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How to choose a contract manufacturer: seven steps to a decision

From requirements through questionnaire, audit and quality agreement to technology transfer: how to select a contract manufacturer for your medicinal product in the EU.

pharmadienstleister.com editorial team · As of 10.11.2026 · How we work

Choosing a contract manufacturer usually commits you for many years, because switching later costs time, a new transfer and, for an authorised product, usually a variation to the marketing authorisation. It is therefore worth approaching the selection in a structured way. The following seven steps have proven useful, regardless of whether the product is a solid dosage form, a sterile product or packaging.

Who needs this
Companies that have their medicinal product manufactured, tested or packaged, in whole or in part, by another company.
Legal basis
Chapter 7 of the EU GMP Guide and § 9 of the German Ordinance on the Manufacture of Medicinal Products and Active Substances (AMWHV): written contract, assessment of suitability and monitoring of the contract acceptor.
Typical process
Requirements, long list, questionnaire, confidentiality, audit, quotation with quality agreement, technology transfer.
What matters
A suitable manufacturing authorisation, a convincing audit and a quality agreement that clearly assigns every responsibility.
01
Define your requirements
Record dosage form, technology, volumes, batch size, special characteristics of the active substance and target markets in writing.
02
Draw up a long list
Collect potential providers and check early whether they hold a suitable manufacturing authorisation.
03
Request with questionnaire
Send the same questions to the shortlisted companies so that the answers can be compared.
04
Confidentiality agreement
Have it signed before you share formulation, process or methods.
05
Audit
Inspect the quality system, premises, equipment, documentation and staff on site.
06
Quotation and quality agreement
Compare total costs and divide the responsibilities of both parties in writing.
07
Technology transfer
Hand over product and process knowledge and validate the process at the manufacturer.

1. Define your requirements

Before you approach the first provider, you should clarify internally what you actually need. This includes the dosage form and the technology required, the expected volumes today and in a few years, the batch size, special requirements of the active substance such as high potency or sensitivity to light and moisture, and the markets for which the product is manufactured. It is also important whether the manufacturer should only produce, or also test, package and have the batches certified by its Qualified Person.

Record these requirements in writing and distinguish between must-have criteria and nice-to-haves. This makes the later steps much easier, because you can measure providers against a common list rather than against the impression left by a single conversation.

2. Draw up a long list

In the second step you collect potential providers, initially without filtering too strictly. Sources include directories such as this one, trade fairs, recommendations from your network and advice from consultants. Check early whether the provider holds a suitable manufacturing authorisation. In Germany it is granted under § 16 of the German Medicines Act (Arzneimittelgesetz, AMG) for a specific site and for specific medicinal products and dosage forms. Manufacturing authorisations and GMP certificates of manufacturers in the European Economic Area can be looked up in the European Medicines Agency’s publicly accessible EudraGMDP database, as can recorded cases of non-compliance with Good Manufacturing Practice. Using your must-have criteria, you then narrow the long list down to a shorter list of the companies you will actually contact.

3. Request with questionnaire

The first request contains a description of your project, as far as this is possible without confidential details, and a questionnaire. A standard questionnaire has the advantage that you can put the answers side by side. Also pay attention to how quickly and how carefully the provider replies. A provider that is hard to reach even at this stage will rarely do better once the project is running.

Questions for the questionnaire
Which manufacturing authorisation is in place, and when was the last inspection by the authority?
What experience is there with comparable products and dosage forms?
Which equipment and batch sizes are available?
How much capacity is free, and how long are the lead times?
Which analytical tests are performed in house?
Which activities are passed on to subcontractors?

4. Confidentiality agreement

As soon as you share formulation, manufacturing process, specifications or analytical methods, a confidentiality agreement should be signed. Many providers have their own templates for this. Nevertheless, check which information is covered, how long confidentiality applies, whether the provider may pass the information on to subcontractors and what happens to the documents at the end. Only on this basis can the provider assess your project precisely enough to make a reliable quotation.

5. Audit

Chapter 7 of the EU GMP Guide requires you to verify, before outsourcing, that the contract acceptor is legally authorised, suitable and competent to carry out the work successfully. The usual means of doing so is an audit, performed either by you or by a contracted auditor. In the audit you look at the quality system, the premises and equipment, the documentation, the handling of deviations and changes, and the qualifications of the staff. For sterile products, questions on cleanroom technology and aseptic manufacturing are added.

An audit is not only a check but also the best opportunity to get to know the people you will later work with. How openly questions are answered and how findings are dealt with says a lot about the future collaboration. Record the result in a report and agree a deadline for remedying any deficiencies.

6. Quotation and quality agreement

In parallel with the audit or afterwards, you obtain binding quotations. When comparing them, look not only at the price per batch but also at the costs for transfer, validation batches, stability samples, minimum quantities, storage and the arrangements for rejected batches.

In addition to the commercial contract, you need a quality agreement. Chapter 7 of the EU GMP Guide and § 9 AMWHV require a written contract between contract giver and contract acceptor that clearly defines the duties of both parties. Under Chapter 7, the contract giver bears ultimate responsibility for ensuring that the outsourced activities are controlled, and continuously monitors the contract acceptor’s performance. In Germany this document is often called a Verantwortungsabgrenzung, a delimitation of responsibilities.

Who does what
The contract describes who carries out each step, for example technology transfer, purchasing and release of materials, manufacturing, in-process controls, sampling and testing (Chapter 7, point 7.15).
Batch certification
The contract giver’s quality system must specify how the Qualified Person who certifies each batch exercises their responsibility (Chapter 7, Principle).
Subcontracting
The contract acceptor may only pass on work after prior evaluation and approval by the contract giver, under § 9 AMWHV with the contract giver’s written approval (Chapter 7, point 7.11).
Records
Manufacturing, testing and distribution records as well as reference samples are kept by or available to the contract giver, including for complaints and quality defects (Chapter 7, point 7.16).
Right to audit
The contract must permit the contract giver to audit the outsourced activities at the contract acceptor and at agreed subcontractors (Chapter 7, point 7.17).
Changes
The contract acceptor must not make unauthorised changes outside the terms of the contract that may adversely affect quality (Chapter 7, point 7.12).

7. Technology transfer

The real work begins once the contract is signed. During technology transfer you hand over to the manufacturer everything it needs to manufacture and test your product reproducibly: formulation, manufacturing instructions, specifications, analytical methods and the experience gained during development. Chapter 7 explicitly obliges the contract giver to provide the contract acceptor with all the information and knowledge required for this. The manufacturer adapts the process to its equipment, the analytical methods are transferred, and validation batches show that the result meets your requirements.

Important
If the product is already authorised, a new manufacturing site for the finished product is a variation to the marketing authorisation that must be submitted to the authority. Clarify the type and scope of this variation early with your regulatory affairs department, because it often determines the schedule of the entire transfer.

For the transfer, plan a joint project plan with clear contact persons on both sides. It is precisely in this phase that you see whether the selection was a good one, because a manufacturer that talks openly about difficulties is worth more during the transfer than one that declares everything to be simple.

Finding suitable providers

You can find contract manufacturers in our directory under Contract manufacturing of solid dosage forms, Contract manufacturing of sterile medicinal products and Filling and packaging. For assessing potential partners before signing a contract, the providers of GMP audits can help you.