and comply with all laws and regulations. Additionally, establishing a strong business model and sound financials is of utmost importance when launching a new venture.

Having the right technology in place is essential to running a successful pharmaceutical business. By incorporating technologies such as artificial intelligence, robotics, and machine learning into operations, companies can become more efficient, reduce costs, and improve customer service. It is also important to remember that building a reliable distribution network and marketing strategy are integral parts of the success of any pharmaceutical business.

To ensure a safe and secure environment for your business, make sure to purchase the necessary insurance and adhere to appropriate security protocols. Finally, don’t forget to regularly monitor the progress of your business and adjust as necessary.

By following the steps outlined in this guide, you should have the knowledge and tools needed to create a successful pharmaceutical company.

Good luck and enjoy the journey!

FAQs about Starting a Pharmaceutical Company

1. what are the benefits of starting a pharmaceutical company.

Starting a pharmaceutical company can provide an opportunity to make a meaningful impact on healthcare and research, by providing innovative treatments and medications for medical conditions. It comes with many advantages such as revenue potential, global reach, and advancing the knowledge and effectiveness of medicines.

2. What research needs to be done when starting a pharmaceutical company?

When launching a pharmaceutical business, research should be conducted to gain a relevant and detailed understanding of the industry. This may include studying the science behind drugs, reviewing the market trends, analyzing competitors, and researching the regulations within the chosen countries or regions.

3. How do regulations affect a pharmaceutical business?

Regulations are an important consideration when setting up a pharmaceutical company – due to the safety and health effects of the products the company manufactures. Depending on the location and type of product, additional tests or licenses may be necessary to meet various regulatory requirements.

4. What types of business models are suitable for a pharmaceutical company?

There are several different business models that a pharmaceutical company may decide to pursue, including wholesalers, generic drug manufacturers, independent virtual companies, and branded drug companies. The choice of which model to pursue depends on the company’s goals, mission, and resources.

5. What does it take to finance a pharmaceutical company?

Starting a pharmaceutical business requires substantial capital investments for activities such as product development, approvals, production, marketing, and hiring employees. Depending on the size of the business, financing may be sourced from personal funds, venture capital investors, loans, or crowdfunding.

6. What inventory strategies should be considered for a pharmaceutical company?

The inventory management strategies for a pharmaceutical business should prioritize safety and efficiency. Companies should ensure they have the right medicines to meet customers’ needs, while avoiding overstocking and expiry. It’s also important to have a reliable and secure supply chain in place to reduce stockouts and waste.

7. What strategies are available to promote a pharmaceutical company?

Promoting a pharmaceutical business requires finding the right channels to reach the target customer base. Strategies may include in-person marketing, digital approaches such as website SEO, social media, email campaigns, and referral programs. Advertising and public relations may also be used to raise brand awareness.

Great, Thank you!

• Sample Business Plans
• Medical & Health Care

Pharmacy Business Plan

Many pharmacists dream of opening their pharmacies. But more often than not, the collection of funds and resources becomes an overwhelming and off-putting process.

But it doesn’t need to be. A pharmacy business plan can help you at every step of setting up your pharmacy business.

If you are planning to start a new pharmacy business, the first thing you will need is a business plan. Use our sample Pharmacy Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan, spend as much time as you can reading through some samples of medical and health-related business plans .

Industry Overview

The pharmaceutical industry stood at a market value of 1.27 trillion dollars in 2020 and has shown remarkable growth in the past two decades.

The advancement of research and development in the medical field has played a significant role in the growth of the pharmaceutical industry. Also, better production and distribution have changed the way people get medicines.

From online pharmacies to home deliveries, the face of the pharmacy industry has changed and become more convenient.

Also, with the growth of access to information, it has become more competitive too. But if done the right way, the pharmacy business is an extremely profitable one as well.

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Things to Consider Before Writing a Pharmacy Store Business Plan

Check your legal requirements.

A pharmacy business requires a fair amount of licenses and permits. It is good to have a checklist of all the required licenses and to see if you have to get any of them.

Research what permits your state requires as well as the ones mandatory for everyone. It helps you stay on the good side of the law.

Pick a good location

A pharmacy setup requires a fixed minimum area. Also, a pharmacy that is easily accessible is more likely to succeed than one which is unreachable during emergencies. Hence, picking a good location is important .

Also, you can pick between starting a physical store or going online. Both business structures would have their pros and cons. You should pick the one that is the best for you.

Have a proper storage facility

Different medicines and formulas have different storage requirements. You’ll keep most of them in cool and dry places though. Bad storage can cost a pharmacy business dearly, even if you do everything else right.

Hence, it is important to have a good and ideal storage facility before you get started.

Check if your staff has the proper technical knowledge

You need technical knowledge and attention to detail to fare well as a pharmacist and so does your staff. As dealing with medicines is quite a critical job and can have consequences if not done right, it is important to find staff who know what they are doing and are well-trained and up to the job.

After you figure out some of the technical requirements, it is essential to figure out the business side of running a pharmacy. Planning, in the beginning, can save you from a lot of trouble later on.

Chalking Out Your Business Plan

A business plan helps you stay prepared for challenges, make better decisions, and formulate better business strategies. A pharmacy business takes a fair amount of legal procedures and competitive strategies, a pharmacy business plan can help you with that.

Reading some sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample pharmacy business plan for you to get a good idea about how perfect a pharmacy business plan should look and what details you will need to include in your stunning business plan.

Pharmacy Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• Business Ownership
• Summary Chart
• Business Model Description
• Mail order customers
• Walk-in customers
• Target Market Analysis
• Target Market Segment Strategy
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Development Requirements
• Personnel Plan
• Important Assumptions
• Break-even Analysis
• Projected Profit and Loss
• Projected Cash Flow
• Balance Sheet

Let’s understand how you can write each section of the pharmacy business plan.

1. Executive Summary

The executive summary section forms the first page of your business plan. It summarises all that your business stands for.

The executive summary section consists of the following subsegments:

• Objectives : This segment consists of the reason you started your business in the first place. What is your idea behind it and what problem do you plan on solving with it?
• Mission : Your mission statement should reflect how your pharmacy business can help people, apart from providing them with medicines. It reflects how your idea can deal with a problem more optimally.
• Financial Summary : This section would consist of the funding requirements of your business, and how the said funds would be put to use. It serves the main purpose of the executive summary, which is to get your business funded.

As a pharmacy business, your executive summary would consist of the type and size of your pharmacy business, your team, your qualifications and licenses, and a summary of your financial plan.

2. Products and Services

This section consists of a description of all the products and services your pharmacy offers.

For example, apart from your general products, this section can also consist of services your pharmacy offers like home delivery of medicines, subscription packages, online orders, etc.

3. Market Analysis

Market analysis helps you understand what you are getting yourself into. It also helps you make sense of all the research you have done and how you can put it to use for your business.

It consists of the following subsegments:

• Market Segmentation : Through market segmentation, you separate your target audience from the rest of the market based on their age, gender, income, occupation, medical conditions, etc.
• Market Positioning : In this segment, you can add an analysis of where you stand in the current market. And what would be the best marketing strategy for you as per your position?
• Target Market Analysis : In this section, you’ll write down an analysis of your target market, and their tastes and preferences.

As a pharmacy business, you can list down the type of pharmacy you own, your target customer base, the kind of services they like, the location they’ll prefer, and how they buy their medical supplies.

4. Strategy And Implementation

After you carry out market analysis, the next step would be to create a marketing strategy based on the same. This section helps you promote your business to your target audience.

This section consists of the following subsegments:

• Competitive Edge : Include your competitive advantage in this section. Include how your product is better than your competitor’s and how you’ll use that to your advantage.
• Marketing Strategy : Your marketing strategy should speak to your target audience. Your campaign should show your customers how your business solves a pressing problem.
• Sales Strategy : A sales strategy should be formulated after surveying what works best for your specific industry.

As a pharmacy business, you can center your marketing around safe products, better service, and availability. According to various surveys, KAM, clinical sales force, and service rep model are three of the most successful strategies for pharmacies.

5. Web Plan

With everything going online, a website strategy is of utmost importance. With online pharmacies like mail, my prescriptions, and Amazon pharmacy coming up, having an online presence is crucial to being seen by your consumers.

Moreover, an eCommerce website can also serve as a good alternative if you don’t want to go through the hassle of owning a physical store.

Nonetheless, building your online presence can help you in getting noticed. It is also a good method of promoting your brand idea.

6. Financial Plan

This section would consist of everything about your company’s finances. From your financial history to your projected profits, your financial plan would cover it all.

A good financial plan helps your business survive and thrive.

This segment consists of the following subsegments:

• Financial Resources : This segment would consist of the investment you can put in your business, as well as other resources for meeting your funding requirements.
• Funding Requirements : This would consist of the funding requirements to set up your pharmacy and keep it going.
• Projected Cash Flow and Profits : This section would consist of your business’s expected cash flow and profits in the long term.

Download a sample pharmacy business plan

Need help writing your business plan from scratch? Here you go;  download our free pharmacy business plan pdf  to start.

It’s a modern business plan template specifically designed for your pharmacy business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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Pharmacy Business Plan Summary

In conclusion, though a pharmacy business might take a lot of work, you can make running your business a lot easier and smoother with a business plan.

A business plan helps you stay organized and updated as per market trends and changing environment of the industry.

After getting started with Upmetrics , you can copy this sample pharmacy business plan template into your business plan and modify the required information and download your pharmacy business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Pharmacy Business Plan Template

Pharmacy business plan.

If you want to start an independent pharmacy or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their pharmacy businesses.

How To Write a Business Plan For A Pharmacy

Below are links to each section of a business plan for a pharmacy business providing a template for you to write your own.

• Executive Summary – The Executive Summary of your pharmacy business plan should provide an overview of your business concept, key objectives of your business, and a snapshot of the market opportunity.
• Company Overview – The Company Overview section should provide an overview of your company, including history, mission statement, legal structure, retail space, and any relevant information about the pharmacy services and prescription drugs you will offer.
• Industry Analysis – The Industry Analysis section should describe the pharmacy industry and market trends, including size, growth, and major players.
• Customer Analysis – The Customer Analysis section should describe your target market, including their demographics, needs, and buying habits.
• Competitive Analysis – This section should describe the competitive landscape in your local market, including major players such as national chains and other local pharmacies, market share, and any unique selling points (i.e., superior customer service, health screenings, other service offerings).
• Marketing Plan – The Marketing Plan section should describe how you will build brand awareness and attract local customers, including your marketing and sales strategy for developing a loyal customer base and a competitive pricing strategy for over-the-counter drugs and prescription medications.
• Operations Plan – The Operations Plan section should describe how your pharmacy will operate, including details on facilities, equipment, inventory, and security.
• Management Team – The Management Team section should describe the management team, including bios and experience of the pharmacy owner, lead pharmacist, and any other licensed pharmacists. Depending on your management structure, you may also include information about the pharmacy technicians on staff.
• Financial Plan – The Financial Plan section should include 5-year financial projections, including financial statements such as the income statement, projected balance sheet, and cash flow statement.
• Appendix – The Appendix should include any supporting materials, such as market research, competitive analysis, customer surveys, etc.

Start Your Pharmacy Business Plan Here

Next Section: Executive Summary >

Pharmacy Business Plan FAQs

What is the easiest way to complete my pharmacy business plan.

Growthink's Pharmacy Ultimate Business Plan Template allows you to quickly and easily complete your business plan.

Where Can I Download a Pharmacy Business Plan PDF?

You can download our pharmacy business plan PDF template . We also provide a sample pharmacy business plan that you can use to write your own pharmacy business plan.

What Is a Pharmacy Business Plan?

A business plan provides a snapshot of your pharmacy as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Pharmacy?

If you’re looking to start a pharmacy or grow your existing pharmacy you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your pharmacy in order to improve your chances of success. Your plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Pharmacy?

Independent pharmacies are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

What Additional Resources are Available for Pharmacy Owners?

PHARMACY BUSINESS PLAN OUTLINE

• Pharmacy Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Pharmacy Business Plan Summary

Other Helpful Business Plan Articles & Templates

How to Start a Pharma Company in 10 Easy Steps

David Blok | Posted on September 19, 2023 | Updated on March 26, 2024

Introduction

Step 1: market research and pharmaceutical business ideas.

• Step 2: Creating a Business Plan

Step 3: Regulatory Compliance and Legalities

• Step 4: Team Building and Talent Acquisition
• Step 5: Location and Infrastructure

Step 6: Product Development

Step 7: clinical trials and approval process.

• Step 8: Manufacturing and Supply Chain Management

Step 9: Marketing and Sales

• Step 10: Scaling Your Business
• Frequently Asked Questions (FAQs)

Let’s face it: if you are reading this, you are one of two people: the entrepreneurial mind that dreams of building a business in an impactful industry, or you’re passionate about science and research and want to contribute to the better health of humanity.

Whether you envision yourself as a Pharma tycoon or simply long to casually drop ‘I make drugs for a living’ at dinner parties, the time has come for you to admit it – you want to build a Pharma company.

Why is a Pharmaceutical company a good investment?

Starting any company takes time, energy and money, but a Pharma business has even more to consider: it requires a combination of scientific expertise, business acumen, and regulatory knowledge. Whether you’re considering how to start a pharmaceutical business or exploring pharmaceutical business ideas you’re not just selling any products here, you’re impacting the health of people. I know what you are thinking: if it’s so difficult, why do people keep investing in Pharma?

Pharmaceutical manufacturing companies can be extremely profitable:

• These companies show resilience during market downturns, rising in R&D investments to stay competitive & flexible (Grand View Research Report, 2023).
• The industry has experienced significant growth during the past two decades, with Pharma revenues worldwide totaling 1.48 trillion dollars in 2022 (statista, 2024). Still don’t believe it? Check out this blog and discover India’s top Pharma Companies to find out h ow profitable pharma companies are in India.

Being such a lucrative market, it’s a natural good investment, especially if you have a good idea – which I’ll get to in the next chapter.

This brings us to our topic at hand, welcome to your comprehensive guide on how to make your venture a reality. In the upcoming sections, we’ll delve into the why’s and how’s of building a successful Pharma empire. Get ready for insights, anecdotes, and much more.

Let’s dive in!

The first step is always the hardest because there is nothing before it. On the flip side it’s a great opportunity to set the direction of your company. Your business is a blank canvas at this point, and you get to bring your vision to life, so the best way to set the wheel in motion is by understanding everything about the industry gap you are trying to fill, in practical terms, whether your idea is viable or not.

Before you dismiss market research as a formality, ask yourself: “Is there a chance my solution is old news compared to what’s already out there?”.

Unless you have the cure for cancer in your pocket, someone’s advancements in your field are worth taking a look at. At this stage, you should focus on two things:

• Understanding market trends and directions.
• Realizing if your big idea is profitable.

Market research will identify unmet needs within the healthcare system, such as patient preferences. By looking at emerging technologies, you can direct your research and development strategy.

Your company’s direction is in your hands at this point, and isn’t that exciting?

Where to start your research?

Start looking at insightful industry reports, academic journals, and the latest industry news, but remember to use credible and reputable sources.

The most important thing is to stay updated, especially on everything that concerns your big idea; market research will back it up. Staying on top of trends also ensures your product is aligned with market demand, and that you have a competitive edge, also called your unique selling proposition.

Step 2: Business Plan and Funding your Pharmaceutical Company

Once you’ve settled on an idea, it’s time to start shaping it into an actual enterprise. Welcome to a pivotal chapter: creating the blueprint of your operations, aka your business plan. Don’t have the faintest idea of what a business plan consists of? Pharmaoffer has got you covered.

Fundamentals of a bulletproof Business Plan:

• A market analysis – which you already did in Step 1.
• Outline of management and the company organization.
• All your products/services – which you probably already know.
• Customer segmentation.
• Marketing plan.

Pitch Perfect

Why is a detailed business plan crucial, you may ask? This plan isn’t just a formality; it’s your golden ticket. This single document is meant to convince stakeholders and investors that you’re not a risk; you’re a calculated and promising investment, which will increase trust and the chances of getting the funds you need.

So don’t be scared to dive deep into the big questions like who will benefit from your pharmaceutical innovations, and what makes it profitable. Paint the financial portrait of your venture with clarity—how will the funds be utilized, and what’s the return on investment? Venture capitalists, government grant applications, and loans are great routes to explore. Your business plan will prepare you to pitch your idea to the right people.

Okay, this is where it gets tricky, but it’s why pharmaceutical business entrepreneurship isn’t for everybody. You are too far along in this journey to stop now, so it’s better to keep going.

Regulating to triumph

We know that acronyms like FDA, GMP, and CEP may be scary, but like we said from the start of this journey: when it comes to the health of the population, you can’t risk it. Regulations ensure your company is ethical and safe. Dismissing them puts your entire operation at risk of getting a bad reputation, not to mention facing penalties later on. Oh, and besides, no funding without compliance is just not going to happen!

What is your business structure?

Now, let’s talk about how to set up and open a Pharma business. Should you go for an LLC (more partnership-oriented) or a corporation, and why does it matter?

The selection of a business structure is a crucial decision for a company because it impacts various aspects, including:

• Legal responsibilities.
• Liability protection.
• Ability to raise capital – we know this sounds like a broken record on this one, but money it doesn’t grow on trees, right?

Remember, it’s not just about paperwork; your business structure shapes the core of your company. Speaking of structure and shape, it’s time to shape your physical company.

Step 4: Building your A-team

You’re the mastermind behind this venture, but you don’t have to do everything yourself. Like a formula, it takes plenty of ingredients to make one solution. In this section, you’ll select the best people to represent and help grow your business.

The trick to knowing whom to hire is simple: point out the necessary fields for your business to run that you need to hire for, and find people who can excel at them. Think R&D, supply chain management, sales, and, of course, medical professionals. ´

Extra tip: remember that sometimes you don’t want to hire the best technical person, but someone who can complement your team’s attributes, like, for example, someone with a proven track record of adaptability and communication.

Step 5: Location, Location, Location

The perfect location is a no-brainer: it is the one closest to your potential partners. Places like research centers for experiments, hospitals for data, or universities for talent scouting are where you wanna be. Just think of how your idea can improve with these extra resources.

A place to call…office

Ideally, if you picture a creative and productive atmosphere, it won’t be a cramped space, poorly lit with bad chairs, that won’t cut it. Your facilities are the day-to-day of your operation, where some say, the real magic happens, so make sure your spaces are up-to code and optimized for the tasks at hand. Remember, a positive environment boosts morale and increases efficiency.

Admit it, you’ve been thinking of this since the very beginning of this adventure. After all, this is what you came here for. Whether it’s a new drug or medical device, the development phase is the fun, and most important part. Let your R&D work shine to bring your vision to life.

Trials and tribulations

Having a finished product means one thing, and one thing only in the Pharma world: clinical trials. Clinical trials aim to provide a scientific basis for advising and treating patients.

