What is a Loan Licence in the Pharmaceutical Industry
What is a Loan Licence in the Pharmaceutical Industry If you are planning to manufacture pharmaceutical products without setting up your own factory, a loan licence in the pharmaceutical industry is likely the route you need. This guide explains what the licence means, who should apply for it, the documents involved, and the step-by-step process to get one in India. What is a Loan Licence A loan licence allows a pharmaceutical company to manufacture drugs using another company's licensed manufacturing facility instead of building its own. The licence holder, known as the loan licensee, does not own the factory but is legally permitted to produce and market drugs under their own brand name through the licensor's premises. This arrangement is regulated under the Drugs and Cosmetics Act, 1940, and the Drugs and Cosmetics Rules, 1945, and is issued by the State Drug Controller of the state where the manufacturing unit is located. Why It Matters and Who Needs It Setting up a full-s...