How do you prepare any pharma product raw material costing?

Answer 1

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.

Answer 2

To prepare the costing for a pharmaceutical product raw material, you would typically calculate the cost per unit based on the quantity of raw material required for the product formulation, including any associated processing or handling costs. This cost per unit is then multiplied by the total quantity needed for a production batch to arrive at the total raw material cost. It's important to consider factors like sourcing, quality, and any additional expenses like transportation or storage.