But don’t be discouraged if it doesn’t work out. Even when researchers don’t obtain the outcomes they predicted, the trials results can help point scientists in the correct direction of their research. Trials present their challenges, but as cliché as it is, every challenge is an opportunity in disguise and a testament to your team’s innovation capacities.

Think you heard enough about clinical trials? These are the final stages before your product enters the market, and needless to say, it won’t enter without the green light. How do you make sure it’s approved then?

• Rigorous protocol adherence.
• Collaboration with regulatory bodies.
• Scientifically proven efficacy and safety.
• Real-world testing for validation.

Extra tip: real-world testing is a good option to further validate and solidify product claims that may give you an interesting competitive edge.

Passing this frantic stage is a monumental milestone, and it’s one foot in the door of your Pharmaceutical business success. If you are in this stage, or just looking to dive deeper into the complexities of API’s clinical trials, check out our blog, API Clinical Trials: From Preclinical Trials to Post-Marketing Surveillance.

Step 8: Pharmaceutical Manufacturing and Supply Chain Management

Quality control isn’t just between your lab and office walls most of the time unless you manufacture everything in-house, but is that cost-effective?

We are not going to go into this question but leave it for a promising blog about the pros and cons of API in-house manufacturing or out-sourcing. This time we’re going to talk about the Pharmaceutical company’s supply chain.

As you need to make sure every substance you use is under the same quality control as your business, how can you be positive you are purchasing APIs from a qualified supplier?

We’re not gonna lie, unfortunately this step can be a dead end as many API manufactures aren’t registered in a public contact base.

You really need to know the business and ask around, a total nightmare. This is our mission statement: at Pharmaoffer we want to match the best certified API manufacturers with businesses like yours, so to provide resources for both and enrich Pharmaceutical business supply chain with qualified options.

Your supply ally

When choosing the right suppliers, the biggest worry is compliance standards, so make sure your supplier:

• Meets all compliance standards.
• Is up to speed with industry best practices.
• Has the means to make deliveries on schedule.

You have a finished product, your team is working and the place up and running, so it’s time to find some clients. We do this with a marketing and sales strategy.

What do people think of when they hear your company’s name? Do you have a logo? These are some of the questions you need to clear with the proper professionals.

Branding is understandably the last thing on your mind, but don’t make the mistake to overlook it indefinitely. Nowadays, if your business doesn’t look good it won’t be credible. Branding is how you present your company to the world. It’s your mission statement, your corporate culture, and your values. It will help you find your market and secure a strong position in it.

Getting the word out

Marketing is about business survival, there is no denying it. In this increasingly visual world it’s not enough to have a great product, you need to present it well to elevate it. The way you do so is with marketing tools.

Now don’t fall into cheap marketing tactics: in Pharma you can’t make any false claims, exaggerate benefits, or show dubious testimonials. This will kill your entire operation. Marketing in the Pharma sector demands a careful balance of awareness-raising and ethical considerations. Credibility is central, so keep it real, and let your amazing product and integrity attract customers.

Because we understand how complex marketing strategies can be, at Pharmaoffer we wrote you a startup guide to navigate online marketing in the pharmaceutical sector called Online marketing in pharma; where to start?   Feel free to take a look.

Step 10: Scaling Your Pharmaceutical Business

You finally have a Pharma company, congratulations and we take no credit for it. Now that you have a growing business, the question is: How big do you wanna get? We’ve seen how much does it cost to start a pharmaceutical company and remember that scaling and it isn’t just about growth, it’s about smart growth. Scaling is about expanding your operation, and it should be a calculated decision.

To make the right move you need to be on top of market demand, KPIs tracking, and consult your team to know when it’s the right time to do it.Bigger the business, bigger the challenge.

Bigger the business, bigger the challenge

A bigger business is a complex one. From staffing to resource allocation, be prepared to adapt your business strategies as you expand.

Extra tip: keep your staff informed and let them be a part of the change. It will make them more involved in your business success.

You made it to the end yay!

We saw how to start a Pharmaceutical company investment which is no small endeavor, but it’s a rewarding one for sure! You are building something of your own, following your heart and creative dreams and the best of all, you’re saving lives while you do it, how great is that?

Okay, it’s time to get to work, so roll up those sleeves, and get started if you haven’t already. We have no doubts that if you pay attention to these 10 steps, you have what it takes to build your successful Pharmaceutical company.

Needing further assistance to find the right API suppliers for your business? Fill in the form to contact Pharmao ff er and schedule a free meeting to take your business to the next level.

Is it hard to start a pharmaceutical company?

Yes, but it's also rewarding. Be prepared for regulatory hurdles and significant initial investment.

How long does it take to launch pharma company?

On average, it could take 1–3 years, depending on the business model, licensing, and other factors.

Can I start a pharma company without a medical background?

Yes, although you'll need a team of experts in medical and scientific fields. Your role may be more focused on business strategy and growth.

What are the biggest challenges in starting a pharma company?

Regulatory compliance, securing funding, and market competition are some of the biggest hurdles you'll face.

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• Education & Career (6)
• Events & Exhibitions (3)
• Industry Insights & Trends (11)
• Interviews & Case Studies (8)
• Market Analysis & Data (14)
• Medicines & Access (16)
• Regulations & Standards (19)
• Sales & Marketing (15)

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Pharmaoffer is a B2B platform where you can find all qualified API suppliers in one place

How To Start A Pharmaceutical Company

Starting a pharmaceutical company requires thorough research and business planning, understanding of legal regulations and pharmaceutical guidelines, securing investment, launching efficient production practices, establishing strong distribution chains, and implementing effective marketing strategies.

• Last Update: November 23, 2023

• Steps in this Guide: 10

Starting a pharmaceutical company is a complex and ambitious endeavor that requires careful planning, industry knowledge, and dedication to ensuring the health and well-being of patients. The pharmaceutical industry is highly regulated and competitive, but with the right approach, it is also a sector of tremendous opportunity for those with a passion for healthcare and a desire to make a difference. In this blog post, we will explore the essential steps and considerations involved in starting a pharmaceutical company, from conducting market research and securing funding to navigating regulatory requirements and building a strong team. Whether you are a scientific researcher looking to bring a new drug to market or a business entrepreneur seeking to revolutionize the healthcare industry, this guide will provide valuable insights to help you embark on your pharmaceutical journey.

How To Start A Pharmaceutical Company: Step-by-Step

Step 1: business plan development.

The detailed business plan should outline the specific pharmaceutical products to be manufactured or sold, describe the target audience, explain the marketing strategies to reach them, and provide financial projections to ensure the success and growth of the business.

Step 2: Legal Structure Determination

Deciding on the legal structure for your business, whether a sole proprietorship, partnership, or corporation, is crucial as it determines the legal and tax obligations your business will have to abide by.

Step 3: Company Registration

Registering your company with the appropriate governmental body is essential for obtaining legal permission to operate in your location. It may also involve acquiring a business license and tax identification number to ensure compliance with regulatory requirements.

Step 4: FDA Approval

To ensure compliance with FDA policies, pharmaceutical companies must obtain the necessary approvals before commencing operations, allowing them to meet regulatory requirements and maintain high standards of safety and efficacy.

Step 5: Secure Financing

Assessing your financial needs is crucial when starting and operating your company. This includes evaluating whether you need loans, rely on personal savings, attract investor funds, or explore other financing options to meet your financial requirements.

Step 6: Location Selection

When selecting a location for your company, it is crucial to consider accessibility, infrastructure, and proximity to your target market or resources. Carefully evaluate these factors to ensure your business can thrive in its chosen location.

Step 7: Obtain Appropriate Insurance

It is crucial for your business to acquire suitable insurance coverage to safeguard against the financial implications of legal claims, property harm, or any other common risks encountered by organizations. Properly chosen insurance can mitigate potential losses.

Step 8: Equipment Procurement

In order to establish and sustain pharmaceutical production, it is crucial to procure all essential equipment, machinery, and cutting-edge technology necessary for the process, ensuring efficiency and adherence to quality standards.

Step 9: Staff Recruitment

To ensure the safety and quality of your pharmaceutical products, it is essential to hire highly qualified staff. Make sure to recruit experienced pharmacists, scientists, and quality control experts to guarantee the highest standards in your operations.

Step 10: Quality Assurance and Control

By implementing rigorous QA and QC practices, businesses can ensure they adhere to industry standards and compliance requirements, mitigating risks and enhancing product/service quality.

Starting a pharmaceutical company is no easy task, but with the right knowledge and resources, it can be a rewarding and profitable venture. In this blog post, we have covered the essential steps to successfully start a pharmaceutical company, including conducting thorough market research, securing funding, obtaining necessary licenses and permits, establishing a manufacturing facility, and complying with regulations. It is crucial to focus on R&D and innovation, as the pharmaceutical industry is highly competitive and constantly evolving. Building a strong team and forming strategic partnerships will also play a vital role in the success of your company. Remember to seek expert advice and guidance throughout the process, and be prepared to invest time, effort, and money before seeing significant returns. With dedication, perseverance, and a customer-centric approach, you can overcome the challenges and build a reputable pharmaceutical company that contributes to the healthcare industry. Good luck on your entrepreneurial journey!

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Pharmaceutical Business Plan

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Starting A Pharmaceutical Wholesale Business: A Step-by-Step Guide

Table of Contents

The pharmaceutical wholesale business is a vital component of the healthcare industry, providing critical support to pharmacies and other healthcare providers. Starting a pharmaceutical wholesale business can be a rewarding and profitable venture for entrepreneurs with a passion for the industry and a strong understanding of the supply chain. However, it can also be a complex and challenging process, requiring extensive research, planning, and preparation.

This article aims to provide a comprehensive guide for starting a pharmaceutical wholesale business, covering every step of the process from market research to marketing and advertising. By following the steps outlined in this guide, aspiring entrepreneurs can increase their chances of success and build a thriving business in this exciting and dynamic industry.

Also Read: What is Pharmaceutical wholesale and how does it work?

Market Research

By conducting thorough market research, entrepreneurs can gain a better understanding of the industry and develop a strategic plan that maximizes their chances of success.

Business planning

Executive Summary: A brief overview of the purpose and content of the business plan.

Market Analysis: A detailed analysis of the market, including market size, growth rate, and demographic trends.

Marketing and Sales Plan: A description of your marketing and sales strategies, including target customer segments, pricing strategies, and distribution channels.

Appendices: Additional materials, such as resumes of key personnel, industry research, and market data.

Legal and regulatory requirements

Business Licensing: You will likely need to obtain a business license to operate as a pharmaceutical wholesaler. This may include submitting an application, paying a fee, and passing a background check.

Drug Labeling Requirements: You will need to ensure that all drugs you sell are properly labeled and meet regulatory requirements for product labeling, including information about the drug’s name, active ingredients, and dosage.

Tax Requirements: You will need to comply with federal, state, and local tax requirements, including registering for tax identification numbers, collecting and remitting sales tax, and filing tax returns.

Starting a pharmaceutical wholesale business can be a significant investment, and securing adequate financing is crucial to its success. There are various options for financing a pharmaceutical wholesale business, including traditional loans, angel investors, venture capital, crowdfunding, and more. The best financing option for your business will depend on your specific needs and circumstances. In this section, we’ll explore different financing options and provide tips for securing funding for your pharmaceutical wholesale business.

Building a team

Building a Team for Pharmaceutical Wholesale Business:

Operations and logistics

Marketing and advertising, tips and best practices, share this:.

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Pharmacy Business Plan Sample

Published Apr.29, 2017

Updated Apr.23, 2024

By: Cynthia Turner

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Table of Content

When someone is found doing workouts at home how to start a pharmacy, he must need relevant information, charts, table of content, independent pharmacy business plans, pharmacy business plan as well as few sample templates for pharmacy business branding. So, the entire business plans for pharmacy must include the most important points which must be well covered to start pharmacy business in full fledged.

Pharmacies must have stock of the best medications, and valuable healthcare accessories including sanitary pads, contraceptive pills and many more. Be modern and try to design a good pharmacy marketing plan before going for investment of financial resources in the industry. Get more new pharmacy business plan ideas from different sources.

Diseases, infections and virus attacks are very dangerous to shorten up the span of life of a guy. So, medications are needed to remove injuries, reinforce the immune system and increase the life expectancy to a great extent. For this reason, pharmaceutical agencies and drug manufacturing companies supply new drugs to people to resist the diseases in advance. Pharmacy business is really lucrative and profitable to an entrepreneur. Drugs are needed in hospitals, clinics, healthcare centers and in residential houses for preventive care.

Drugs are used to cure feeble patients. Children need a number of boosters and antibiotic shots to overtake a number of complicated health hazards. In large scale, medications and potions for patients are required in hospitals. Therefore, pharmacies have the jobs of selling drugs to customers. As an entrepreneur you can also start a small pharmacy or drug store in your locality. Sample pharmacy business plans and template will guide you. We, at OGSCapital, help you with this. Our executives have all the expertise for helping you to develop an appropriate strategy to fulfill your all objectives. If you wish to initiate the process, you just need to fill a contact form.

Choose Top Pharmacy Business Plans to Start Pharmacy Successfully

Well, are you a pharmacist to have licenses for running pharmacies in any town? This question is asked by many enthusiasts who are eager to know whether anyone has the permission to open a local drug store in the vicinity. Certainly, opening local drug stores, you must have an experienced pharmacist to check the prescribed drug lists. Pharmacists have the ability to read the prescriptions and identify the drugs at a first glance. His expertise in prescription reading, drug list checking and familiarity with new drugs helps the vendor to sell drugs comfortably.

If you are not a pharmacist, you need a specialist to hire in the case of inaugurating pharmacy in any popular area. He will help you to read prescriptions, handpick particular medications and understand the medical terms. Drug manufacturing companies in America have to sell only FDA approved medications. They must get authentic papers, citations and drug selling licenses from FDA as well American government.

Therefore, be familiar with local rules to starting a retail pharmacy business plan commercially. Go through a top sample pharmacy business plan and free template for more information.

Basic Requirements to Start Pharmacy Business

• A complete retail pharmacy business plan
• A preliminary financial budget
• Specific site for posting retail pharmacy business plans
• A specialist/experienced pharmacy
• Good stock of new drugs in
• Healthcare accessories like sanitary pads
• Basic amenities like refrigerators, electricity, water and good air vents
• Pharmacy needs to have a site for industry promotion
• Site map with a sample Pharma business plan as well as template
• Information brochures
• Medical aids kits to supply
• Initial affordable drug selling packages to attract customers to have drugs at low price
• Free quotes to do comprehensive studies for opening up a pharmacy.

Understand the Innovation in Pharmacy Business

Pharmacies must not be dirty and poorly managed. Expensive drugs should be stored in safer place which is much more eco-friendly. Heat, fire, rain water and bacteria destroy life saving drugs. The drug store should have excellent air ventilation, clean ambience, least toxins inside the shop and soothing ambience. Refrigerators keep stored medications in good condition.

Internet browsing is not harmful. So, regular data checking must stand you in good stead. The more you research the more you will get new ideas to launch a compact pharmacy business project with bright expectation to have excellent returns. Initially, as a newbie, your ability to design a pharmacy business plan must be limited. You are an educated person with enthusiasm to stand resilient financially. You went for getting advices from seniors to open pharmacies.

Maybe you have had dream of becoming a good pharmacist with your own outlet to sell qualitative drugs. Fake and spurious medications, potions and medical aids are destructive. These fake drug dealers must be punished. In the open market, low quality, sub-standard medications and expired healthcare tonics are sold at low prices. Therefore, every year, the death toll increases due to the exposure to the drug adulteration. Perhaps you have the setback or previous caustic experience. Someone might have died due to consumption of bad drugs. Your dream must be fulfilled.

Online planners in pharmaceutical industry have pre-designed samples, fact sheets, research papers and documents to train newcomers. Novice financers have no industry expansion ideas. Especially pharmacies are different projects to highlight. Drug is the most valuable product as it saves lives. So, definitely lot of care is needed to run pharmacies or drug stores in the city. What type of pharmacy business do you need to opt for? Basically, drug retailers, individual sellers and small size company partners like to have free consultation before establishing a start-up drug store in any known area. The advantages of opening drug stores or local pharmacies in the residential areas include

• Known ambience
• Good familiarity with local citizens
• Be accustomed to local administration
• Good relationship with doctors, patients and oldies
• Easy to find customers
• Better options to enlarge pharmacy business in the home town

However, most probably, you are trapped because you must struggle to find more genuine options to expand your drug stores to have lot of money. So, geographical barrier must not be a problem. Often, it is a lucrative business for you in case you have the plan and templates to take your drug store to backcountry. There are not many drug stores. Competition is low. You can buy and sell expensive drugs to rich persons. Poor people will get affordable medications from your shop.

So, it is good business to manage in the rural areas. However, drug stores in cities are always dazzling in vanity. The buying strength of local people is obviously higher. City based pharmacies are equipped with modern infrastructures. In villages, poor people are not able to buy costly drugs. The availability of sumptuous medical aids packages is also not good in rural belts. Urban areas are developed. Therefore, locate the place and start evaluation. Pros and cons must be checked before deciding to deal with pharmaceutical industry. Retail pharmacy business plan writers are also helpful to people to have guidance in designing the independent plan for starting retail drug store business plan .

Brand medications are not cheaper. These drugs have qualitative components used by manufacturers to produce standard medications in the market. The effect of intake of brand medications is really awesome to help patients to avoid disaster. Doctors prescribe brand medications. Great. Well, one of the best ways to sell brand medications is to find the high profile class. Online ventures must bring a new customer to you. This is a different industry for entrepreneur as there is little chance to meet vendors face to face.

Customers hit the online sites to check the pharmacies for buying the branded drugs recommended by experts. All are not financially sound to buy brand drugs. Pack of Viagra (branded) costs a customer around $1000. Or a pack of 60 pills of Soma is equivalent to $400 inclusive of overnight shipment cost. So, economical buyers find generic medications which are affordable to some extent. Therefore, your drug stores must have both branded medications for the rich and generic medications for the economical class.

It will be a strategy to win customers by providing alternative medication buying option. Generic medications are cheap and components used in manufacturing these affordable drugs are not low in quality. The impact of consumption of generic medications is equal to the effect experienced by a person who takes brand medications. Retail pharmacy business plan writer has many ideas/ template to precise the process of industry inauguration smoothly.

Discount Pharmacies

In the pharmaceutical industry, scientific probing, research and deep analysis are inseparable. Scientists in the medical arena are trying to invent more cost efficient products which must be vehicles for economical customers to save money. Pharmacists will emulate new technologies to increase the cost effectiveness and quality of the drugs. So, doctors, scientists and pharmacists are closely connected for making a convenient customer support portal for better drug supply at low cost. Discount pharmacies are byproduct of the innovative thoughts nurtured by experts.

The collaborative venture in the pharmaceutical industry has made a strong platform for pharmacy business owners to sell affordable medications at discounts. Customers get promotional codes on different types of generic medications. It is much more cost efficient. It is much affordable to a young guy. Result is also same. So as a pharmacist, offer your customers what you have in stock. Discount pharmacies are the places for buying cheap generic medications. Brick and mortar discount drug stores reduce the cost of buying valuable medications.

