How do you prepare any pharma product raw material costing?
I understand the question is for API (Active Pharma Ingredients)
costing. Ensure correct Bill of Materials with quantities &
rates (For Excise Free Zone - add ED / CST + Freight etc./ For
Excise Paid Zone - Arrive Net of Mod-vat rate + CST). Multiple the
quantities with rates arrive RM Cost & PM Cost. Get the actual
yield quantity of batch. Divide the RM & Value by yield
quantity. You will get the cost per Kg / Gram. Add conversion &
packing charges as actual or as per Drug Price Control Order
(DPCO). Add your margin and arrive at the selling price.
You may deduct cost of some recyclable excipients.