What are virtual manufacturers in the context of pharmaceuticals?

Virtual manufacturers in the context of pharmaceuticals refer to companies that hold the New Drug Application (NDA) or Abbreviated New Drug Application (ANDA) but do not have their own manufacturing facilities. Instead, they contract the actual production of the pharmaceuticals to third-party manufacturers. This business model allows these companies to focus on research, development, and marketing while outsourcing the manufacturing process, which can be capital-intensive and complex.

This approach is increasingly common in the pharmaceutical industry, particularly among smaller companies or startups that aim to bring new drugs to market without the significant investment required to build manufacturing infrastructure. By leveraging external manufacturers, virtual manufacturers can remain agile and manage costs more effectively, concentrating their resources on other critical areas of their business.

In contrast, the other options represent different roles in the pharmaceutical supply chain but do not adequately define virtual manufacturers. For instance, companies that distribute drugs without owning them act primarily as middlemen, while brick-and-mortar manufacturers run their own plants. Middlemen facilitating drug sales do not own the drugs or the necessary filings required for marketing and selling a pharmaceutical product.