Well, think whether you are fitted to drug selling industry. A discount drug store needs to have only cheap medications which must be good. Customers will get their drugs by showcasing prescriptions. Now, tailor a business plan identifying the trend in the market. You have handful options to use. As a local guy, you can apply for loan for industry running. Banks will give you support to invest in the pharmaceutical industry.

Next steps include the easy refinancing, recruitment of competent employees, assistants , the availability of good medications at discounts and drug safety programs to minimize the threat. People need proper medical assistance from a vendor. As being a professional pharmacist, it is your concern to prioritize the table work/ground work to inaugurate the drug store in your residential area. Innovation can’t be stopped. Americans are habituated to consume sleeping pills, anti-anxiety drugs and self-boosting capsules to have energy in excess.

They are fast, sophisticated and crazy to travel for exploration. Well, most of American customers are seen buying drugs from online pharmacies which offer discounts. These online discount pharmacies assist busy Americans to have affordable qualitative medications at considerably cheap prices. So, you must have a compatible optimized online shop with an inventory storing only new drugs/ prescribed medications/non prescription medications at discounts. The local stores for drug selling are not permitted to sell non prescription drugs.

They need prescriptions. However, comparatively online pharmacies have good options to help customers to purchase non prescription drugs. Customers don’t need to send the scanned photocopies of prescriptions to pharmacists to buy packet of Soma or Viagra. Buy medications from vendors at any point of time. So, if you want to modernize your retail drug store, design an affordable business plan to start selling generic medications at discount drug stores without putting a band of legal obligation. The online pharmacy is not a local departmental store.

Customers don’t need to visit the store for product purchasing. The virtual shopping cart or pharmacy is actually run through internet. Its customers place orders at the shopping cart and complete transactions instantly. Vendors are liable to ship products to the customers. Now you must have a site which supports mobile phones, computers and different smart devices. Consumers will cross check list of drugs available in their areas. You have a group of employees who manage customers online. Usually, online pharmacies have no go-down or small warehouses.

They are professional and hire moving companies for product shipment. It is a chain for drug supplying. No manual paperwork is conducted. Nor is there any option for meeting customers physically. So, the whole transaction is done via internet. E-commerce infrastructure is easy to operate. This marketing strategy is extensive to help local traders to go for vast venture to reach million customers on a single go. Around $829 billion is invested in global pharmacy business. So, this opportunity is also open to you to have scum of the profits to upgrade your own life.

Online discount pharmacy is open regularly round the clock. Customers from different locations hit the online drug store and buy medications. Prices of these lifesaving drugs, sanitary pads, healthcare pills and antibiotic pills are affordable. Discounts of these medications are attractive to impress economical class. Like Rite Aid, you can also have a chain meds service to bring more fluent drug delivery options to customers. Give individualized service by keeping personal records of patients after clearing transactions.

In future, if the customers have allergies or infections, try to avoid supplying medications which are not prescribed. Besides, help them to choose the prefect meds from the inventory. Unlike local drug store, online discount pharmacies have multi channels to get customers. If you have licenses or permit to export medications to market abroad, strategy vastly. Then, you are also a good exporter with permits to deal with overseas clients. Online platform for medication selling is now modernized.

The shopping carts online must have fast content management, instant credit checking while making payment, quick transactions and free registration. The prescription refill process must be fast and easy. On the other side, the non prescription generic or brand medications should be supplied to have more positive visitors to hit your e-commerce website.

So, you will also have lot of sources to track the best retail pharmacy business plan/ templates, pharmacy start up business plan, pharmacy business plan pdf and innovative pharmaceutical sales business plans. Go through ins and outs of pharmaceutical business plan, pharmaceutical business plans sample, and retail pharmacy business plan including new templates.

Product Quality – Must

In the pharmacy business, the product quality is a must. A vendor or pharmacist should not earn money by delivering expired meds to patients. He should have social obligations to maintain for fairness in pharmacy business. Same way, he is also responsible to process the orders. If meds are delivered late then patients can die. If it is urgent, then shipping process must be fast. Overnight drug supply is not cost effective. Extra processing charges are borne by the buyer.

When your pharmacy business blooms, you must have some better options to make your customers happy. Your online pharmaceutical has few exceptional features which are unbeaten to take your pharmaceutical to million customers outperforming rivals. Pharmaceutical companies must facilitate customers to have their drugs at discounts. Quality of the drugs must not be low. For this reason, there must be analysts and experts to make their comments based on the products meant for sale. Customers will talk to consultants for getting pharma template.

They will go through reports, comments and reviews to have ideas about the quality of meds kept for being sold. Your online med supply stores should be compatible with multiple devices including smart phones. Customers are interested to cross check regular information and updates on their mobile phones. Your e-commerce portal is connected with vast network to support such a sophisticated device. Online customer management center assists new customers to buy products.

For this reason, people feel free to go for buying expensive brand meds from the best pharmacy online. Jot down pros of running a discount pharmaceutical online. Why do people want to buy products online? What is the difference between a local med store and the pharmaceutical on internet? What type of med is sold online? What are the most important pros of buying meds from online pharmacies? Is it cost effective or less time consuming to make deals with online vendors? Well, there are more such questions which can be highlighted for discussion.

Basically, internet based online med stores don’t need manual paperwork. Nor is there any need to entertain customers at the shop. So, investors are not required to buy the land for constructing a big set-up to sell packets of life saving meds, boosters, and health tonics. Online meds stores are operated by pharmacists through broadband. It is a different setting to attract people for business related transaction. Many people don’t understand how to buy meds online. They must be educated.

Well, your pharmacy business promoting campaigns should encourage customers to know about the good aspects of online transactions. First of all, post few blogs, photos, slide shows and of course glossy video clips on home screen to lure newbie customers to have a fast look at the site. After visiting the site, they will be energized to read content, check photos, videos, slide shows and navigate in the site. Online free start-up pharma template will make you more confident.

Site accessibility, information delivery, transaction method, registration, product buying as well as packing for shipment, prices of medications, and way of billing must be innovated. Therefore, ask your website designers to upgrade the site nicely to make it much more compatible with the latest i-devices. Ask them to assist you to change the old policy. Crazy customers in America, Canada, the UK and other parts in Europe have tendencies to buy non-prescription drugs which are not recommended or prescribed by doctors.

They have to pay higher prices to get packets of sedatives or anti-anxiety pills from the local market. Often they are addicted to spurious drugs which enhance the scope of faster deterioration in the health management. They don’t need prescribed drugs as they are not permitted to consume multiple sedatives within 24 hours. They are drug addicted and therefore proper counseling is needed. However, when they hit the online sites or med stores on internet, the surprising gifts are waiting for them.

At a time, it is possible to buy different meds from stores without providing prescriptions. Secondly, they have facilities to deal with a number of drug stores in this online drugstore industry. Promotional offers and discounts are offered to customers as well. At first, when you establish a small size pharmacy, you require the base to stand. It is the ground for you to start building up a strong long lasting structure. It is a dynamic policy to enhance the much faster business promoting.

New Policy for Starting Pharmaceutical Company

Minimum investment is needed to run a pharmacy business. So, the product selling base is required first to ensure the good prospect in this meds supply industry. How to achieve success depends on the strength, resilience, willing force, and lot of energy to do the hard work out. Maybe, it is time consuming but success will come through devotion, hard struggles, and meticulous research to find the best opportunities to be successful entrepreneur with a solid pharmacy business structure.

Invest in the best market where there is excellent ambience to gear up the money earning. It is one of the best things for you to locate the area where you will open the small drug store with innovated structure, and other facilities to tempt customers. It stands to reason; you require lot of plans to design. When you have the dream projects to implement for the business expansion, you must have someone to take you to the last resort successfully.

Many of start-up entrepreneurs are not well organized due to the lack of experience in pharmacy business planning as well as endorsement policy. Well, in this case, a professional business planer needs to be hired for innovating the business plans before investing in the pharmacy industry. Money is needed but you should have excellent projects which have lot of information, data, template, strategy, table of content and resources to let the pharmacy business run smoothly.

Research, probing, intuition and self-discovery study are important to aspiring pharmacy entrepreneurs. To become an experienced entrepreneur, you will have to have strong desires to probe deeply. This research oriented mind will give you a booster to scale up in the industry with success. That’s why, when you have new innovative commercial management plans, policy, programs and glossy projects to implement, you must not stop. The start-up pharmacy business must be expanded.

The profits must be generated. The mobility in the business promotion should be uninterrupted. The longevity of the pharmacy business should be surprisingly longer. Therefore, concentrate on different aspects of commercial management. Go to professional business consultants, experts and business analyzers to have new guidelines/instructions/ plans for extensive analysis.

Brand Business

Brand name of your business works as a booster. It is the workforce. It is the vehicle with a new strategy for you to start the business smoothly. Who will track your business? Brand name is the sign of identification. People will be familiar with your company through the brand name. So, choose the most suitable name for your pharmacy. Well, maybe you have lot of confusion how to configure the brand name and logo.

Really it is much important to you. A cumbersome brand name is not easy to understand. If the name of the pharmacy is long and technically intricate, people are not able to read the brand name easily. So, select the relevant short and attractive words to name your med store. Obviously you need a strategy to conduct more productive business branding.

Invest Money in Promoting Products

Million dollars are overspent in the business promotion campaigns. Giant entrepreneurs have lot of money and they spend financial resources to promote business. Gifts, discounts, and promo codes are offered by these multinational companies. Well, you are a small entrepreneur and you need to earn more money. In the beginning, you have few attractive projects to inaugurate the small business. Well, strategically, you must advertise your products. Advertisement agencies can make your dream productive through lot of ground work, plans, programs and tips.

Hire the top notch advertisers who will make a brief-up covering the most important areas of pharmacy business. Your online advertisements, ads and video clips showcase the med store to impress customers. Certainly, you must have some awesome product endorsement publicizing projects. How to promote the pharmacy business? The objective of your promotional expedition lies in the expansion of the customer management platform with more opportunities to build up the foundation for rejuvenating the business.

Business branding through internet is the weapon for you to convey the best message to people. Your strategy to run business must be effective. What type of medication do you need to sell? Are you a drug retailer? Are you able to sell cheap generic meds? What sort of med do you have in stock? People need better price tags. They are economical. They have the least interest to buy brand meds. Well, your discount drug pharmacy is very much modernized with the stock of high caliber generic medications, life saving meds and qualitative drugs at discounts.

Next step is to have all legal papers, and documents. The paperwork must be done step-wise. First of all, you have to apply for a license. It is the passport for your pharmacy to run. Certainly, it is not easy. Drug licenses are approved only after several surveys, cross verifications and probing. You can’t damage one’s precious life by supplying low quality spurious meds. Right now, government and FDI are not flexible to issue drug licenses easily. Drug addiction is now accelerating to make young generation incompetent.

They have lot of drug buying options. Fake dealers and spurious drug suppliers are seen tempting customers. That’s why; fake licenses and wrong documentation are severely increasing to threaten up people to a great extent. Therefore, you must be fair and honest to have your licenses legally. In this connection, meet an attorney who will advise you how to get the drug license from the superior authority. Smartly speaking, it is not entirely difficult. The legal power will assist you to convince the concerned authority to have the original drug license.

In the beginning, it is the most unavoidable assignment to contact a group of legal experts to ensure the advertising project completion successfully. Pharmacy business must not be dried up after few weeks. You should not backtrack in shame. Bold and strong entrepreneurs must have energy to prioritize the collection of important components to format a new strategic version of business plan to nourish the pharmacy outlet dynamically.

It is a must to maximize the vast media exposure, business branding, meticulous analysis and study to probe deep with good motif to locate the most fruitful niche to speed up the business promotion. Your decision must not be obscure because of the disorders created by your subordinates. Therefore, organize your team to finalize the business branding program and innovative commercial management strategy with the resolution of giving thousand horsepower to your small med store to gain speed.

Tailor Futuristic Advertising Projects

Design futuristic advertising projects. Calculate how much fund is required to establish a single compartment as a small street outlet for selling generic meds. Money you need must be available. If you are not so lucky to arrange fund immediately to overtake hurdle, you must not be found being in lethargic state. Business loans, short term financial aids, and good financial support from different agencies are obtained without complicated paperwork. So, search for this type of secured/unsecured business loan to finance the med store. Financial assistance must be required to buy packets of brands drugs, install computers, and other tools to decorate the drug store.

Basic Components of Discount Pharmacy Business Plan

• Basic indoor furniture pieces like table, chair, desks, small file storing cabinets
• Cash registering systems
• Front counter
• Computer terminal
• Printer for billing
• Electrical goods
• Small data storage server
• Shipping accessories
• Good insurance coverage
• Storing bins

Important Facts to Remember

Customers are different in nature. They don’t have similar mindsets. Nor are they on same strings. Well, study and then evaluate the mindsets of customers. Choose the area where you will get positive customers to sell drugs. Reinvent new strategy to promote pharma. Specific groups of customers need to make walk-in visits to the outlet to purchase meds. This sort of customer has the habit to go to the local med store to buy meds. They are literate.

However, many laymen in the lower middle class are interested to buy prescribed meds from the pharmacies. Secondly, there is another group of people. They are online buyers. They have money to go to the online pharmacy to purchase drugs. Basically, generic medications, and different types of stress management pills they buy from online stores. Prescriptions are not a must for them to buy Viagra, Cialis, Soma or any cheap generic medication to consume.

Apart from this economical class, the enriched and affluent high profile buyers opt for brand meds. Now these medications are very expensive. Even vendors of publicizing portal are not capable of storing different types of brand medications for sale. So, tailor a compact financial budget which must include the overall cost of storing brand, generic and local meds at discounts. The product sale must be fast. Drugs which stored in your refrigerator must be qualitative.

Top Strategies to Expand Pharma

Strategies are applicable to the drug selling. Promotional campaigns are conducive to the faster development of the business. However, forecast is needed to evaluate the vision of yours in the long run. In the first year, estimate the profit percentage. Then you must compare whether you are a gainer or loser. Moderate revenue collection is also good as you are a novice entrepreneur. Well, you need to improve by hook or by crook. Commercial management is not a new thing. Even local traders and informal entrepreneurs know this term.

When your pharmacy business will be launched, your target must concentrate on the store management. Employees should be duty bound. Your pharmacist must be responsible. Drugs kept in your refrigerator must be hygienic. Temperature inside the drug store must be eco-friendly. Apart from this, documentation, billing, registration process and other paper work must be carried out properly. At present, computer application is very urgent. Your tiny med store must be renovated with a set of computers, laser printer and printable papers.

Customers will get bills and invoices through automated bill generated machine. So innovation in the decoration of the med store is certainly essential. Commercial management is also done via internet. Online documentation is undoubtedly smooth. Contact customers on online chatting platform. Talk to them over phone. Make video calls to have advices from experts if required. Permit your employees to use cell phones to send emails to your inbox. Oracle based commercial management portal must be installed into your pharmacy store for taking care of back office jobs smoothly.

Operational and Strategic Planning

Understand competition and reset your marketing strategy.

You are not alone in the pharmacy advertising portal. Regularly minimum 1 million visitors check over thousand sites to buy medications in the world. Billion dollars are hovering in the med manufacturing trade. The advancement in the med field is the turning point and slowly people are showcasing their interest in buying drugs from the online pharmacies. Rivalry, competition, and struggles are basic things for a trader. To make your pharmacy business/ marketing profitable, be proactive to be much more competent.

Emulate new strategies. Borrow much innovative marketing plans and imitate successful sample business templates to bring innovation to the pharmacy business/ pharma marketing. Who is your rival in the market? Well, rivalry doesn’t mean hostility. You must not have impatience to kill someone. Nor are you a militant to spray venom for terminating the city. So, don’t be misled. Competition means the fair rivalry in advertising trade. You should upgrade your trade structure.

You should be efficient to sell drugs at more affordable prices. You should have dozens of futuristic plans to enlarge the trade faster. The cost efficiency is the objective of a newbie to reduce the cost of drugs. Similarly he will not violate the FDI law to sell drugs at lower prices. Competition is needed for the betterment of the service. Fancy how to bring a result oriented business promotion strategy to expect a sound financial structure by operating a small pharmacy store.

Be a creative person. You are budding pharmacy entrepreneurs. So, recycle your raw energy embedded in mind. Go through periodicals, brochures, and magazines to have authentic information. Research materials need to be gathered for making a giant project to enhance the superb commercial management. Therefore, create a different business plan for pharmacy. It is your draft. You have quality to express what you need. You have bundles of new concepts, and ideas to use.

So in draft assignment, feel free to describe the goals, objectives, business starting plans, budget related issues, sources of arranging fund and basic requirements and marketing to start the drug store. Well, the finishing touch needs to be added to the draft. An experienced pharmacy business planner has over hundred samples. He is a professional business plan writer for pharmacy.

He has solved complicated problems. He is one of the most successful planners in the field. So he can give you a summary of the business plan. Even his instant business plan writing backup must be fruitful to you. Do more probing in the modernized med manufacturing and pharmacy company.

Upgrade your basic knowledge for the sake of good familiarity with the pharmacy field/ marketing. Online library, data and million tons of samples boost up novice traders to track their loopholes in upgrading futuristic strategy. Through compact SWOT analysis, he is able to find the negative factors which are not helpful to him to run the small size drug store. Strength of the entrepreneurs must be identified. It is also applicable to you as well. Track where are going? If you have no vision, the area will not be resilient. You should find the niche in which you will cultivate the land for flourishing the pharmacy business dynamically.

Install Plan Software

Conventional planning needs to be replaced. Computers minimize the jobs of taking care of customers. Well, few years back, drug stores have to keep large space for entertaining customers who were found standing for buying medications. Separate counters for billing were open to all consumers. Drugs were not sold through a single counter during emergency. So, there must be extra space for drugs storing, supplying and customer management. Besides, lighting fixtures, indoor furniture pieces and other important accessories must be installed in the drug store.

Simultaneously, change the traditional billing system. Commercial management/ marketing process must undergo vast innovation. Compact highly advanced SAP software for management/ marketing software is on display in Google. Experts have reset this SAP model to help entrepreneurs to complete handful jobs perfectly. Billing, customer care, marketing, data management, invoice processing, and company analysis are conducted. You have the fast software to take decision within short span of time.

Your marketing trade must be perfectly integrated into a unique platform. Monthly you must analyze the trend. Is your pharmacy running fast or any downtime is likely to happen? Profit ratio, and revenues collected for the particular year must be cross checked. Industry remodeling must be done. However, it is really urgent to go deep and find more facts to compare. Is your drug store compatible with new technology? For instance, virtual pharmacy industry is now much sought-after.

Many American guys buy drugs from online med stores. However, in South Africa, Nigeria, and many countries located in Asia are not perfectly tuned up to run online med stores. Mail order delivery system is not innovative in the remote places as well. So, before opening a new drug store online, once again study to understand the mindsets of local people. However, online mail order marketing system is a vast business expansion portal. You will get more customers in this pharma industry.

