Pharmaceutical Toll Manufacturing Agreement

Some companies try to thwart those who might try to abuse intellectual property by using different manufacturers to create different parts. For example, a company may manufacture a machine engine in one facility, electrical circuit boards in another and the case in a third plant. But even for the protective layers, the product and the company that makes the product are better protected by a toll manufacturing agreement, even if the company needs different manufacturing facilities. This is how a toll manufacturing agreement must work: the promoter transmits its raw materials or semi-products to an external service provider. The service provider, with its equipment or infrastructure, makes available a subset of manufacturing processes for a fee – or a toll. Alternatively, your design can be improved. In the absence of an agreement that preserves your intellectual property right in improvement, the manufacturer or employee could take the improved design and create a better widget. In the end, this can result in the complete loss of your business. Toll manufacturing agreements benefit companies because they do not need to create a plant or invest in the equipment needed to bring the idea or product to life. By using an external manufacturer, the company has the freedom to adapt the product as it deemed appropriate.

The company pays the manufacturer a „toll“ for the privilege of using the manufacturer`s employees, equipment and facilities. While sponsors are looking for ways to accurately manage drug discovery, some are looking at toll manufacturers. Toll manufacturers, such as pci Synthesis, essentially provide the laboratory, production facility and scientific knowledge needed to process a sponsor`s compounds or half-products and distribute active substances (APIs) in kilos. But in reality, it`s not that simple. The production of drugs is not as simple as the development of an industrial chemical. And the process is rarely simple. In some cases, the proponent makes processes available to the toll manufacturer that simply do not work. In other areas, the sponsor`s analyses are not transferred to manufacturing. A toll manufacturing agreement protects the company with the product design from the theft of trade secrets or intellectual property. In addition, it prohibits the manufacturer from using the product design to confront them. Finally, a toll manufacturing agreement limits the manufacturer`s staff and contractors in order to protect trade secrets or intellectual property.