PCD pharma glossary

Plain-language definitions of the terms used in pharma franchise and sales in India, written for company owners and their sales teams.

By Harish Sharma · Updated 23 October 2026

C&F agent

Also: Carrying and Forwarding agent

A C&F agent stores a pharma company’s stock in a state or region and dispatches it to stockists and distributors on the company’s behalf, usually for a commission. The C&F agent handles warehousing and logistics but does not buy or own the goods.

Larger companies use C&F agents to supply many distributors quickly; smaller PCD companies often dispatch directly from their own warehouse.

CDSCO and DCGI

Also: Central Drugs Standard Control Organisation, Drugs Controller General of India

CDSCO is India’s national drug regulator under the Ministry of Health, and the DCGI heads it. CDSCO approves new drugs and clinical trials and oversees imports, while state drug control departments license manufacturers, wholesalers and retailers within each state.

For a PCD company, the day-to-day regulator is usually the state drug controller, who issues the licences your partners need.

Drug licence (Form 20B and 21B)

Also: wholesale drug licence, DL

Selling medicines wholesale in India requires a drug licence under the Drugs and Cosmetics Rules, 1945. The wholesale licences are commonly called Form 20B and Form 21B, issued by the state drug control department; retail chemists hold the corresponding retail licences.

PCD companies need a partner’s licence details before billing them. Many first-time enquirers, especially medical representatives, are still applying for theirs, so “applying” is a reason to follow up, not to drop the lead.

What to ask a franchise lead

Ethical vs generic pharma

Ethical pharma usually means branded prescription medicines promoted to doctors by a company’s own medical representatives. Generic (trade) pharma means medicines sold mainly to chemists and stockists on price and margin, with little doctor promotion. PCD franchise sits between the two: the partner promotes the company’s brands in their own area.

Franchise enquiry (lead)

Also: PCD lead, franchise lead

A franchise enquiry is a message or form from someone interested in taking a pharma company’s franchise, typically a medical representative, chemist, stockist or distributor. It becomes a party, or customer, when they place their first order.

Enquiries come from lead portals, Meta ads, B2B marketplaces, referrals and the company’s own WhatsApp number or website.

The complete guide to PCD lead management

Medical representative (MR)

A medical representative promotes a pharma company’s products to doctors, chemists and hospitals in an assigned area. In ethical pharma, MRs are company employees; in PCD pharma, many experienced MRs take a franchise to start their own business with a company’s range.

Monopoly rights

Also: exclusive territory, monopoly basis franchise

Monopoly rights give one franchise partner the exclusive right to market and sell a pharma company’s range, or a division of it, in a defined area, usually a district. The company agrees not to appoint another partner for the same range there.

Monopoly is a major reason distributors choose a company, and promising the same district twice damages trust with both partners. Keep one up-to-date record of booked areas.

Cerebyl’s booked-areas map

MRP

Also: Maximum Retail Price

MRP is the highest price at which a medicine may be sold to the patient, printed on the pack. For medicines under price control, the National Pharmaceutical Pricing Authority (NPPA) sets ceiling prices that the MRP cannot exceed.

PCD pharma

Also: Propaganda Cum Distribution

PCD stands for Propaganda Cum Distribution. A PCD pharma company sells its medicines through franchise partners who both promote (propaganda) and distribute the products in their own area, often with monopoly rights, instead of employing its own field force everywhere.

Cerebyl for PCD franchise companies

PCD pharma franchise

A PCD pharma franchise is the arrangement between a PCD company and a partner who buys the company’s products and markets them in an agreed area. The partner typically needs a wholesale drug licence and GST registration, and receives the product range, promotional material and, often, monopoly rights.

Promotional support

Also: visual aids, promotional material

Promotional support is the material a PCD company gives franchise partners to promote its products: visual aids, product cards, catalogues, samples, bags and gifts for doctors and chemists. It is a common point of comparison between companies when a partner decides whom to join.

PTR

Also: Price to Retailer

PTR is the price at which a chemist (retailer) buys a medicine from the stockist or distributor. The difference between MRP and PTR is the retailer’s margin.

PTS

Also: Price to Stockist

PTS is the price at which a stockist or distributor buys a medicine from the company. The difference between PTR and PTS is the stockist’s margin. In PCD, the rate offered to a franchise partner is the key number they compare between companies.

Stockist and distributor

A stockist or distributor buys medicines from pharma companies, holds stock and supplies chemists, hospitals and smaller sub-stockists in their area. They need a wholesale drug licence. Many PCD franchise partners are stockists adding a new company’s range.

Third-party manufacturing

Also: contract manufacturing

Third-party manufacturing is when a pharma company gets its products made by another licensed manufacturer and sells them under its own brand. Many PCD companies market products made by third-party manufacturers instead of owning a plant.

Cerebyl for third-party manufacturers

WHO-GMP

Also: WHO Good Manufacturing Practices

WHO-GMP refers to a manufacturing unit following the World Health Organization’s Good Manufacturing Practice guidelines for quality and consistency. In India, WHO-GMP certificates are issued by the drug regulators after inspection, and PCD companies often mention them to show their products are made in a quality-controlled plant.