Even if you have authentic permits and licenses to export expensive meds to overseas customers, you are a successful entrepreneur with good prospect. Drugs are not useless things. Patients must need medications to save their lives. So, the importance of online pharmacy business will not go down even after a millennium. So, slowly you must have command over the pharmacy commercial management/ marketing. Newbie entrepreneurs should do experiments to be much acquainted with the latest industry operating ethics.

It is obviously time consuming but with technical innovation, and advancement in the commercial management, it is wonderfully much more convenient for a newcomer to learn how to open a good pharmacy store in this specific industry. Starting a pharmacy business plan designed by experts is basically a tool for a newcomer to get a roadmap to innovate the pharmacy in much more dynamic way.

In this connection, OGS capital consultants online are experts to guide newcomers how to chalk out futuristic pharmacy business projects fantastically. Take valuable business promoting tips, modern strategy and free advices from these consultants. Chat with OGS capital business consultants to have new strategy, and ideas to remodel the entire corporate portal successfully.

Download Pharmacy Business Plan Sample in pdf

OGS capital writers specialize in business plan themes such as massage business plan , medical clinic business plan , cannabis dispensary business plan , nursing business plan ideas , transportation corporation health services business plan , reiki business plan and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to start a pharmaceutical company

Starting your own business takes time, energy, and money — and if you’re building a pharmaceutical startup, there’s even more to consider.

In the pharmaceutical industry, you must contend with FDA regulations associated with every single stage of the process — from development to approval and beyond. You also must budget for the long waiting period before your products can go to market (assuming product approval). Moreover, to get from point A to Point B, you will need capital to cover equipment, research, and clinical trials .

Before starting your pharmaceutical company, thoroughly plan and map out your strategy, expenses and business model. Additionally, file your articles of incorporation and take care of other administrative activities more so that you can start on the right foot as you navigate this industry. These steps will help make sure the foundation of your pharmaceutical startup is a success.

Assess upfront expenses

It is no secret that you’ll need funding to help you get this project off the ground — your company won’t generate revenue until your drug is approved and on the market. Typically, a drug takes at least a decade to travel the journey from development to the market.

To know the required funding for this process, you first need to analyze the upfront expenses. These costs can vary widely. A 2020 study found that from 2009 to 2018, average costs to bring a medicine to market ranged from $314 million to a staggering $2.8 billion, so it’s essential to do a granular analysis of your projected budget. That includes several different types of costs, such as:

• Facility: If you use your own facility, you’ll have operating costs for the building, as well as for wet and dry labs, office space, manufacturing equipment, and other resources. TO reduce costs, you could use an incubator facility that provides these resources in exchange for monthly rent. Also, consider pharmaceutical manufacturing companies, like Patheon , that could make and package the drug for you — this can also cut down on facility costs.
• Worker s alaries: The good news is that due to mergers and acquisitions, staff is leaving the larger pharma companies to move to smaller ones — but you will still need to offer competitive pay to entice them to leave and come work for your company. Make sure to factor this expense into your funding needs to give yourself some extra padding in case you need it.
• Research and development: Since it takes an average of 10 years for a drug to reach the market, and typically six to seven of those years are in clinical trials, plan for approximately three years of research and development. Remember, 10 years is just the average — it could take longer. Make sure to plan around that.
• Software costs: To develop your pharmaceutical products, you need specialized software to help keep track of processes and procedures since those records are vital to achieving FDA approval. Options include quality management software , document management software , and supplier management software.

Find sources of funding

Once you know how much funding your company will need to start product development and proving it works, you can then seek sources to provide that funding to you. Those sources may include angel investors, venture capitalists, academia, or even other pharmaceutical companies. Moving from your funding stages can take a while, especially if you’re a new pharma company without a product on the market yet. Different funding sources are likely to come in at different stages of your funding. You may start with a grant from a university, and once you’ve done enough research, you could seek out a larger round of funding from venture capitalists.

RELATED READING: The 5 best spots in the United States to start a life science company

Academic partners

If you’re just starting out, you could look for universities that offer funding opportunities or partnerships. For example, the University of North Carolina at Chapel Hill works with several biotech and pharma startups started by faculty and staff through its school of pharmacy and innovation services hub. And at the University of Michigan , Innovation Partnerships help to launch a new startup every three weeks.

Angel investors

During your initial seed funding stage, consider reaching out to angel investors who typically want a share of equity in the company in exchange for investing with you. Angel investors use their net worth to invest and often provide funding to startups in the beginning stages.

Venture capitalists

Once you move into the Series A funding stage, you will have more opportunities to meet with venture capitalists. They usually work for a venture capital firm and want to see a robust business model and how your company will provide a return on investment. As you recruit additional funding, you’ll move into Series B and then Series C, where it will likely be easier to recruit investors.

Pharmaceutical companies

Other pharmaceutical companies also work with smaller life sciences companies to provide funding. Leaps by Bayer invests in smaller companies in both healthcare and agriculture that are working toward goals that include curing genetic diseases, providing sustainable organ and tissue replacement, curing cancer, and reversing autoimmune diseases.

Work with a pharmaceutical consultant

Creating a new drug involves many different professionals, including scientists, executives, and manufacturers. When you are working on launching a new pharma company, you may want to hire a pharmaceutical consultant who is well-versed in the industry and can advise you on the development process. These experts use their knowledge of the pharmaceutical industry to help companies research, develop, and sell their products.

A pharmaceutical consultant can help with many aspects of the business, including:

• Advising on software choices
• Helping with financial decisions
• Looking through data and identifying issues
• Finding clients and making commercial relationships
• Working with insurance companies

Prioritize FDA compliance from day one

The biggest challenge in getting your product to market in this industry is compliance. The FDA has many regulations in place for every single phase of drug development — and with good reason. These rules protect the consumer. Failing to comply could result in failing to get approval for your drug, which is bad news for you and your investors.

A pharma consultant can help you with compliance. It is a requirement for pharma companies to record and store everything within a quality management system so that FDA auditors can review your records and ensure that you follow standard operating procedures (SOPs), from development to distribution. Some firms also offer FDA audit experts who can assess your procedures and policies to help you prepare for an official FDA inspection or third-party audit.

Most synthetic drugs are approved by the FDA’s Center for Drug Evaluation and Research (CDER) . To get approval, you have to fill out a new drug application that will ask for information about clinical trials, product labels , your manufacturing process, quality assurance, and more.

Find reliable suppliers for labels, raw materials and containers

To create and store your drug safely, whether you are making therapeutics or supplements, you will need to source raw materials and containers from suppliers. The pharmaceutical supply chain also follows FDA regulations and current good manufacturing practices (cGMP).

According to ISO 9001:2015 (the global standard for quality management), you will need to determine criteria for each phase of working with a supplier, including evaluating each one, selecting them, measuring their performance, and re-evaluating them as needed through a supplier audit. If your supplier has a quality issue that affects your pharma products, then you as the brand owner are still liable. Evaluate each one carefully, do a risk management assessment, and ensure they have a good reputation and are using a quality management system.

Create a marketing plan

According to a study by Bain & Company , nearly 50% of new drug launches have underperformed expectations in the past eight years. However, Bain found that the ones that do succeed have three elements in common:

• They effectively use messaging to differentiate their drug.
• They offer a great overall customer experience.
• They ensure that there is a way to get “continuous frontline feedback.”

With a new drug, you will see a competitive market emerge within four years . You’ll need something other than a catchy brand name and clinical trial data to get doctors and other healthcare providers to choose your product over the competition.

Make sure to constantly communicate with the network of providers and give them any new data, including post-launch data, to show how your product is outperforming name brand or generic alternatives. Find any differentiators and focus on those in your messaging. For example, is your drug a once-a-day pill vs. twice-a-day? Focus on that element, and present it to providers, so they know your drug is more manageable for patients to take and could increase patient compliance.

You will also need a process for providers to offer new product feedback so that you will stay informed on how it’s performing for their patients. Consider creating a portal they can log into and share information, or make it easy for them to contact your company. Not only does this help your company with its continuous improvement, but it also shows that you care and value their input.

Get the right eQMS

The pharma industry is tough to navigate, and it is easy to become overwhelmed with all the regulations that you must follow, especially while you’re still getting off the ground. That’s why we created a quality management system specifically for life sciences startups that will scale as your grow. And our Qualio Plus team is available to help guide you ever step of the way. Get a demo of Qualio today.

Written by Qualio

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Home / Starting a Pharmaceutical Company: Tips for A Successful Venture

Starting a Pharmaceutical Company: Tips for A Successful Venture

Jonathan anderson.

• August 30, 2023
• Develop a strong business plan that includes understanding the regulatory landscape and conducting a market analysis.
• Construct the production area with help from cleanroom design and construction services.
• Build a solid regulatory strategy to comply with FDA and other agencies.
• Create effective marketing strategies to promote drugs to doctors, patients, and healthcare providers.
• Invest in research and development to prioritize patents and intellectual property.

Starting a pharmaceutical company can be an exciting and potentially lucrative venture but also a complicated and challenging process. The pharmaceutical industry is heavily regulated and requires significant investment, research and development, and marketing efforts to be successful.

However, suppose you have a passion for science, a strong business acumen, and the drive to succeed. In that case, there are several steps you can take to increase your chances of starting a successful pharmaceutical company. In this blog post, we will discuss some tips that can help you on your journey.

Develop a strong business plan

Developing a solid business plan is one of the most important aspects of starting a successful pharmaceutical company.  Your business plan will provide a roadmap, help you secure funding and investors, and define your vision and mission.

Understand the regulatory landscape

The pharmaceutical industry is heavily regulated, and understanding the regulations is key to developing a successful business plan. Before you start drafting your project, comprehensively analyze the regulatory landscape: research FDA requirements, drug development timelines, and the approval process.

Conduct a market analysis

A  market analysis  is critical for any company but particularly important for pharmaceutical companies. Start by identifying your target market and understanding the needs of your potential customers. Analyze the competition, and evaluate the market trends.

Develop a research and development plan

Developing a new drug is a long and expensive process. Building and testing a drug can take years and require substantial financial resources. Your business plan must outline a comprehensive research and development plan that includes timelines, milestones, and budgets.

Define your brand

Branding is essential to any business, and pharmaceutical companies are no exception. Your brand represents your company’s vision, mission, and values. It helps you differentiate from the competition and attract customers. Your business plan should include a comprehensive branding strategy with your company’s name and logo, packaging, website, and marketing plan.

Construct the production area

One of the critical components you’ll need to consider is the construction of the production area. A clean and sterile environment is crucial for safe and effective pharmaceutical production, so partnering with experts in  cleanroom design and construction services  is essential.

These professionals will be able to guide you through the entire process, including selecting suitable materials, methods, and equipment for your production area. Working with experienced designers and builders will ensure that your production area is up to current industry standards and regulations while still meeting your specific needs.

Hire top talent

Your team’s quality is crucial to your pharmaceutical company’s success. You must hire top scientists, researchers, and business professionals dedicated to developing and marketing new drugs effectively. Look for candidates who have experience in their respective fields and are passionate about the pharmaceutical industry.

Invest in research and development

Research and development are critical to the pharmaceutical industry, and you will need to invest significant time and money in this area to succeed.  You should aim to develop drugs that target unmet medical needs and have a high potential for success.  You should also prioritize patents and intellectual property, as they are often the key to profitability in the pharmaceutical industry.

Build a strong regulatory strategy

The pharmaceutical industry is heavily regulated, and you must develop a strong regulatory strategy to comply with FDA and other regulatory agencies. You should hire experts in this area to assist you in navigating the regulatory landscape and ensure that your drugs are safe, effective, and meet all requirements.

Build effective marketing strategies

Marketing is critical to the success of any pharmaceutical company. It would be best to build  effective marketing strategies  to promote your drugs to doctors, patients, and healthcare providers. You should leverage both traditional and digital marketing channels, including email marketing, social media, conferences, and seminars.

The bottom line

Starting a pharmaceutical company is not an easy task, but it can be an incredibly rewarding one. The tips above can increase your chances of creating a successful pharmaceutical company.

A strong business plan, top talent, investment in research and development, a strong regulatory strategy, and effective marketing strategies are the keys to success in the industry. Remember to stay focused, passionate, and innovative, and you will be on your way to building a successful pharmaceutical company.

About the Author

Recent posts, questions to ask about the kyocera unlimited plan, building a safe and sustainable business environment: essential tips and services, 10 summer business ideas you can start this year, what kansas city business owners should know about industrial cleaning, building sustainable real estate practices and partnerships, popular posts.

• Business Plans Handbook
• Business Plans - Volume 03
• Pharmaceutical Company Business Plan

Pharmaceutical Company

BUSINESS PLAN

PAIN AWAY LTD.

1117 High St. Poughkeepsie, NY 13495

The company described in this plan has moved beyond the initial start-up phase and is now seeking investors to finance its growth. Much of the plan, therefore, is geared toward persuading, explaining, and reassuring potential investors that the company (which produces a therapeutic, topical pain cream), is well-managed and stable. The in-depth analysis of the company's competitors is an outstanding feature of this plan, as is its market research.

EXECUTIVE SUMMARY/OVERVIEW

Competition.

• PROPERTY & FACILITIES
• PATENTS & TRADEMARKS
• RESEARCH & DEVELOPMENT

GOVERNMENT REGULATIONS

Insurance and taxes, corporate structure, risk factors.

• RETURN ON INVESTMENT AND EXIT
• ANALYSIS OF OPERATIONS & PROJECTIONS

FINANCIAL STATEMENTS

Type of business.

Non-prescription drug wholesalers; US SIC Code - 2834 Pharmaceutical Preparations.

Company Summary

Pain Away Ltd. is a going concern, a Delaware corporation formed in January 1995 to manufacture and sell its premier launch product Pain Away, a topical pain remedy using FDA-approved homeopathic ingredients developed for the simple purpose of relieving pain. The company was formed by its parent S-corporation, Peale, Inc. in order to market products nationally and internationally. Peale, Inc. was formed in February 1994 to complete the development of the launch product. The formation of the company was a significant step in a 9-year process of refining and testing a homeopathic formula first used by company founder and CEO Robert Peale to alleviate his pain from carpal tunnel syndrome. The R&D phase of this product began when Mr. Peale purchased the original formula, did a thorough study of homeopathy, and refined the formula to its present marketable state. From the beginning of R&D, Mr. Peale worked within FDA guidelines in order to secure FDA registration. Then, in February 1994, the company was formed to finally manufacture and sell the product. Starting with only a handful of customers, including some professionals, chiropractors, physical therapists, etc., only 19 months of operation have yielded 12,000 individual customers with an 80% reorder rate. The current customer base now includes medical doctors from different specialties, sports trainers, and athletes, both professional and amateur. The company expects to show a profit in 1996 and estimates that it will be very profitable in 3 years.

Mr. Peale is 49 years old and has a 25-year history in sales, sales management, and marketing for a tool distribution company. His deep study of homeopathic medicines started in 1985 and included studies in nutritional supplements. Mr. Peale has been invited to sit on a newly-formed FDA committee addressing the growing national interest in natural medicines.

Curtis Company president, Ms. Alana has 25 years of experience in retail and direct sales. She has been a senior sales director and sales trainer for Beautiful You Cosmetics, has owned and operated a retail sporting goods store, and has managed a 15 person, $1 million department for a major chain retailer. She also has some banking experience.

Vice-president of marketing, Ryan Lemon has 32 years of experience as production manager, buyer, sales manager, and marketing manager. He was director of marketing for Pilgrim Health and was responsible for their first launch into New Jersey which led to their first $18MM in sales (in 3 years). He has a BS degree in textile engineering and has also done independent marketing consulting.

Product and Competition

The R&D mission was to develop a greaseless, odorless, topical cream which was measurably more effective at relieving pain than any other OTC (over the counter) topical product. This mission has been accomplished. The company has collected anecdotal, testimonial, and uncontrolled medical study evidence that Pain Away is more effective than the leading topical analgesics such as Arthritin and others. The product's effectiveness in relieving pain is its most powerful benefit, besides the added benefits of it being greaseless and odorless. What distinguishes Pain Away from any other topical analgesic in this still-growing $402.1MM market is its advanced homeopathic formula - a refined blend of 11 FDA approved pure and natural ingredients. The typical OTC topical analgesic works to either block the sensation of pain or distract perception of deep pain by "counterirritating" another localized area near the pain. Pain Away's formula is different. Pain Away treats pain at its source. It stimulates improved circulation in the micro-capillary system in the ligaments and tendons, where most pain is felt. Pain-relief from Pain Away is the result of the body's own self-healing. It also can be applied several times a day because it is odorless and greaseless. The US pain management market ($15.2 billion by 1997) is a mature market with intense, established competition ("The Market for Pain Management Products in the US - Introduction, Drugs, Devices, Trends, and Market Structure," in FIND-SVP). With future pharmaceutical market growth dependent upon new and innovative product additions, Pain Away is entering the field at the right time. The company will distinguish itself and its market position by dedication to the development of only natural-ingredient products. Since its unique formula of ingredients already has FDA approval, the company aims to penetrate the OTC pharmaceutical market, where new products traditionally find success. Here Pain Away will compete with topical as well as internal analgesics, including aspirin, acetaminophin and ibuprofen. An estimated 4,000 people a year die from aspirin overdose. A condition known as "analgesic neuropathy" can result from extended or inappropriate use of analgesics. Medical studies linking heavy usage to health problems have affected aspirin, acetaminophin, and ibuprofen. Pain Away can be marketed as a substitute for (reducing overdose risk with internal analgesics), or as a supplement to (using Pain Away can reduce needed dosage of internal analgesics) internal analgesics when used for certain pain relief. Furthermore, Pain Away is not contraindicated for use with any other medication. This broad-based appeal is built upon the reliability of Pain Away's effectiveness in relieving pain, inflammation, and spasm associated with arthritis, bursitis, sciatic spasm, neck/back pain, tendonitis, tennis elbow, tension headache, achilles tendonitis, and carpal tunnel syndrome.

A second product, a natural anti-inflammatory nutritional support system formula known as "Pain Away Plus," will soon be marketed as a companion product to Pain Away. This multistaged formula is a combination of trace minerals, herbs, and a natural cartilage-derived substance. The company has long-term plans to develop more health-related products.

Funds Requested

Company principals have invested all available personal assets into the product development and operations to date. The need for capital is in the context of the readiness of the product for mass marketing. Management is seeking a $1,500,000 equity investment in exchange for a suggested 30% ownership of the company. All terms of financing are negotiable in order to meet the financial requirements of the investor.

Use of Proceeds

Advertising & promotion campaign - $1,200,000 (see below); Market research - $300,000. The company anticipates the need for follow-on financing after 24 months of business.

Financial History

Sales were first made in 5/94 under Peale Inc. ($143,881). As sales expanded nationally, Pain Away Ltd was formed in January 1995. All sales since then have been under Pain Away Ltd.

Financial Projections

With capital request accomodated, the company believes that Pain Away will jump in sales starting in 1996.

