Toll manufacturing

By Allianz Biosciences  |  on February 25, 2023

Toll manufacturing for pharmaceuticals is a process in which third-party companies, known as contract manufacturers or tollers, produce drugs, drug components, and nutraceutical preparations for larger pharmaceutical companies. This approach to drug manufacturing offers numerous advantages that make it an attractive solution for many big pharma companies.

To start, toll manufacturers provide the advantage of expansion capabilities, allowing the contract manufacturer to quickly and efficiently scale production up or down to meet unexpected changes in demand. Because contract manufacturers are separate companies, they can also provide a backup solution for a pharma company’s own manufacturing operations, allowing for a quick response to any unplanned outages.

Another benefit of outsourcing to a contract manufacturer is the expertise and knowledge that they bring to the table. Many tollers specialize in specific areas, such as probiotic manufacturing, so having the right manufacturer on board can help the pharmaceutical company launch their product faster and with greater accuracy.

Toll manufacturing also has some financial benefits. By outsourcing production to a toller, companies can minimize capital investments that would be required if making the products in-house. Furthermore, because tollers receive their raw materials in bulk and have existing relationships with suppliers, they can often get better deals on materials than the companies buying them directly.

In short, toll manufacturing is a great way for pharmaceutical companies to increase efficiency while controlling costs. By partnering with the right toll manufacturer, companies can benefit from increased production capabilities, access to specialized expertise, and lower input costs.