How PCD Pharma Products are Changing Healthcare Industry?- The Propaganda Cum Distribution (PCD) is a pharma franchise distribution model where a parent pharmaceutical company grants permission to individuals or a company to promote and distribute their products in their territory under their brand name. The monopoly right granted by the parent company helps franchisees take control of the market without internal competition from other distributors within the same company.

Current State of Pharmaceutical Franchise Distribution

According to the India Brand Equity Foundation (ibef.org), India is the 3rd-largest producer of pharmaceuticals by volume and the 14th-largest by value. It showcases that the heavy demand for pharmaceutical products has driven this industry to grow at a CAGR of 9.43% over the past nine years. It contributes around 1.92% to India’s GDP, which clearly shows how much the pharmaceutical industry has evolved.

How does the PCD Pharma Model Work?

• The parent pharma company manufactures pharmaceutical products, and to promote them across the country or to widen their distribution network, they offer their franchise partnership to individuals or companies.
• The franchisees sign the territory-based agreement for the branding and distribution of their medication.
• The PCD partner works on branding and selling their products in the local markets by distributing to the pharmacies, clinics, or patients.
• The monopoly rights, minimum order quantity, marketing support, and promotional materials supplied by the parent company help the PCD partners to make a strong presence in the market, which ultimately boosts sales and provides long-term growth.
• The ease of entry for entrepreneurs and the lower capital intensity made it easier for them to grab such opportunities to full-scale pharma ventures.

How PCD Pharma Products are Transforming India’s Healthcare Landscape

1. Improved Access to medicines 

• The territory-based distribution has widened the network through local distributors, which bridges the rural and urban divide to make it easily accessible to smaller towns and villages, significantly improving access to the underserved population.
• Some of the product segments that are commonly distributed via PCD include generic, OTC, and specialized therapeutic segments like nephro, uro, cardiology, and anti-diabetics.
• This affects the distribution network by making a shorter supply chain, more stocked local chemists, and faster availability during shortages.

2. Affordability & Competition

• Due to higher competition among different pharma franchises, it often leads to lower retail prices.
• There is a big role of local procurement and smaller distribution in reducing the price of the medicines. Their overhead impacts the costs of the products, and ultimately, it gets reduced.
• The price-sensitive segment helps patients or customers to easily access the products at an affordable price.

Enabling entrepreneurs & local employment

• The pharma manufacturers offer immense opportunities for entrepreneurs, small distributors, medical representatives, and local promoters. 
• It creates job opportunities for sales representatives, delivery personnel, and field marketing.
• A great place to kick-start in the pharma industry for women entrepreneurs and small-town business owners.

3. Expanding product diversity & niche therapies

• Brands often launch new products or specialized formulations in the market that boost sales growth
• The increased awareness among the customers and the prescribers made it more vital for every brand to introduce diverse products in the market to get more market presence and trust.

Quality, Regulation & Trust

• The quality measures are the most important priority of every healthcare industry. 
• The ISO, WHO-GMP, and regulatory bodies make sure that the product's quality matches the industry standard so that patients can use these medications without any side effects.
• Many pharmaceutical companies are consistently working on innovations to enhance the quality even more and to bring new products to the market to meet the patient’s needs.

Supply Chain Resilience & Localized Response

• The strong and reliable distribution network makes the delivery of products smoother, and it ensures the availability of products whenever there is a shortage in the market.
• The decentralized supply chain ensures that the medicines are available on demand, especially during any natural disasters or pandemic-like situations.
• This has made it more feasible for the patients to access the medications on time and which is a game-changer in the healthcare industry.

Future Outlook of PCD Pharma Products in India

The future of PCD Pharma products is quite promising and result-driven, which can be shown by the following factors:

Government support: The government of India has strengthened the healthcare industry by promoting various medical policies. They focus on regulations, monitor quality and pricing, to ensure quality and affordable medicines across the country.
Growing Healthcare Market: The Indian healthcare market is substantially increasing due to the growing population, rising healthcare awareness, and an increase in chronic diseases.
Geological expansion: The increased demand for pharma production will continue to expand its reach to the untapped markets.

Conclusion 

The rising demand for pharma products has shown extensive growth in the Indian healthcare industry. It also plays a crucial role for the contribution in the country’s GDP, as the government's support has played a crucial role in boosting the demand for pharma products.