The company will attempt a public offering based on year 2000 earnings. If there is no public market and no prospect for a public market in the near future, then the company will offer to buy back the stock owned by the venture capitalist. A predetermined price could be set ahead of time, if desired by the venture capitalist.

The product effectiveness, evidenced largely through anecdotal evidence, personal testimonials, and repeat sales, has formed the basis for the future growth of the company. Together with a second, complementary product (nearly ready for market), the launch product will be aggressively mass marketed as a pain management system for the next five to ten years. Past and current sales have been to end-users, health professionals, and to some retail chains. The company and product are now poised for first stage expansion. Over 30 target wholesale markets have been identified. While the company uses its marketing strategy to enter these wholesale markets, simultaneous efforts will be made to develop research protocols. Management is confident that the anecdotal evidence and personal testimonials will be strengthened by controlled studies, designed to test the effectiveness of the product and demonstrate the physiological healing activity stimulated by the formula. With scientific credibility, the product will not only build its position in the $150 million homeopathic product category but will also strengthen its transition into the formidable mainstream topical analgesic category.

Future research is planned, based upon inquiry, in order to adapt the formula for animal use (Pain Away currently being tested on thoroughbred horses).

At the end of five years, the company intends to have at least one additional health product and should be able to go public off its revenues. The long-term goal for the company is to become an entrepreneurial leader in the development of natural products for various segments of the health care market. The company plans to capture enough share of the topical analgesic market to become either a viable joint venture partner or an acquisition candidate.

The product formula and delivery system are proprietary. The formula is uniquely advanced and is nearly immediately effective in relieving pain. Homeopathy and immunization have much in common, namely the principle of similars, which states that whatever a substance causes in a large dose, it can stimulate an immune response to defend against it in a small dose. It works by the principles of stimulation to the body's own self-healing mechanism and by the scientific balancing of its natural active ingredients through a dilution process called micro-dosing. Micro-dosing has given homeopathy its 200-year history of safety with no known side effects or toxicity. This self-healing process is in contrast to the majority of commercially successful topical analgesics, which contain counter-irritants, including the newer capsaicin-based products. These ingredients cause a superficial inflammation on the skin which masks pain by deadening the sensation of pain in the epidermal nerve endings only, or by distracting from the perception of pain by irritating an area near the pain source. The Pain Away formula has been developed with precision and balance and is a product that is effective and safe for use on all skin types. Pain Away's eleven active ingredients stimulate improved circulation in the micro-capillary system to ligaments and tendons, where most pain is felt. Pain relief is the result of the body's self-healing.

The manufacturing is sub-contracted out to a highly respected FDA-licensed manufacturer of homeopathic products.

An important unique feature of Pain Away which distinguishes it from other homeopathic remedies is that Pain Away is a topical treatment and is not a systemic treatment. As such, it requires little knowledge to use and is conducive to cross-merchandising in the mainstream analgesic category. Furthermore, since Pain Away is a formula of ingredients, it provides a broad spectrum of effects as compared to single remedies.

The personal commitment of the founder to relieve his own pain also adds a unique value to the story of this product - a story which can enhance marketability - to anyone who is in pain or anyone who knows someone in pain.

Although Pain Away is an homeopathic product, the company will position itself as a natural ingredients company - not necessarily homeopathic. All the company principals plan to engage both septics and advocates of complementary medicine by applying rigorous scientific standards equally across the board, for both conventional and unconventional treatments. Contacts have already been made with the National Institute of Health regarding future research.

Product Description

The product is a specialty consumer good carrying a suggested retail price of $19.95 for a 3.7 oz. jar (1.9 oz. jar also available at $12.95). The jar is designed with a medical appearance. The jar is easy to ship in multiples, is easy to stack on a shelf, is aesthetically pleasing, and has an easy-to-handle screw cap. The actual cream is greaseless, easy and pleasant to apply, and is odorless. Pain Away has, to date, largely been sold directly to end-users, and wholesale to retailers, distributors, and catalogues. The markets have supported the suggested retail price, which was arrived at by surveying market research supporting the $19.95 price along with the perceived value of the product compared to similar products at about the same price. This price also yielded a gross profit of $3.75 per jar and allowed for 100% markup from wholesale.

The eleven ingredients are readily available through top-quality labs which control for purity and authenticity. The cream is compatible with any medication being taken. The product carries a money-back 30-day guarantee.

Purchasers of the Product

Preliminary studies done by independent treatment professionals (no control group used) have shown that Pain Away has been effective for relieving the pain, inflammation, and spasm associated with arthritis, bursitis, sciatic spasm, neck and back pain, tendonitis, tennis elbow, tension headache, achilles tendonitis, and carpal tunnel syndrome. Anyone suffering these ailments, treating these ailments, or caring about anyone suffering these ailments is a potential purchaser of the product. A New Jersey hockey team uses Pain Away prior to workouts, competition, and for pain relief. The head trainer for the team says, "There's no product better for contusion of the quadriceps." He has reported shorter recovery times as a result of using Pain Away. Reports from athletes are that using Pain Away before and after workouts yields less cramping, fatigue, and soreness.

Top purchasers of TPR to date:

The total market for OTC internal and topical analgesics is estimated at $3.6 billion for 1995 and is projected to be $4 billion by 1997. With over 400 brands saturating this mature market, growth is still occurring through new products and product innovations. Driving this growth are:

• increasing use of pain management products for the over-50 population segment, whose numbers are increasing
• increasing awareness that pain does not have to be tolerated and can be treated
• price increases

Body/Muscle Pain Market

The market is dominated by internal analgesics:

Pain Away is a new product to this sizable OTC pain-relief market. It will enter this large arena riding on its effectiveness and coming from the new and growing alternative health care market segment. As a new OTC product, Pain Away has such a broad-based appeal that it will be sold to a large portion of the total OTC pain-relief market (both internal & topical), estimated to be 84% of all US adults and growing as the baby boom population ages and concerns regarding age-related ailments, such as arthritis, increase. Of this 84%, about 25% alone use pain-relief products for body/muscle pain for which Pain Away is especially suited. Just this one type of ailment offers a substantial market potential:

If only 40.3 million Americans (25% of 84% of adults) use an OTC pain-relief product three times a week for body/muscle pain alone, then the market potential is 6.3 billion uses of a pain-relieving product per year. Past use of Pain Away has indicated that a minimum of 3 applications per week would use about one 3.7 oz. jar per month. A conservative yearly estimate would be 10 jars per year, with consistent use. In order to reach a five-year sales goal of $50 million (6.7 MM jars), 667 MM consistent purchasers (10 jars/yr.) are needed. Product history has indicated a consistent 80% reorder rate, so at this rate, 833,000 original purchasers are required. This figure is 2.07% of just this one market segment. The company is very confident that it can capture 2.07% of this market segment within five years, especially considering that the roughly 40 million Americans who exercise on a regular basis, and who are aging, are included in this segment. Anecdotal reports from athletes who use Pain Away are that it can prevent injuries by "warming up" vulnerable muscles and joints prior to a workout. The product has wide applicability within this segment. The table below shows the percentage of the body/muscle pain market segment required to meet the next 5 years of sales projections.

These numbers are based upon a wholesale price of $7.50 per jar and a usage rate of 10 jars/year with a segment population of 40.3 million potential purchasers.

The prescription pain relief market is a distinct market which Pain Away will not attempt to penetrate. Pain Away can, however, compete directly with nearly all pain-relief products because of its unique identity of being both a substitute and a supplement to ail competing products. This uniqueness fits a projected market shift from internal to topical analgesic use as the population ages, and derives from 2 factors: 1) Use of Pain Away can reduce the needed dosage of any pain-relieving medication and 2) Pain Away is already part of a rapidly growing segment (25%-30%/year) of consumers who use alternative health care because of a disenchantment with OTC drugs and a concern about side effects with adverse reactions. Use of Pain Away can reduce needed dosage of other pain-relieving medications. As stated earlier, Pain Away's effectiveness is based upon the homeopathic principle of microdosing. While it promotes self-healing by stimulating blood flow to micro-capillaries, it remains safe for all skin types and with use of any other medication. Anecdotal evidence (from hospitals, some doctors, and occupational rehab center) has indicated that use of Pain Away alone has yielded positive results and use of Pain Away, along with other treatments, has seemed to accelerate recovery. As always, this kind of evidence will be scientifically studied. The salient point is that Pain Away can be a substitute and/or a supplement in pain management, and thereby reduce needed dosages of other medications.

Alternative Health Care Segment

Homeopathy, being an established (officially recognized by UK National Health Service) and significant alternative mode of treatment, is gaining increasing acceptance in mainstream American health care. The National Institute of Health has even awarded grant money for research in alternative treatments, including homeopathy. Drug retailers report that homeopathy may be the fastest-growing category in the trade class of drug chains. Since homeopathy is gaining acceptance as an alternative treatment, the market segments which are already embracing these alternatives will continue to be targeted in the company's initial expansion. These segments include people ages 25-elderly, who seek improved quality in life, and whose lifestyle values involve "newness." This segment includes most of the "baby-boomer" population, estimated at over 75 million. The market of alternative health care seekers is characterized by patients who can and will pay for their own care. As much as 70% of alternative medical treatments are still paid for by patients themselves rather than insurers. This kind of purchasing indicates a willingness to try an alternative product and continue purchasing based upon perceived value of the product's effectiveness. Company management has been encouraged by the consistent 80% reorder rate and knows sales will be sustained once initial purchases are made. The alternative health care market is of respectable proportion. According to the New England Journal of Medicine (1/28/93), 34% of Americans spend $13 billion/year on alternative treatments such as chiropractic, acupuncture, massage, and homeopathy. Pain Away is already marketed to all of these treatment specialties so it will reach the spectrum of alternative treatment. This 34% of Americans are familiar with the term "homeopathic," so there's a consumer predisposition to being further educated about homeopathy as a value-added natural ingredient alternative.

The company will build an early market position on the alternative health-care market and will join the growth of the homeopathic segment as it moves from the fringes to the mainstream of the OTC pharmaceutical market.

Alternative Market Potential:

If only about one third of Americans use an an alternative pain-reliever just twice per month, then the market potential is 2 trillion uses of an alternative pain-relieving product per year. Market indicators are that both the number of users and the frequency of use will increase as the population ages. The use rate of 2 times per month converts to 2 jars of Pain Away per year with consistent use. Again, in order to reach the 6.7 million jar sales goal ($50 MM), at the re-order rate of 80%, Pain Away would have to make 4.2 million initial sales in order to sustain 3.3 million consistent purchasers. This size customer base comprises 4.71% of the growing alternative health care market. The company believes that this sales goal is attainable within the next five years. The table below shows the percentage of the alternative health care market segment required to meet projected sales.

These numbers are based upon a wholesale price of $7.50 per jar and a usage rate of 2 jars/year with a segment population of 89.1 million potential purchasers.

Narrowing the Market Focus 2X

The market potential for pain relief products is huge. By narrowing the focus to product category sales, the potential becomes more exact. Pain Away's product category is within the topical analgesic market, estimated at $402.1 MM annually with a projected $522.7 MM market in 1996 (30% growth) and $692.6 in 1997 (32.5% growth). Starting with $522.7 as the base market volume, and with 30% growth per year for the next 5 years, Pain Away would have to capture 3.33% of the year 2000 market volume to make its sales goal of $50MM. Management believes that these goals are attainable.

The table below shows what percentage of the topical analgesic market will meet Pain Away's sales projections.

The focus can be narrowed further to the homeopathic product category, which is growing at a rapid rate at this time. The dollar volume of this segment is estimated at present to be between $150 million and $215 million and expected to grow at a rate of 25% to 30% a year. Some market-trackers say that retail sales haven't grown enough to support the existing number of homeopathic manufacturers and that a shakeout will consolidate sales in the hands of fewer manufacturers. The forseeable trend, however, is progressive growth from the fringes to mainstream markets, and at a rapid rate. The table below again shows percentages of this dollar volume required to meet sales projections.

These numbers are based upon a 1996 volume mid-point between the projected volume range of $150 MM and $215 MM. Growth rate is 25% a year. At first glance these percentages may seem daunting. However, the manufacturers supplying this niche are relatively few in number and therefore hold significant market shares A new player can get a reasonable market share with the right product and marketing plan. The mainstream merchandising of homeopathic products started in the early '90's and has been tested as a lucrative direction. Company management is very confident that Pain Away will gain enough share points to capitalize on the rapid growth of this product category. Pain Away will not remain in the homeopathic niche. Its effectiveness will make it competitive with mainstream topical angalgesics.

International Markets

The company will also develop an international market. A 10,000-unit order has already been received from a distribution company in Hungary and is awaiting final approval from the Hungarian State Department of Pharmacy. A small order was also sent to well-known sports figure in Spain. Discussions are underway for this individual to start large-scale distribution. The homeopathy market in the UK is estimated at 18M pounds and in Germany at 120M pounds, so European marketing could be strengthened by the homeopathic identity alone. In Germany, an independent division of the German Federal Health Agency publishes monographs on the safety and efficacy of herbal medicines. The company believes that Pain Away would fare excellently under such review and will carefully research and plan when and how to reach such markets.

There are many companies competing for shares of the 3.6 billion dollar OTC analgesic market. The major players are the internal analgesic manufacturers:

The balance of the OTC internal analgesic market is held by private label companies and "others." The major strengths of this level of competition are obvious in comparison to Pain Away's present market position. The major players have:

• a manufacturing cost advantage,
• sophisticated market knowledge and access,
• established sales capability,
• strong R&D capacity,
• and of course, brand name loyalty.

An important competitive strength of Pain Away is that it is topical - pain relief is accomplished without risk of overdose and consequent risk of serious side effects. This competitive strength derives from a previously noted shift in the market from internal to topical analgesic use. This shift in consumer preference, along with Pain Away's effectiveness, can position the product as a substitute/supplement among these large competitors. Management is ever mindful that mainstream pharmaceutical companies are watchful of the homeopathic market and will act accordingly should market share be lost to homeopathic remedies. Becoming a viable acquisition candidate to any one of its major competitors is a realistic goal. Pain Away management is committed to quality product development and is also open to strategic alliances which would enhance its market capability.

The competition in the topical analgesic market is head-to-head. The top competitors are:

The basis for the competitive analysis is Pain Away's most competitive feature:

• It doesn't have any of the aforementioned advantages held by the major, well-known players in this market - yet.
• It doesn't have widespread brand name recognition - yet.
• It doesn't have appreciable market share in topical analgesics, alternative health, or homeopathy - yet.
• It does have a unique formula of safe and effective ingredients which none of the above products have.

All topical analgesics contain counter-irritants, including camphor, menthol, methyl salicylate, eucalyptus, wintergreen, and even the popular capsaicin. These ingredients, even when blended, act primarily to cause a superficial inflammation on the skin. This inflammation serves to hide the pain by deadening pain receptors in the skin.

What distinguishes Pain Away from all of the above products is that the eleven active homeopathic ingredients stimulate the blood flow in the body's micro-capillaries and act synergistically with the body tissue. This stimulates the body's own self-healing. Pain is treated at its source. Company management believes that the unique effectiveness of Pain Away will give it competitive clout. The issue then becomes how to compete.

Although Pepperub (Pepper) and Vapol (Athens) enjoy the largest market share, they are vulnerable to new product introductions. Menthol Plus (Lucia) held the top position in this category last year until Pepperub was re-packaged and relaunched with line extensions. That relaunch along with a relaunch of Zanprin boosted sales of both brands and put Pepperub back on top. Pepperub, Vapol, and Mentholplus are all menthol-based products. Zanprin is a capsaicin-based product and has boosted usage of its relatively new ingredient. Other relatively new capsaicin products are Capcreme (Bioderm) and Capthol (Men-Thol Co.).

Company management believes that Pain Away is generally more effective than Pepperub and Vapol. However, these venerated brand names, large advertising budgets, and consumer loyalty are formidable competitive advantages. Pain Away will focus on other competitors in order to gain a market position.

The key competitors are Menthol Plus, made by Lucia and Zanprin, made by Skin Care Corp.. Menthol Plus is a menthol-based product which Pain Away has encountered head to head in the sports market. Menthol Plus has a retail price advantage in the mass market, selling for $4 for a 2 oz. tube. This price difference is of little concern because Pain Away will promote itself as a high value product. The topical analgesic, alternative health, and homeopathic markets all support pricing based on perceived product value. Menthol Plus' manufacturer has reduced the advertising budget for this product (about $2 million) recognizing from a 21% decrease in 1994 sales that the product has matured. The company plans to acquire other brands (no topical analgesics) and extend its other lines in order to generate sales growth. The company sells another topical analgesic which is doing well in sales but has not reached the same position as Menthol Plus. Pain Away will monitor the life cycle of Menthol Plus and move to gain any market share it might lose.

Zanprin, made by Skin Care Corp., is gaining market share because Zanprin (.025%) and Zanprin- X (.075%) are capsaicin-based products. Capsaicin, derived from cayenne peppers, has created a new segment in the market and is very popular. Other companies are making capsaic in products but Skin Care Corp. attracted market attention by relaunching Zanprin as an OTC consumer product. It had been marketed for seven years to physicians and kept behind the counter, carrying the credibility of a prescription product. In early 1995, the product was re-packaged for shelf space and supported by TV ads. Despite commanding premium prices ($19.95/2oz of Zanprin-X), the product has done dramatically well.

Skin Care Corp. claims that Zanprin is the "only brand with physician endorsement and specific clinical support." This is a credible claim, cultivated for seven years, and obviously contributing to sales of the product.

Skin Care claims to be the first in the industry to develop their highly purified version of capsaicin for a pharmaceutical base. Zanprin distinguishes itself by promoting controlled clinical studies which have supported its effectiveness. Skin Care claims that such clinical trials don't apply to other, less pure, capsaicin formulas. This scientific feature enhances product credibility among physicians and pharmacists.

The management of Pain Away Ltd. recognizes the effective marketing strategy used by Skin Care because it is similar to their own strategy. Advertising and promotion expense is critical. With proper capitalization, Pain Away can compete because the Pain Away homeopathic formula is unique and effective. Many capsaicin users, including Zanprin users, have complained about the burning sensation caused by capsaicin. Pain Away will stand up to any topical analgesic on the market and do very well with comfort, safety, and effectiveness. The company needs to get this message out. The seven-year product life of Zanprin, supported by unique and heavy TV advertising, gives Zanprin quite an edge. Zanprin is now a "new" growth product and Pain Away can grow behind it, by comparing ingredients and effectiveness at every turn. Pain Away is also in the same price range as Zanprin, doing slightly better with $19.95 for a 3.7 oz. jar or $12.95 for a 1.9 oz. jar.

Zanprin is not the "only brand with physician endorsement and specific clinical support." Pain Away has been cultivating health professional support since the R&D phase. The product is heavily endorsed, and more medical support is developing. Many of Pain Away's sales to date have been to health professionals. Regarding clinical support, Skin Care's success with this strategy underscores the strategic importance of Pain Away's plans for controlled clinical studies.

