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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.
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