Understanding the Basics of PCD Pharma Franchise and How It Works

The Basics of PCD Pharma Franchise and How It Works – In A PCD Pharma Franchise, the business model, a pharmaceutical company gives an individual or a group the right to sell and distribute the product in a restricted and exclusive geographic area. The products are supplied by the parent company along with the promotion in many cases, whereas the local sales, promotion, and channels to the doctors and retailers are carried out by the franchisee.

Income to franchisees is in terms of profit on sales, and this can vary between 20% and 50%. A PCD Pharma Franchise is one of the emerging industries in India and has numerous prospects for businesspeople or the ones that are ready to establish their pharma franchise in their region.

An Overview of PCD Pharma Franchise

PCD pharma is a business model that consists of the sale of the therapeutics as per a franchise deal between the parent company and the distributor. It means propaganda cum distribution, which is distribution at the parent company without the participation of the field team. This is the complete opposite of the ethical and generic chain of pharmaceuticals model of business. Promotion of the drugs in the ethical model is conducted through the parent company’s field team, the term used here is medical representatives, and there is no brand name associated with the generic medicines; therefore, they do not need promotions.

How Does It Work?

• Agreement and Monopoly: the parent company grants the exclusive rights to the franchisee in a certain territory, that is, no other franchisee of the same company could offer this type of business in this territory.
• Roles and responsibilities:
  • Parent Company: It deals with product manufacturing, quality, and supply chain management. It also offers marketing resources and promotion.
  • Franchisee: This is the one that does the local sales, marketing, and distribution of the products. This will involve product marketing to the doctors, pharmacists, and other health practitioners.
• Profit and earnings: The profit of a franchisee is comprised of the product sales margin. One major thing would be to ensure the doctors prescribe the medicines of the company, which will result in long-term, repetitive revenues.
• Target-free business: The PCD franchise is not usually tied to sales quotas, as compared to a few other models.

Monopoly and obedience: The franchisee would be allowed to do business within the confines of the given territory. The franchise agreement may be canceled in case products are sold outside this area.

How to select the Right PCD Pharma Company?

The first step to start with the pharma franchise in India is to select the right PCD Pharma Company to jump-start your venture. To do so, you need to find a reliable and trusted pharma company that has a reputable brand name for many years in the pharmaceutical industry. You can check their certifications, such as ISO and WHO-GMP Certification, which ensure that the company focuses on the quality and safety of the products. Also, choose a locality where there is low competition yet higher demand for pharmaceutical products, and for that, you need to check whether any other franchise has the monopoly rights of the same parent company.

Once you check all this, do some research about the company portfolio and check what the other facilities do they provide to their franchisee. Key considerations such as promotional support, reliable delivery of products on time, help to expand your business outside the local market this all of which are mentioned in the agreement. After getting an agreement from the parent company and a drug license then you are eligible to sell the pharmaceutical products in your region.

Conclusion

PCD Pharma Franchise is a franchise business model in which it sells the franchise rights to the business houses, which would then set up their PCD Pharma under the name of the parent company. In this case, the parent company grants permission to the franchisor to market the pharmaceutical products with the name of their brand name. It assists you in setting up your own shop within your local market.