Speaking of "highly purified" formulas, Pain Away can compete strongly with any formula on the market, especially capsaicin-based. The company wants to discuss purity of ingredients and formula and will do so in all promotional efforts.

The remainder of the products listed in the top competitor list have of course the same advantages that any established company with significant market share has. Beyond these immediate competitive advantages, Pain Away can compete, again, on the ingredient effectiveness basis.

Aspratin, an odorless rub which contains Salycin, sold well when it was introduced in 1992. It held third place among topical analgesics at the end of 1993. It has since been surpassed by capsaicin-based Zanprin. Bioderm developed Capcreme and lowered its price when Zanprin was relaunched.

Capthol was recently developed by the long-established Men-Thol Co. and is a capsaicin-menthol blend designed to compensate for the sometimes delayed pain relief when using capsaicin alone.

Salicreme is a methylsalicylate product which has shown flat growth and has lost market share.

Lyptum was a rapid-growth product in 1990-1991 but has since lost market share. Besides the well-established brands like Pepperub, the products which are gaining in this market are the capsaicin-based. This product category is known to be affected by product innovation and development. With proper support, Pain Away will take a respectable market share.

Homeopathic Competition

The competition takes place in the drug chain arena. Homeopathy may well be the fastest-growing category in the trade class of drug chains (20% of all homeopathic product sales). Among the growing number of drug chains which are giving shelf space to homeopathic products are: Walgreens, Medicine Shoppes International, Thrifty Payless, Eckerd Corp., Edgehill Drugs, Genovese and FEDCO, a California supermarket chain. Research published in the Journal of Clinical Pharmacy and Therapeutics states that 27% of US pharmacists consider homeopathic medicines helpful while only 18% consider them useless. The crossover of homeopathy from health food stores, where sales are still strong, to mass markets is gaining momentum.

As mentioned earlier, there are relatively few companies supplying homeopathic products to the mass market. There are five major producers/distributors of homeopathic products.

Health System, Homeopathic Co., and Life-Right pioneered the distribution of homeopathic products to chain drug stores in the early 1990's and are now market leaders, although more companies are entering this lucrative market. Health System Products now has about 40% market share. Homeopathic Co. and Del Sol are aggressively developing the crossover into mass marketing with line development and heavy TV advertising.

All the topical analgesics listed above are arnica-based, with few other ingredients. Arnica Montana is the premier homeopathic medicine for the treatment of shock and trauma to the muscle. These formulas come the closest to Pain Away's because they contain some of the essential homeopathic pain-reducing ingredients. Pain Away's formula, however, blends more ingredients than any other homeopathic topical analgesic on the market. This more inclusive formula gives the product wider applicability. Price-wise, Pain Away is more expensive than most of the competing homeopathic products, where prices are in the $5-$10 range for 2oz.-4oz. sizes. But, this is a value-priced market, so price is not a critical variable. Since Pain Away is very competitive on an ingredient/effectiveness basis, the critical factor is having the resources to promote the product.

Future Competition

As has been noted, the topical analgesic category, including natural ingredient, is rapidly influenced by new clinical studies and product innovations. There are three main sources of new competition:

• New ingredients and/or new innovations of existing ingredients. Examples are new products which employ the medicinal benefits of ammonium compounds. These products are designed to provide pain relief without the objectionable training room smells, burning sensations and stinging of abraded skin that are often caused by the majority of topical analgesics that contain menthol, methyl salicylate or capsaicin as active ingredients. Pain Away's formula has solved this sensation problem and is a less "high-tech" product, for which consumers are showing a preference.
• Companies currently in this market who could increase market share and become major players. Pain Away Ltd. is in this category.
• Chain drug companies may produce their own private label homeopathic products and corral a significant share of this growing market - much as they did in the non-homeopathic analgesic market. This scenario is more likely to happen as homeopathic companies expand the sales volume in this market and there are share points to be taken away by private labeling.

Pain Away Ltd. can be very competitive with the right promotional support.

Marketing Strategies

Increase market share by reducing market share of competitors. This strategy will capitalize on the market development to date and capture a share of markets held by existing pain-relieving topical applications. The key benefit is that conventional pain-relievers mask pain while Pain Away stimulates the body's own healing ability to directly battle an ailment. Another benefit is that homeopathic remedies have no known side effects while many pain-relievers, especially those ingested, have side effects. Neither will Pain Away interfere with any medication. This strategy requires extensive advertising in mainstream media, including infomercial, QVC (Pain Away already under review), 60 second commercial, cable TV, interactive TV, direct mail, independent sales reps, POP displays, and educational inserts/newsletters. One objective of planned controlled studies on the effectiveness of Pain Away is to use scientific evidence to help bridge the narrowing gap between natural and conventional medicine. Product studies will support this marketing strategy. In this context, the company will pursue preliminary inquiries from a favored vendor to use Pain Away in the workplace to study any reduction of lost work time and/or medical costs precipitated by repetitive stress injuries.

Expand a growing new market for alternative health care by positioning to lead this growing market. This strategy involves specialty catalogues (placed in 5 currently), placement on retail shelves of health food stores, educational product inserts/newsletters, media appearances discussing product, and independent sales reps. This strategy addresses the 89.1 million users of alternative health care.

The company has already been approached by two large Multi-Level Marketing companies. This strategy would involve creating private labels for a large customer. Of utmost consideration with this strategy is product identity and how this channel of distribution would affect it. This channel of distribution usually requires more price mark-up than the product would tolerate.

The company will create its own "competition" by developing private labels and/or separate companies to market to different niches.

Keep capital outlay to a minimum by licensing/franchising Pain Away to a brand-name company. This strategy would add value to the product in the form of brand name loyalty, manufacturing strength, and a strong sales/service force already in place. The company envisions its role in this type of strategic alliance as conducting scientific studies to increase the credibility of TPR and in developing new products. This strategy remains an option which could preclude other strategies under mutually acceptable terms.

Building on an initial order from a health product distribution company in Hungary, Pain Away Ltd. will penetrate the European market by targeting England and Germany, where homeopathy is an accepted form of treatment. This strategy would be developed only after a US market position was established.

Marketing Plan

The company is moving from start-up stage into its first growth stage. Market strategy to date can be succinctly described as selling "one jar at a time." Direct personal selling has been the mainstay in sales growth. This strategy has targeted any end-user willing to try the product. These early customers were reached through health care professionals and direct selling through state/county fairs, shopping mall space, health food store chains, and most recently lifestyle catalogues. As the company moves away from direct selling, a strategy which proved to be an excellent market test, into mass-marketing, identified market segments are being matched with appropriate distribution channels. The plan now is to expand and concentrate more on helping the consumer develop product preference by heavy advertising of the brand name, the benefits of the product, the ease of use, and the guarantee. Company expectations are that all advertising will be enhanced by results of controlled studies of product effectiveness.

The company intends to expand regionally, based on existing markets and consumer profiles (e.g., households from the South are likely heavy users of analgesics). The national market will only be tested by placement in catalogues with a distribution of 200 million. As regional sales grow and as the product gains recognition, then a national marketing strategy will take shape. Company management have begun discussions with a major marketing communications agency (Fortune 500 client list) who themselves approached Pain Away. The marketing and sales outline is as follows.

Marketing Function

• A complete review and analysis of the topical analgesic market.
• Utilization of Triad Groups conducted with the professional community and general consumers. Purpose is to identify professional and consumer preferences.
• Based on research, create a product identity.
• From product identity, establish professional and consumer strategic directions, which would affect product design, packaging, advertising, consumer promotion, and product publicity.
• Test both professional and consumer strategic direction via two more Triad Groups.
• Develop launch marketing plan with all elements and budget for both professional and consumer.
• Actual implementation of the plan to include product design changes, packaging, advertising, consumer promotion, display, and product publicity.

Sales Function

Utilize a sales organization enabling direct-call coverage on the top 25 customers, which generally account for 80% of retail sales, and broker-managed coverage for the remainder. Launch plan would include a national sales meeting and all necessary materials.

Professional

Concentrate on the pharmacist community via co-op direct mail. Pharmacist recommendation at the purchase counter does affect sales.

The production process takes place in a standard homeopathic laboratory where raw materials are blended. There are no significant health or safety risks involved. Production orders are processed by purchase order for finished product. Some raw materials are usually on hand but more are ordered against purchase order requirements. Jars are ordered from a separate manufacturer and sent to the homeopathic laboratory to be filled, packaged, and shipped to Pain Away Ltd., where fulfillment is done.

The homeopathic laboratory has the capacity to fill all projected orders. As orders increase, Pain Away management will consider using a fulfillment service and more drop-shipping to wholesale customers. Cost of goods is estimated at 18% of gross sales. This figure has been consistent throughout production to date and is based on the complete production cycle.

There is no backlog.

Production Characteristics

The production process does not require any specialized or proprietary machinery. The critical factors in the production process are the highest quality of raw materials and the incubation process, which assures a stable finished product. Water is added to a base of vegetable/plant emollients. The eleven active ingredients are then mixed into the emulsion, which incubates for about 48 hours in large vats, while monitored for any fungal invasion. The finished product is then lab-tested for potency, which is done by lot number (the company gets lot samples). Filling is currently done by gravity-feed. The manufacturer might advance to computerized filling. One batch is 500 gallons. Lead time from order to packaged product is 4 weeks. Only a skilled and experienced manufacturer can produce the formula. Even other homeopathic manufacturers not familiar with a cream-based product would have difficulty with the production process. General topical analgesic manufacturers would need to become familiar with the raw materials and the production process in order to blend Pain Away's eleven active and ten inert ingredients. The company currently has one back-up manufacturer, which has never been used.

Labor Force and Employees

The company administrative staff consists of 5 people (recently reduced by 3) including the 3 officers. The two employees are paid an hourly wage. The staff are not unionized and there is no expectation of such. The labor supply in the region is more than sufficient to meet all future staffing needs. The sales force is comprised of independent agents who are paid on commission.

Currently, the laboratory procures all production materials. There are no shortages of key components, and multiple sources are available.

Subcontractors

All production is sub contracted out. Only fulfillment and shipping are done in-house. The company has formed a strong working relationship with Herbal Laboratories, which is the key subcontractor. Although management has selected a back-up manufacturer, the existing relationship with Herbal Labs has been more than satisfactory, so no change is foreseen. Other subcontractors supplying jars, labels, and boxes are used based upon price and service and can be replaced.

Standard office equipment is used for administrative functions. All production equipment at Herbal Laboratories is new and there is nothing that would cause production to be stopped for any appreciable time.

PROPERTY AND FACILITIES

The company facility is a single-story 1,950 square foot, cement block structure on about a two-acre cleared lot that is leased in one-year increments. The facility is located in northern Dutchess County, NY. All necessary commercial and industrial infrastructure is in place. The facility is easily accessible from major thoroughfares. The general area has been and is recovering from the closing of 2 large industrial facilities, so there's been anoticeable decline in property values. There is, however, a regional effort to re-direct the area to rely more upon small and entrepreneurial business. Management plans to purchase the building in order to add an appreciable fixed asset and to reduce expenses. The structure is easily expandable, so the company will not have to move during its critical growth stage.

PATENTS AND TRADEMARKS

Active homeopathics are not patentable. Management is exploring establishing a trademark and a formula patent.

RESEARCH AND DEVELOPMENT

The three principals have invested collectively $100,000, which has been capitalized. Plans for the immediate future include forming a research alliance with a university, hospital, or research group in order to develop a protocol for applying the "rigorous scientific standards" against which the effectiveness of Pain Away can be proven. Management has projected R&D expenses at $ 30,000 for the next 12-month period. These expenditures are intended for controlled studies proving effectiveness, and for continuation of developing applications for animals. Management is sales-marketing oriented and does not want to develop only a research lab. Any R&D will be designed to enhance sales and profits. Company management is currently investigating an SBIR grant.

There are no particular federal, state or local laws/regulations that affect the conduct of business. The manufacturer meets OSHA requirements, as does the Pain Away administrative facility. The FDA regulates homeopathy as an OTC non-prescription medicine. Pain Away's ingredients are in total compliance with FDA standards. Mr. Peale cultivated a working relationship with FDA representatives during the initial research and wisely intends to sustain such.

Product liability insurance is underwritten. A buy-sell agreement among officers exists but is not yet backed by insurance. Key employee insurance is also yet to be written.

All taxes are current. The company pays standard payroll, Social Security, and corporate taxes. The product is sales tax exempt in many states.

Company principals first formed an S-corporation under the name Peale Inc. The realization of the likelihood of international sales prompted management to form Pain Away Ltd. as the operational company. Peale Inc. serves a limited partnership which was formed to attract investors. Both companies are run by the same management team. All R&D is done through Peale Inc. There is comingling of funds. This proposal seeks financing for Pain Away Ltd. Return on the investment will derive from the sale of the product Pain Away itself and any other products which the company sells.

Pain Away Ltd. is a member of the Homeopathic Manufacturers Association. The officers were invited to participate in an annual meeting of the newly formed FDA committee on natural medicines. This committee works on the bases for regulations, compliance, and claims for the natural ingredient industry, covering vitamins, herbs, and homeopathy.

Management subscribes to the following publications:

• Homeopathy Today
• Natural Foods Merchandiser
• American Health
• Prevention Magazine
• Let's Live
• New England Journal of Medicine letter

Directors and Officers

A board of directors will be developed in the near future. There is interest from the medical, nutritional, and professional sports communities, as well as from a local bank. Officers are:

Robert Peale - CEO Alana Curtis - President Ryan Lemon - Vice-President, Marketing

Profit and loss responsibilities are shared by the officers.

The officers are primary key employees (backgrounds in executive summary). Other key employees include:

Key Employees

Leslie Ottaviani - bookkeeper and office manager - known by management for 5 years and described as "a dedicated innovator with a true grasp for details." She has experience supervising 20 employees in the accounting department of Worldwide Airlines and has worked as an independent bookkeeper for several companies in Hudson Valley, NY.

Julia Allen - administrative assistant - known by management for 6 years and described as "having people and problem-solving skills and works incredibly well under pressure." Her background includes sales in a successful business which included business consulting.

Remuneration

Accountant and Banker

All other fees paid on an ad hoc basis. Different attorneys have been used on an ad hoc basis (finance closing fees will be paid by the company).

Principal Shareholders

Proposed Financing

Management is willing to negotiate any structure which suits the investor. The company is seeking an equity investor. Management will provide a seat on the company's board of directors. Ongoing reports of key ratios, profit-loss statements, balance sheets, and annual audits would be provided to the investor. It is management's intent that the investor will enjoy returns on investment in excess of that of alternative investments, as a privately held company, while providing investor liquidity of his investment by taking the company public at its earliest opportunity.

Capital Structure

The existing capital structure includes a $50,000 unsecured line of credit with Poughkeepsie National Savings Bank. This line of credit was just brought to maturity in 1/96 for a 30-day period, at which time the line was renewed. If the current financing proposal is accomodated, then the line of credit can be increased.

Additional financing to date has derived from the sale of limited partnerships offering $.01 per 3.7 oz. jar royalty for every $1,000 invested. Each limited partner has been given the right to convert his/her capital investment into common stock when the company goes public, or, to receive back his/her original capital investment when the company goes public. Total amount of financing raised through the limited partnership is $100,000.

As mentioned earlier, officers have collectively invested about $100,000 in the company, mostly through the R&D phase. Officers' "sweat equity" is immeasurable.

As stated in the executive summary: Advertising & promotion campaign - $1,200,000 (see below); Market research - $300,000. The company anticipates the need for follow-on financing after 24 months of business.

Management intends to preserve cash flow by factoring much of the receivables. With the current lead time of 4 weeks, however, some capital may be used to increase merchandising inventory in order to fulfill initial large orders. It is hoped that any follow-on financing can and will be debt financing, serviced by cash flow.

The following table sets forth the capitalization of Pain Away Ltd. as of 12/31/95 and as adjusted to reflect the proposed sale of common stock.

Dilution: The net tangible book value of the company as of 12/31/95 was minus $1,673 per share. Without taking into account any other changes in such net tangible book value after 12/31/96, other than to give effect to the sale of 60 shares (proposed 30% equity share) hereby, the pro forma net tangible book value of the company on 12/31/95 will be $5,827 per share, representing an immediate dilution of $13,597 per share to new investors.

Management recognizes that this proposed financing implies a large premium value on the existing equity and so will negotiate any other conditions which would induce the investor to make the investment.

At the time of the company's IPO, limited partners who opt for common stock will receive their shares from the officers' share of owned stock. The negotiated ownership held by the investor will not be further diluted.

Investor Involvement

Management seeks a close working relationship with the investor. The investor will be given one seat on the board of directors. Management would solicit consultations (for a fee) on financial matters, or any other area of investor expertise (e.g., planning, management development), but voting power is not an option. Fees will also be paid for any future financing and/or profitable business connections arranged by the investor.

Limited Operating History

Even though management feels that the company is at first-stage expansion, it is definitely still an early-stage company. Two obvious risks inherent in early-stage companies are undercapitalization and poor liquidity. Management has capitalized the business operations to date well enough to have developed the product and identified penetrable market segments. The current proposed financing will provide enough capital to handle the anticipated growth.

Limited Resources

Management believes that it has the resources to continue at the present pace of business. An anticipated increase in sales through advertising media such as QVC , regional/national catalogues, retail outlets, and some European distribution can be financed by factoring. These "bootstrapping" approaches have sustained the company to date and will accommodate slow growth. Management believes, however, that more rapid expansion is desirable in order to penetrate its identified market segments. More rapid expansion requires more resources.

Limited Management Experience

All officers have successful backgrounds in marketing. Additional experience in manufacturing/distribution has been gained in the past nine years of product development. Management has consistently shown a willingness to leverage themselves with accomplished professional consulting relationships. The company culture is one which reinforces sharing of expertise with mutual benefit to all concerned.

Market Uncertainties

Any consumer product business is subject to the changing preferences of the marketplace. As presented in the marketing section of this proposal, the target markets are showing substantial growth, which limits uncertainty. There is currently a growing consumer preference for homeopathic topical remedies. More uncertainty is evident when considering competition, but can be made tolerable by on-going research and analysis.

Production Uncertainties

The only uncertainty at present is whether or not the lead time (4 weeks) from purchase order to finished product can consistently be reduced. This uncertainty is of material concern as sales increase. Herbal Laboratories is a sound company with a promising long-term future and has always been customer-friendly, so no more serious uncertainties exist at present. Management believes that vertical integration of manufacturing is feasible in the long-term but is not practical in the near-term.

Liquidation

In the event that liquidation becomes necessary, management believes that the most value could be realized from the sale of the product formula itself. The formula is not patented, so valuation remains uncertain. However, the sales history, along with the testimonials attesting to the effectiveness of this "ready-made" product, should determine value. Office equipment would yield limited value, and unless the company building was purchased prior to liquidation, no value would be realized. Management believes that the company can and will generate increasing value in the near future, evidenced by increasing sales.

