To have own plant or contract manufacture?

I just met a potential client who has only one product and desire to build a GMP Plant. He's dammed surprise to hear the cost and hardship that will face him. Then, why can't he just contract manufacture...?

Always this is the dilema faced by a product licensed holder who is new in this field. Constructing a GMP plant is not as simple and cheap as a 'normal' processing plant, say for a food industry. The construction materials used, the finishing, utilies, equipment and system controls will not make it easy for you.

So, unless you do have solid grounds on having your own GMP plant, or have adequate sales volume, then only having your own GMP plant will make sense.

If not, go for contract manufacturing dear..... there are many GMP manufacturers out there who are eagerly waiting for this job, some to make up for their unused capacity they possessed and others to cover their operational expenses!

A smart businessman will start with having his products established first in the market, get the sales volume to build up, by just contract manufacturing all his products. He will have no headache on the plant investment, maintenance and operation - just concentrate on marketing and sales! How good can that be...

But on the bad side, my client told me that his formula can be copied. Yes.... that's partly true if the contract manufacturer has low ethics value and professionalism. However, why worry....? someone can have the same product from other source too. You can now have well known brand being copied easily, which I think is far worse than having someone 'copied' your formula and with a different name.

The previous company I worked in had their saleable product copied by someone. Almost all aspects of the product are the same, except for the product name. But yet, the product can't sell as well as the 'original' product. The aggressive marketing strategy makes this product hold well in the market.

So, my advice to those 'small volume' product owners, do away with having your own GMP plant for now. Look for a good cintract manufacture, wirk with them and make your money first. Once you have enough sales figure, then do come to me on how you can set up your own GMP plant.!

Adios!