As part of the business plan, local production contracts (facilitating drug registration processes and developing local brand names, linked to each partner company) are made today in the Royalty Agreement model with our local partners. In other words, BONAIRESWISS A.G., the holder of the patents for those products, gives production and market rights, in a limited area of the worldwide market to a contracted partner.
It is part of the medium-term project that all of the Royalty Agreement be changed to FOB model commercialization contracts. What would comprise the sending of a homeopathic concentrate (raw material) at a point of dilution that does not require major logistical transport efforts, but at the same time guarantees the existence of a commercial product of interest and adequately regulated and documented for the international process of export and import of homeopathic compounds.
A – Current marketing model
In this model, BONAIRESWISS A.G., holder of the patent to produce the homeopathic medicines described in this project, grants, by contract, the right to large scale production of its products to a company, so that it can explore the local market.
According to the contract, BONAIRESWISS A.G. (in the person of its responsible technician) produces, in the customer’s laboratory or industry, the number of bottles demanded by the contracting company. At present, BONAIRESWISS A.G., to facilitate logistics processes and, given the high demand for production, produces the raw material in the customer industry and gives it to storage. The client company passes dilute it and market it according to your demand. It is also possible to hold the production know-how of the concentrate by the contracting company itself. But, there is no current contract in this model.
In this marketing model, BONAIRESWISS A.G. keeps its current business model in active operation. But, instead of directly marketing the product, it gives this right to its customer, for production and commercialization, and control sells and the quality of productions.
This form of business is the group’s greatest interest now, due to the low investment and the obvious shift of responsibilities on production and marketing success.
B – Model that will be implemented from March 2019
The registration of the company with SwissMedic, enables BONAIRESWISS A.G. as a producer and exporter of homeopathic products. Also, without the records of the final products, it will not be possible to immediate market the finished products. But the qualification allows the export of RAW MATERIAL (concentrate), the basis of the final products, from Switzerland. Increasing the security of customers and suppliers, bank transparency and added value to the product.
In April 2019, with the registration of the products, and having GMP’s contract with OMIDA, from Schwabe Group, it will be possible for BONAIRESWISS A.G. to produce its Homeopathic Complexes on Swiss soil and sell it in that territory. The expansion into the European and American markets, take hostage of time and investment capacity.