Dependence on Key Management

At present, CEO Robert Peale is considered the primary key manager/officer. His knowledge of the product ingredients, his history of public appearances promoting the product, his increasing recognition by the health community as an expert in natural medicine, and his charisma as a business professional highlight his key role. Managerially, the other officers are thoroughly competent and could manage the company and market its products without Mr. Peale. At this critical early stage, however, the product needs an identity and a market position before the loss of any key managers could be overcome. Once the premier product is securely launched and the product line is expanded, the loss of any officer could be absorbed by continued proper management of the company. Management believes that such a development is not far off, once the company is properly capitalized. Until such time, key person life insurance will be purchased.

What Could Go Wrong?

Upgraded advertising campaigns could not lead to any substantial increase in sales. This problem can be avoided by using experienced advertising/marketing consultants who have familiarity with the targeted markets. Furthermore, properly designed test runs on any advertising campaign would provide objective indicators of expected returns. Capital investment in advertising should be gradual and progressively based upon certain expected levels of return.

Stronger competition could capitalize on and stall Pain Away's early success by replicating the product and its marketing strategy. This problem can be solved in two ways: First, with proper capitalization, Pain Away can make an entry into targeted markets rapidly and with enough strength to grab market share. Keeping market share can be easier than getting it. This market requires extensive advertising. Increasing market share could mean an increasing advertising budget. An increasing advertising budget can easily reduce profit margin, so strategic planning is required. The second way to solve the competition problem is in the formula itself. Management will seek to patent the formula. The nature of the homeopathic ingredients is likely to inhibit any mainstream non-homeopathic company from replicating the product. Acquisition of a homeopathic company would make more sense. Narrowing the competition, then, to other homeopathic companies gives Pain Away more of a fighting chance, since its formula is more sophisticated and user-friendly than any homeopathic topical analgesic on the market.

Governmental controls could conceivably impede sales. This problem is unlikely because the ingredients are already FDA-approved. Furthermore, management's participation in the FDA committee to develop regulatory standards for the natural medicine field would provide early warnings of any such prohibitory controls.

The company could be controlled by non-investor stockholders. This problem is not likely to develop because the management team would hold a majority. Management is dedicated to the principles of increasing value and profits and is confident that its efforts will be in concert with those of the investor.

RETURN ON INVESTMENT ANDEXIT

Public offering.

Management plans for an IPO in 5-7 years. The investor's shares would be sold to provide the targeted return on investment. Should there be no public market, then a buy back would occur.

Management will negotiate a buy back formula with the investor and will target milestones in planning for this possibility. Management aims for returning 6 times the original investment in five years.

ANALYSIS OF OPERATIONS AND PROJECTIONS

The business has not shown a profit since sales activity began in May 1994. This lack of profit is not unusual for an early-stage company. Losses were incurred in the start-up phase, where the objective was to get consumers to try the product. Gross profit margins have remained stable, however. Management focus was targeted on getting professionals and consumers to try the product in order to collect anecdotal evidence and testimonials of its effectiveness. Not enough focus was on asset management, as evidenced by a low return on assets ratio (p.32). Now that the product has gotten some recognition, especially in professional circles, the focus will shift toward mass marketing. Management intends to improve inventory management by using factoring of receivables in conjunction with JIT inventory control. As sales volume increases, drop-shipping from plant to wholesale customer, will also be arranged.

Balance Sheet

Monthly Income Statements 1995

Income Statement - 12/31/95

Key Ratio Analysis

THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK SEE NEXT PAGE FOR PROJECTED CASH FLOW TABLE

Projected Cash Flow

Projected Annual Financial Statements

Assumptions

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Pharmaceutical Company Strategic Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

In the fast-paced world of pharmaceuticals, having a strategic plan is essential to stay ahead of the competition and drive success. ClickUp's Pharmaceutical Company Strategic Plan Template is designed to help executive leadership teams outline their long-term goals and objectives with ease.

This comprehensive template allows you to:

• Define research and development priorities to drive innovation and stay at the forefront of medical advancements
• Develop market expansion strategies to reach new customers and maximize revenue opportunities
• Ensure regulatory compliance to meet industry standards and maintain the trust of stakeholders
• Set financial targets and track progress to ensure profitability and sustainable growth

With ClickUp's Strategic Plan Template, you can streamline your planning process, align your team, and confidently navigate the ever-evolving pharmaceutical landscape. Take the first step towards success today!

Benefits of Pharmaceutical Company Strategic Plan Template

When using the Pharmaceutical Company Strategic Plan Template, you can expect to experience several benefits that will help drive the success and growth of your company:

• Streamline the strategic planning process by providing a clear framework and structure for defining goals, objectives, and action plans
• Align the entire organization around a common vision and strategy, ensuring everyone is working towards the same goals
• Identify and prioritize key initiatives and projects, ensuring resources are allocated effectively
• Monitor progress and track key performance indicators to measure the success of the strategic plan
• Adapt and pivot the plan as needed, ensuring the company remains agile and responsive to market changes and opportunities.

Main Elements of Pharmaceutical Company Strategic Plan Template

ClickUp's Pharmaceutical Company Strategic Plan template equips your team with the tools needed to effectively plan and execute strategic initiatives in the pharmaceutical industry.

Here are the main elements of this template:

• Custom Statuses: Use the five predefined statuses - Cancelled, Complete, In Progress, On Hold, and To Do - to track the progress of each strategic initiative and easily visualize its current state.
• Custom Fields: Utilize the eight custom fields, including Duration Days, Impact, Progress, Ease of Implementation, Team Members, Department, and Project Lead, to capture and organize vital information related to each initiative.
• Custom Views: Access six different views, such as Progress, Gantt, Workload, Timeline, Initiatives, and Getting Started Guide, to gain comprehensive visibility into your strategic plan, monitor progress, allocate resources, and ensure successful execution.
• Gantt Chart: Leverage the Gantt view to create a visual timeline of your initiatives, set dependencies, and manage project schedules effectively.
• Workload View: Monitor your team's workload, identify bottlenecks, and ensure balanced resource allocation for successful implementation of the strategic plan.
• Getting Started Guide: Utilize the Getting Started Guide view to provide step-by-step instructions and guidelines to your team, ensuring everyone is aligned and can hit the ground running.

How to Use Strategic Plan for Pharmaceutical Company

Creating a strategic plan for your pharmaceutical company is essential for long-term success. Follow these steps to effectively use the Pharmaceutical Company Strategic Plan Template in ClickUp:

1. Define your mission and vision

Start by clearly defining the mission and vision of your pharmaceutical company. What is the purpose of your organization and what do you hope to achieve in the future? This will guide all of your strategic planning efforts.

Use a Doc in ClickUp to write down your mission and vision statements and ensure alignment within your team.

2. Conduct a SWOT analysis

Assess the strengths, weaknesses, opportunities, and threats of your pharmaceutical company. Identify the internal strengths and weaknesses of your organization, as well as the external opportunities and threats in the industry. This analysis will help you understand your competitive advantage and areas for improvement.

Create custom fields in ClickUp to track each element of your SWOT analysis and ensure it's easily accessible for reference.

3. Set strategic goals

Based on the findings from your SWOT analysis, set strategic goals for your pharmaceutical company. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and aligned with your mission and vision. Examples of strategic goals could include expanding into new markets, developing new drugs, or improving operational efficiency.

Use Goals in ClickUp to create and track your strategic goals, assign them to team members, and set deadlines for completion.

4. Develop action plans

Once your strategic goals are set, develop action plans to achieve them. Break down each goal into actionable steps, assign responsibilities to team members, and set deadlines. This will ensure that everyone is clear on what needs to be done and when.

Use tasks in ClickUp to create action plans for each strategic goal, assign them to team members, and set due dates and reminders.

5. Monitor progress and adjust

Regularly monitor the progress of your strategic plan and make adjustments as needed. Track key performance indicators (KPIs) to measure the success of your initiatives and identify areas that require improvement. If certain strategies are not yielding the desired results, be open to making changes and adapting your plan accordingly.

Use Dashboards in ClickUp to track and visualize your KPIs, monitor progress, and easily identify areas that need attention or adjustment.

By following these steps and utilizing the Pharmaceutical Company Strategic Plan Template in ClickUp, you'll be able to develop a comprehensive and effective strategic plan for your pharmaceutical company.

Get Started with ClickUp’s Pharmaceutical Company Strategic Plan Template

The executive leadership team of a pharmaceutical company can use this Pharmaceutical Company Strategic Plan Template to align their long-term goals and objectives and drive the overall success and growth of the company.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive strategic plan:

• Use the Progress View to track the progress of each strategic initiative and ensure that the company is on track to meet its goals
• The Gantt View will help you visualize the timeline and dependencies of each initiative to ensure efficient execution
• Utilize the Workload View to allocate resources and balance the workload across different departments and teams
• The Timeline View will provide a high-level overview of the strategic plan, including key milestones and deadlines
• Use the Initiatives View to break down the strategic plan into actionable initiatives and assign tasks to team members
• Consult the Getting Started Guide View to access helpful resources and tips on how to effectively use the template
• Organize tasks into five different statuses: Cancelled, Complete, In Progress, On Hold, To Do, to keep track of progress
• Update statuses as you progress through initiatives to keep stakeholders informed of progress
• Monitor and analyze initiatives to ensure the successful implementation of the strategic plan

Related Templates

• Tv Producers Strategic Plan Template
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How to write a business plan for a pharmaceutical wholesaler?

Writing a business plan for a pharmaceutical wholesaler can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a pharmaceutical wholesaler business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a pharmaceutical wholesaler?

• What information is needed to create a business plan for a pharmaceutical wholesaler?
• What goes in the financial forecast for a pharmaceutical wholesaler?
• What goes in the written part of a pharmaceutical wholesaler business plan?
• What tool can I use to write my pharmaceutical wholesaler business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a pharmaceutical wholesaler business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your pharmaceutical wholesaler. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your pharmaceutical wholesaler to be in the next three to five years.

Once you have a clear destination for your pharmaceutical wholesaler, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

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The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

To get visibility on future cash flows

If your small pharmaceutical wholesaler runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your pharmaceutical wholesaler's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your pharmaceutical wholesaler business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your pharmaceutical wholesaler's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Crafting a comprehensive business plan for your pharmaceutical wholesaler, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your pharmaceutical wholesaler has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your pharmaceutical wholesaler, let's delve into the necessary information needed to craft an effective plan.

Information needed to create a business plan for a pharmaceutical wholesaler

Drafting a pharmaceutical wholesaler business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a pharmaceutical wholesaler

Carrying out market research before writing a business plan for a pharmaceutical wholesaler is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research might reveal that wholesalers may be shifting away from traditional sales channels to more digital ones, such as online or automated ordering systems. Additionally, research may demonstrate that wholesalers may be increasingly seeking out partnerships with third-party logistics providers for more cost-effective and efficient distribution services.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your pharmaceutical wholesaler.

Developing the sales and marketing plan for a pharmaceutical wholesaler

As you embark on creating your pharmaceutical wholesaler business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a pharmaceutical wholesaler

As you embark on starting or expanding your pharmaceutical wholesaler, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A pharmaceutical wholesaler might incur staffing costs such as salaries, benefits, and training for employees. They might also incur equipment costs, such as purchasing and maintaining computers and other technology, and purchasing and maintaining delivery vehicles.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your pharmaceutical wholesaler's financial forecast?

The objective of the financial forecast of your pharmaceutical wholesaler's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a pharmaceutical wholesaler are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a pharmaceutical wholesaler shows how much revenue and profits your business is expected to generate in the future.

Ideally, your pharmaceutical wholesaler's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established pharmaceutical wholesaler. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your pharmaceutical wholesaler

The balance sheet for a pharmaceutical wholesaler is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your pharmaceutical wholesaler's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your pharmaceutical wholesaler's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a pharmaceutical wholesaler is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your pharmaceutical wholesaler business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the pharmaceutical wholesaler is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a pharmaceutical wholesaler.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the pharmaceutical wholesaler, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your pharmaceutical wholesaler business plan, let's have a look at the written part of the plan.

The written part of a pharmaceutical wholesaler business plan

The written part of a pharmaceutical wholesaler business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a pharmaceutical wholesaler business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your pharmaceutical wholesaler's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your pharmaceutical wholesaler's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your pharmaceutical wholesaler's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your pharmaceutical wholesaler, you may want to emphasize its access to major transportation routes, its proximity to a major metropolitan area, and its potential for growth. The area could offer multiple options for shipping and receiving, such as airports, railroads, and highways. It could also be in close proximity to a large city, allowing for easy access to customers and suppliers. The potential for growth in the area could create opportunities for the wholesaler to expand its operations, increase its customer base, and capitalize on new markets. All of these factors could make the location an attractive choice for a third party financier.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your pharmaceutical wholesaler might offer a wide range of products and services, such as delivering quality healthcare products, providing access to competitive pricing, and offering a customized inventory management system. This helps customers get the supplies they need quickly and efficiently with minimal disruption to their operations. Additionally, many pharmaceutical wholesalers offer a variety of value-added services, such as providing advice on regulatory issues, facilitating bulk ordering, and offering online ordering options. These services help customers get the most out of their investment in pharmaceuticals, while also ensuring that they are compliant with applicable regulations.

4. The market analysis

When you present your market analysis in your pharmaceutical wholesaler business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your pharmaceutical wholesaler, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your pharmaceutical wholesaler aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include hospitals and large medical facilities. These customers would purchase large quantities of pharmaceuticals often, making them the ideal target for a pharmaceutical wholesaler. Additionally, these customers would need to work with a reliable supplier to ensure that they have the medications they need when they need them.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your pharmaceutical wholesaler.

5. The strategy section

When you write the strategy section of your pharmaceutical wholesaler business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your pharmaceutical wholesaler could face the risk of theft. This could occur both internally, if employees attempt to steal medications, as well as externally, if criminals attempt to break into the warehouse and steal medications. Your pharmaceutical wholesaler may also face the risk of financial losses due to the cost of purchasing medications and the possibility of not being able to sell them in a timely fashion. In addition, changes in regulation or the cost of medications could also lead to financial losses.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your pharmaceutical wholesaler.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your pharmaceutical wholesaler's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have key assets such as inventory and customer data that could be considered intellectual property (IP). These assets could be protected by copyright laws and other regulations. Additionally, the wholesaler might also have trade secrets such as supplier relationships, pricing information, and product formulations that could be protected as IP.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a pharmaceutical wholesaler business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my pharmaceutical wholesaler's business plan?

In this section, we will be reviewing the two main options for writing a pharmaceutical wholesaler business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your pharmaceutical wholesaler's business plan

Using online business planning software is the most efficient and modern way to create a pharmaceutical wholesaler business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your pharmaceutical wholesaler's business plan

Outsourcing your pharmaceutical wholesaler business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the pharmaceutical wholesaler business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your pharmaceutical wholesaler's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a pharmaceutical wholesaler business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my pharmaceutical wholesaler business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a pharmaceutical wholesaler business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your pharmaceutical wholesaler's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your pharmaceutical wholesaler. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• How to write the products and services section of your business plan
• How to write the suppliers section of your business plan?
• Milestones in your business plan
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start a pharmaceutical wholesaler? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Pharmaceutical Companies Business Model

A Pharmaceutical or drug company is a part of the healthcare sector and involved in a commercial licensed business of research & development, manufacturing, marketing, and distributing drugs and medications. Different laws and regulations are imposed on the pharmaceutical companies related to patent, drug testing and marketing, drug safety, pricing and quality of drugs, etc. The pharmaceutical industry includes both private and public pharmaceutical companies that play an important role in vaccine and medication development for the purpose of preventing and reducing diseases. Enhancing quality of life by making a significant contribution in innovative research and active engagement in technological advancements so that the complex healthcare demands of people can be fulfilled; also comes under the portfolio of Pharmaceutical companies. The main aim of the industry is to make sure the availability of drugs for maintaining health by preventing and curing infectious diseases that affect a large population. The pharmaceutical companies are further classified into subcategories based upon their functioning i.e. biotechnology companies, drug manufacturing companies, and the wholesale & distribution companies that are responsible for handling the produced products. As per IBEF (India Brand Equity Foundation), India is considered as the largest providers in generic drugs category all over the world. The Pharmaceutical companies of India supply various vaccines i.e. more than 50% of global demand. Recently, on the demand of International countries that are most affected countries due to Covid-19 such as U.S., Russia, Sri Lanka, etc; India has supplied Hydroxychloroquine tablets to these countries for the treatment of the disease as India is one of the largest producers of these tablets all around the world.

A Brief Background

The history of Pharmaceutical companies and the use of drugs or medicines are quite old from the Medieval Ages where the records are found of people making use of herbs and other plants for healing. We can trace the concept of the modern pharmaceutical industry by the discovery of penicillin and insulin drugs in the 20 th century. Different developed countries, especially European countries, started manufacturing these drugs on a mass production basis. Arabian Pharmacists of Baghdad opened the first drugstore in 754. Lots of drugstores in North America and Europe were converted or developed into big pharmaceutical companies in the 19 th century. 19 th and 20 th centuries became a witness for the discovery of major pharmaceutical companies that exist today.

Business Model of Pharmaceutical Companies

A business model can be viewed as a framework that considers the technological characteristics and potentials of the company as inputs which are built on key resources, key partners and key activities of the company; and further converts these inputs into valuable economic output through the customer relationship, target customer segments, and key distribution channels by means of product or service offering i.e. value proposition. Before going into the detail of each element of the business Model of Pharmaceutical companies, let’s understand first different business segments of Pharmaceutical companies and how they work:

Pharmaceutical Companies- Business Segments

1) API (Active Pharmaceutical Ingredient): To understand the business model of pharmaceutical companies, it is worth taking an idea of the important ingredient in the Pharma industry i.e. API which is considered as the main active ingredient in the drug or medicine to cure diseases. The raw material that is being used to produce medicines, also termed as bulk drugs or API. Various pharmaceutical companies are there that are specialists in producing only APIs. These companies either purchase or produce intermediates themselves for making the final API. Further, these companies sell APIs to different formulation companies for producing final medical drug/medicine. One of such API pharmaceutical companies is Lupin Pharma.

2) Formulations: The term pharmaceutical formulation refers to the process of producing the final medical drug or medicine by combining various chemical substances, including the APIs. In the process of medicine manufacturing, formulations are the end result or product and are available in the form of capsules, tablets, syrups, or injectables.

The pharmaceutical companies indulge in manufacturing of formulations are considered as formulation pharma companies like Dr. Reddy’s Laboratories. Pharmaceutical formulations are of two types i.e.

• Oral formulation: This is related to the formulation of drugs like capsules, tablets, etc. that can be delivered by the mouth.
• Topical medication forms : i.e. creams, gel, powder, paste, ointment, etc.

3) CRAMS (Contract Research and Manufacturing): CRAMS stands for Contract Research and Manufacturing service which is considered as a process by which pharmaceutical companies outsource their research services or activities related to product manufacturing to the companies which offer        low- cost services. Basically, two main activities i.e. Contract Research and Contract Manufacturing come under CRAMS. Pharmaceutical and Biotechnology companies that need extensive Research & Development and manufacturing facilities at large-scale, use CRAMS. This segment of the Pharmaceutical and Biotech industry is also growing at a fast rate. Most of the pharma companies are increasing their outsourcing activities due to the extreme pressure of maintaining fixed costs.

