How to Open a Pharmaceutical Company
According to the U.S. Department of Labor, as of 2010, the pharmaceutical industry consisted of 2,500 places of employment located all over the United States. Advances in medical technology and the higher demand for natural and alternative medical solutions affects the growth of the pharmaceutical industry. Advances in the manufacturing process are also affecting the industry, with firms looking to improve the drug production pipeline to become more competitive. Opening a pharmaceutical company requires a large investment, sometimes $10 million or more, and compliance with many government regulations and licensing requirements.
Create a business plan. Include the general idea of the pharmaceutical company. Devote additional time detailing where the funding will come from. Since pharmaceutical companies usually need large investments of millions of dollars, the financial projections and estimates should be very detailed and credible. Hire an accountant, a lawyer, and a business professional with experience in pharmaceutical startups. Build the business plan with this team of experts. Include possible distribution channels, promotional plans, an analysis of the competition and break-even analysis. Use the business plan to present the idea to investors and banks to obtain funding.
Recruit talent. Professional occupations in life sciences and physical science have the highest demand in pharmaceutical companies. They usually work in the applied research area of research and development. According to the U.S. Department of Labor, a substantial part of the research and development budget goes towards this type of research and scientists. To recruit the best talent, you need to offer higher-than-average wages and additional benefits. Study the competition to compare salaries and benefits. If you have a pool of talented and accomplished professionals ready to work for your company, it can help you secure funding to start the company.
Set up a location for your pharmaceutical company. Once funding for your company has come through, you should construct or rent a building where you can do chemical research, perform administrative operations and have access to transportation lines such as airports or trains. Work with your scientific talent to create a list of supplies and equipment you will need to start. Hire a laboratory manager to handle personnel and day-to-day operations. Hire business professionals to handle financial analysis reports and to manage daily and monthly budgets.
Apply for and display government and state licenses. You will need building permits, permits related specifically to medical equipment, bio-hazard waste licenses, business permits and high insurance coverage.
Create a marketing team. Hire a team of professionals preferably with experience in the pharmaceutical industry. Develop a plan to target other companies and health providers along the distribution line. Build relationships with clinics and medical establishments. Send them free information about new drugs or research developments, and create radio, TV, and print commercials for new treatments and medicines.
Build a competitive advantage by supplying the growing demand for natural health products and alternative medicine.