1.Quality Agreements

Parties taking part in contracts for manufacturing of pharmaceutical products sign quality agreements. They specify how every party will adhere to the Current Good Manufacturing Practices (CGMPs). The Food and Drug Administration (FDA) enforces CGMPs or current good manufacturing practices. Supplier and vendor quality agreements specify the conditions governing the calibre of supplies or services provided to a pharmaceutical manufacturing facility. The FDA advises parties involved in contract manufacturing to use quality control procedures. This guidance expands on the recommendations and guiding principles for quality risk management provided in the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH) guidance to highlight important ideas for creating and implementing quality agreements that specify and support contract manufacturing arrangements.

2. License Agreements 

License agreements are contracts between two parties, typically a pharmaceutical lab and a medication firm. The lab creates novel medications and files for a patent on them. The lab then issues a pharmaceutical business with a license to manufacture these medications. This is frequently observed in a market where a laboratory lacks the resources necessary to create medications on a wide scale and instead offers a license to bigger pharmaceutical corporations with sufficient resources to accomplish the same.

3.Product Supply Agreement

The product supply agreement is a legal contract between a seller and a purchaser of drugs or other pharmaceutical products. The agreement’s terms and conditions, as well as the consequences of breaking them, are detailed in the contract.

4.R&D Agreements

Pharmaceutical companies enter into cooperative R&D agreements in which the parties agree to collaborate on the innovative work and subsequent commercialization of a drug.

5.Technology-based contracts

Pharmaceutical companies collaborate with Contract Research Organisations (CRO) and other logical, innovative suppliers, such as biochemical plants. They donate the equipment these businesses require for their labs to conduct research or produce medications. The management of clinical preliminary exams is frequently under time pressure, with the passage of time, particularly in the period leading up to the start of a clinical preliminary, playing a crucial role in the worldwide competition. It should be possible to complete the fundamental agreements between the parties involved quickly, effectively, and with substantial content in order to have the option of beginning a clinical preliminary as early as is reasonably possible. As a result, rules would be useful if they were made available to likely legally binding partners during their specific arrangements. This would lead to an improvement in those arrangements. Model contract clauses give examples of explicit legally binding arrangements that frequently repeat in agreements overseeing the lead of clinical preliminary procedures.

Contracts play a fundamental role in every exchange, whether it’s buying goods and services from suppliers, accelerating the development of pharmaceuticals, managing medical professionals or Contract Research Organizations for clinical trials, or bringing in discounters and Pharmacy Benefit Managers on the sell side.


Intern at Aggarwals & Associates, S.A.S. Nagar, Mohali.


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