4)  Export/Import Business segment: The Pharmaceutical sector of India is considered as the largest supplier of generic medicines to the developed countries and these medicines are cost-effective too. India exports drugs/ medicines over 200 countries around the globe and the U.S. is the key market for exports. India has witnessed US $19.14 billion pharmaceutical exports in FY19 and US $13.69 exports were there up to January 2020. The exports of pharmaceutical companies consist of drug formulations, bulk drugs, biological, surgical, intermediates, Ayush & herbal products, etc.

  5)  Pipelines in Biotech Companies: Pipeline in pharmaceutical companies, especially in biotech companies refers to the different phases of clinical trials of drug medicine. In the pharmaceutical sector, this term is often used while defining and evaluating the activities, R&D (Research & Development) progress, measuring success, and growth potential for biotechnology pharmaceutical companies. When the status of a drug is considered in the pipeline; it means different clinical trial stages in which it is undergoing or have to undergo before getting approval for final use in the market. So, we can say that different drug medicines that are into clinical trial phases and seeking approval of USFDA (U.S. Food and Drug Administration Authority) are considered as pipeline drugs.

The various stages of a drug clinical trial are as under:

6) Biotech: Pharmaceutical companies are inter-linked with biotechnology companies in terms of obtaining licenses from them for the manufacturing of patented products. Different segments of the Biotechnology sector of India are Bio-Agriculture, Bio-Pharmaceutical, Bio-Services, Bio-Informatics, and Bio-Industrial. Biopharmaceutical products which are mostly pharmaceuticals, also referred to as biological medical product which is a pharmaceutical drug product, manufactured and extracted from biological sources.  This includes allergenic, vaccines, tissues, living medicines that are being used for cell therapy, etc.

7 )  Drug marketing: One of the important business segments of Pharmaceutical companies is marketing. Pharmaceutical companies enhance their market reach with the support of marketing companies or in-house marketing team. Drug marketing companies facilitate these companies by selling their products where pharmaceutical manufacturing companies are not able to sell products in a particular area or region due to the absence of necessary license or marketing network. Now, after gaining insights into the business segments of Pharmaceutical companies, let’s review the different current and emerging business models of the companies:

Current Business Models of Pharmaceutical Companies

A) Block Business Model

In traditional terms, the pharmaceutical industry’s current business model is made around the blockbuster drugs and is referred to as the Blockbuster business model. The mass market is the main target of this business model with an expectation to bring revenue from high sales. Any drug that generates annual sales of over US$1 billion then it is said as a blockbuster. The main uses of these drugs are for the treatment of common medical issues such as diabetes, asthma, high blood pressure, cancer, and high cholesterol, etc. The blockbuster business model of pharmaceutical companies is related to investing a significant budget into in-house R&D (Research & Development) activities, to search different dead-end projects with the hope of turning a few of them into the successful blockbusters that generate high returns.

Blockbuster business Model Canvas of Pharmaceutical Companies

Different elements mentioned in the above Blockbuster business model canvas of Pharmaceutical Companies are as under:  

1. Value Proposition

• The new blockbuster drug offering is one of the main value propositions provided by pharmaceutical companies through which value is created for customers by invented drug usage. Also, delivery of the offering is through drug innovation. Despite starting from the comparatively higher price in the market, the price level of the blockbuster drug soon gets reduce.
• Pharmaceutical companies that are using blockbuster business model cater to a wide range of customers i.e. mass market.
• Drugs are developed by aiming at both innovation and quality. Pharmaceutical companies devote a reasonable part of their revenue to R&D activities in order to provide unique and new products based on technological innovation.
• The product portfolio of big pharmaceutical companies is also diverse as they deliver products and medications to a broad range of customers.
• Big pharmaceutical companies serve customers in various international countries too.

2. Customer Segments

The target customers of pharmaceutical companies under the blockbuster business model are mainly doctors and patients as the companies cover a mass market. Moreover, various health institutions like hospitals, clinics, pharmacies, etc. also come under customer segment portfolio.

3. Key Partners

Pharmaceutical companies generally have the following key partners:

• Channel partners include distributors or sales agents for the purpose of expanding market reach and in-house sales.
• CSR or Corporate Social Responsibility partners comprise of NGOs or non-profit organizations for collaboration on social projects.
• Strategic alliance partners consist of different technology-driven and other pharmaceutical companies and pharmaceutical companies have partnerships with these on shared resources or joint venture projects.
• Merger & acquisition partnership is the strategy adopted by Pharmaceutical companies to expand their reach in emerging markets, maintaining market share by participation in generics, strengthening growth in markets that are matured, etc.

4. Key Activities

Pharmaceutical companies that operate on Blockbuster business model have various key activities such as Research & Development with the companies rather than outsourcing, Development and production or manufacturing of various drugs/ medicines and healthcare products, Testing of drugs, marketing and distribution of drugs to appropriate customer segments using various marketing and distribution channels, and managing internal personnel, production, costing, etc.

  5. Key Resources

The main resources of pharmaceutical companies include research & development platform, technology (Artificial intelligence and Machine learning), technical and non-technical staff, intellectual property, generic capabilities (use of today’s drug innovation for future innovations i.e. both production and innovation), etc.

6. Channels

Various medium or channels of pharmaceutical companies include:

• Website of these companies using which information is provided to different customers related to their products, business activities.
• Sales and marketing personnel plays a key role in making sales and conducting marketing activities of pharmaceutical companies. These sales and marketing team can be segment-wise or geographic region-wise depending upon the market approach of companies.
• Pharmacies and Distribution networks are also key channels of pharmaceutical companies to sell consumer products.

7. Customer Relationship

  Pharmaceutical companies enhance and maintain their customer relationship by providing various customer assistance and customer support facilities such as :

• Customer service support of 24/7 to handle any query or issue of customers
• CRM (Customer relationship management) for better customer service
• Sales team through which customers can interact directly and also, contact numbers, email IDs to facilitate customers to stay in touch with concerned departments of pharmaceutical companies so that they can get real-time assistance from their sales representatives.
• Online presence through social media and website is there for providing any online information, and FAQs (frequently asked questions). Using social media accounts of pharmaceutical companies i.e. on Facebook, Youtube, Linkedin, Twitter, etc. customers can interact with them directly.
• Pharmaceutical companies also enhance customer relations by creating the awareness of their brand through various print and digital medium, and also, build trust by making an effort to provide better products and services.

8. Revenue Streams

  The revenue model of pharmaceutical companies is clubbed in the below chart:

•   Sale of products & services: The main source of revenue of Pharmaceutical companies is through the development and sale of drugs or medicines to different customers in the mass market. Generic drugs, different bulk drugs like antibiotics, steroids, vitamins, along with herbal and biological products, drug formulations, etc. play a significant role in revenue generation of pharma companies. Net profit (in billion Indian rupees) of renowned pharmaceutical companies as of April 2020 in India is shown in the below chart. This profit also includes the revenue earned from the sale of products of these companies.

  Net Profit of Leading Indian Pharmaceutical Companies

As of April 2020

  *(Information Source: Statista.com)

•   Patents: Another important money or profit earning source of pharmaceutical companies is the patent that provides incentives for companies to research and development of innovative and new pharmaceutical drugs. The patent refers to a product’s property right, and in terms of pharmaceutical companies, it is considered as a chemical formula that any rival pharmaceutical company may not copy. A patent gives a guarantee to investors that their product will remain as the only product of its exact type in the market for long years i.e. 20 years. Patents are highly important to pharmaceutical companies due to the great possibility of guaranteed profit. The patent system facilitates companies to gain profit from patents by the mean of restricting any other competitor to market and sell a similar kind of prescription drug or medicine. Also, pharmaceutical companies can fix the high price/cost of their products because of having somewhat monopoly on their drug and absence of any competitive forces in the market that usually are responsible for bringing prices down.
• Research and Development (R&D): One revenue resource of pharmaceutical companies is the R&D factor that has a great significance in the pharma industry because revenue’s major share depends upon research and development. A huge budget is generally allocated to invest in R&D activities by pharmaceutical companies to ensure future profit once a new formulation research process is completed. R&D returns on the private pharma sector are quite attractive as well and very based upon drug type. The companies having the capability of advanced R&D tend to be considered as the most profitable as through their R&D, drugs that have the potential to be highly profitable, can be patented.
•   Strategic alliances: Pharmaceutical companies also earn a small portion of their revenue from different strategic alliance agreements through which products of third-parties are co-promoted by them

9) Cost Structure

Pharmaceutical companies bear different expenses in the development and sale of products & services such as:

• Research & Development cost: R&D is considered as one of the crucial ROI (Return on investment) function of Pharmaceutical companies and so they spend heavily on R&D activities. The study reveals that pharmaceutical companies spend roughly 17% share of their revenues on R&D activities. As per statistics, most big pharma firms have spent around 20% on R&D last year i.e. 2019. The reason behind such a big investment in R&D is that in the process of new drug discovery, it undergoes various testing stages before selling them in the market which is both costly and time-consuming. Also, it costs millions to discover and develop an effective and innovative new drug.
• Manufacturing cost: Another major segment of costing of pharmaceutical companies are expenses involved in the manufacturing process of drugs in different stages i.e. production including the cost of raw material, quality control, quality assurance, regulatory approval, packaging, warehousing, etc.
• Apart from the above two, other cost includes sales & marketing expenses, partnership management, general and administrative expenses comprises of the salaries and benefits to staff, etc.
• B) DEFRAGMENTED BUSINESS MODEL:
• Defragmented business model has a much wider verity of value propositions as it focuses on a particular segment of the drug pipeline. The value proposition attributes in this model depend on the offerings of pharmaceutical companies and a niche market is the center focus of value proposition. This niche market can be a particular category of patients who are suffering from a common disease or pharmaceutical companies that are into the outsourcing business of drug manufacturing, etc. So, the value proposition of the Defragmented business model consists of offerings based upon the niche market and products of high-quality and comparatively low-cost.
• Customer segments include B2B or B2C customers and pharmaceutical companies focus on niche market segments.
• Customer relationship in the Defragmented business model is more personalized that provides pharmaceutical companies to obtain active feedback from customers. Also, through participation in the collaboration process with customers for the purpose of quality improvement in value proposition; companies are able to strengthen customer relations.
• Key resources include both tangible resources such as technology, plants, and Intangible resources like Intellectual capital. Moreover, the staff of pharmaceutical companies is also main resources.
• Key partners can be other pharmaceutical companies and partnership purpose can be customer acquisition, acquisition of knowledge, outsource certain activities, and risk-sharing.
• Key channels are direct and indirect distribution channels.
• The key activities of the model focus on core capabilities such as capabilities related to gain a competitive advantage. Non-core capabilities are outsourced and internal sourcing is there for capabilities that are required for delivering value proposition. Also, pharmaceutical companies who use this model, participate in the business networks for reducing uncertainty and risks.
• The cost structure of pharmaceutical companies in the defragment model is related to the utilization of core capabilities. Both fixed and variable costs are part of it. The revenue is earned through the manufacturing of drugs.

Emerging Business Model of Pharmaceutical Companies

The pharmaceutical companies working on the Blockbuster business model are facing the biggest challenge i.e. expiry of the patent of the blockbuster drugs and a great expansion of generic drugs. Apart from the expiry of patent, other challenges in front of these companies are of deficiency of new product innovations and high cost-margins. This resulted in the diversification of innovative drug manufacturing companies into generic drug manufacturing. The current blockbuster business model of pharmaceutical companies is moving slowly into a focused and lean type business model which is made of small and local R&D clusters. Wherein, the earlier blockbuster business model is focused on more diversified global R&D clusters. So future pharmaceutical companies demand more specialized and defragmented business model with a focus on core capabilities to sustain long-term growth.

The future of the pharmaceutical industry seeks improvement in R&D productivity, cost reduction, to grasp the opportunities of emerging economies, etc. The futuristic approach will even look forward of the collaboration of large pharmaceutical companies with others for the development of more economical and effective new medicines, support patients for health management, and for ensuring the true impact of products and services offered by them. Mainly, 2 emerging business model i.e. Federated and Fully Diversified will support in future prospects of Pharmaceutical companies.

Let’s have a look at these emerging Business models of Pharmaceutical companies:

A) Federated Business Model:

The federated approach includes network creation of separate identities by the companies that consist of a common platform of supporting infrastructure. The different participant companies have a common goal like managing outcomes in the available population of patients. Companies are interdependent with each other as they share data, funds, back-office services, and patient access. This model facilitates a framework for developing a product’s integrated packages and so, it diversifies beyond the core offering of a pharmaceutical company. Each participant in this model is enabled to make a particular segment of expertise, to have a competitive advantage as an outcome of expertise, and to sell its offerings i.e. products or skills, by transferring those activities that are better disbursed by other partner firms of the federation. The federated business model is further categorized into two categories i.e.:

1.a) Federated model’s virtual variant

  In this type of federated business model, the pharmaceutical companies outsource almost all of its operations and the company reflects as a management hub that coordinates the various activities of partners. Several large pharmaceutical companies are already working on this model up to some extent. These pharmaceutical companies acquire external contractors to fulfill their own resources. By outsourcing various activities i.e. manufacturing, marketing & promotional activities, R&D, etc. to 3 rd parties, they can take advantage of specialist skills, wider scope of opportunities, and market access. Doing so, these companies can further focus on other value-addition activities like business development, project management, management of intellectual property, regulatory affairs, etc.

1.b) Federated model’s venture variant

This vertical of federated business model demands an investment in a portfolio of pharmaceutical companies and in return to have a share of capital growth or the intellectual assets, instead of outsourcing specific activities.  Pharmaceutical companies can focus on investing in a specific therapeutic segment or divide them into a number of activities or areas for risk minimization. Once the investment period ends, either the generated intellectual property might be claimed or to give to a 3 rd party via out-licensing. As an alternate, the intellectual property might be retained and commercialized by the original companies and its ROI (Return on Investment) is paid to sponsoring companies.  Different big pharmaceutical companies like Pfizer, Novartis, etc. have venture capital funds at the corporate level.

1.B) The fully diversified model

  In this business model, Pharmaceutical companies expand their horizon from their core capabilities or core business into different related products or services like generics, health management, diagnostics, etc.  This facilitates companies in reducing their dependability on Blockbuster medicines.

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

Judge Tosses Boehringer Bid to Block Biden Drug Price Plan

By Nyah Phengsitthy

Boehringer Ingelheim’s attempt to block the Medicare Drug Price Negotiation Program was rejected by a federal judge Wednesday, handing another win to the Biden administration in the war of lawsuits challenging his signature health plan.

Chief Judge Michael P. Shea of the US District Court for the District of Connecticut denied all of Boehringer Ingelheim Pharmaceuitcals Inc.'s claims that the Biden administration’s program is unconstitutional.

At issue is whether the signature Inflation Reduction Act plan to lower the costs of the prescription drugs Medicare spends the most on is unconstitutional by forcing the company to agree to a maximum fair price for its drug. Its diabetes drug Jardiance was selected as one of the 10 medicines in the first negotiation round .

The manufacturer argued the program violates the First Amendment prohibition on compelled speech, Fifth Amendment due process and takings clauses, Eighth Amendment excessive fines clause, the Administrative Procedure Act, and the unconstitutional conditions doctrine.

“I find that BI’s participation in Medicare and Medicaid is voluntary, even if BI has a considerable economic incentive to participate,” Shea wrote.

“With all the resources at the federal government’s disposal, private corporations will often have an incentive to participate in federal programs. The Fifth Amendment does not prevent the federal government from placing conditions on participation in those programs,” he added.

The Obama appointee went on in the 47-page opinion to say the drugmaker hasn’t been deprived of its “property interest in its confidential data regarding Jardiance,” because BI was not required to turn over any data until Oct. 2, 2023.

Boehringer “had an option to withdraw from Medicare and Medicaid before that point,” he wrote.

As for the drugmaker’s First Amendment claim, a prime argument of other drugmaker and industry lawsuits challenging the program, Shea wrote the “argument finds no support in precedent.”

“Indeed, the IRA requires BI to communicate in various ways, including, arguably, by signing the Manufacturer Agreement and by making a written counteroffer that must ‘be justified based on [the statutory factors],’” Shea wrote. “But as with ‘typical price regulations,’ the words CMS requires manufacturers to use are just an incidental means to CMS’ goal of regulating drug prices.”

Shea also ruled that even if Boehringer could show irreparable harm, it cannot show certainty of success on the merit, in response to the manufacturer’s Eighth Amendment argument.

“BI cannot meet this demanding standard because its Eighth Amendment claim is novel and, so, far from certain,” Shea wrote. “BI has identified no case in which a court has applied the Excessive Fines Clause to a monetary amount that was not connected to criminal conduct or a criminal proceeding.”

The case is Boehringer Ingelheim Pharmaceuticals, Inc. v. United States Department of Health and Human Services , D. Conn., No. 3:23-cv-01103, opinion 7/3/24.

To contact the reporter on this story: Nyah Phengsitthy in Washington at [email protected]

To contact the editor responsible for this story: Karl Hardy at [email protected]

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Supreme Court Jeopardizes Opioid Deal, Rejecting Protections for Sacklers

The justices rejected a bankruptcy settlement maneuver that would have protected members of the Sackler family from civil claims related to the opioid epidemic.

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By Abbie VanSickle

Reporting from Washington

The Supreme Court said on Thursday that members of the Sackler family cannot be shielded from liability for civil claims related to the opioid epidemic, jeopardizing a bankruptcy plan that would have offered such protection in exchange for channeling billions of dollars toward addressing the crisis.

In a 5-to-4 decision, the justices found that the deal, carefully negotiated over years with states, tribes, local governments and individuals, had broken a basic tenet of bankruptcy law by shielding members of the Sackler family from lawsuits without the consent of those who might sue.

The plan for Purdue Pharma, the maker of the prescription painkiller OxyContin, the drug widely considered to have ignited the crisis, was unusual because it offered broad protections that the Sackler family, who controlled the company, had demanded for years even as the Sacklers avoided declaring bankruptcy themselves.

“The Sacklers have not filed for bankruptcy and have not placed virtually all their assets on the table for distribution to creditors, yet they seek what essentially amounts to a discharge,” Justice Neil M. Gorsuch wrote, joined by Justices Clarence Thomas, Samuel A. Alito Jr., Amy Coney Barrett and Ketanji Brown Jackson.

While he acknowledged that the decision left the plan in limbo, Justice Gorsuch wrote that the threat of future lawsuits from opioid victims, states, government entities and others might compel the Sacklers “to negotiate consensual releases on terms more favorable to opioid victims.”

“If past is prologue,” Justice Gorsuch wrote, citing the U.S. Trustee Office, which challenged the deal, “there may be a better deal on the horizon.”

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