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HONG KONG DRUG LICENSING

As a licensed “manufacturer”, may I outsource some manufacturing operations, such as quality testing, to another licensed institution?

A complete explanation of the regulatory basis, Drew Tang’s recommendations and risk alerts. The original material dates from 2025; read it alongside the latest official requirements.

Original guide, 2025 edition: These FAQs are provided for topic-based reference and have not all been individually checked against current rules. Please confirm fees, personnel, renewal, changes and product requirements against the professional in-depth guide for the relevant licence type and the official requirements in force at the time.

Drug Office, Department of Health Chinese Medicines Board

Q89 · Category B: Licence types and scope of application (Q51-Q100)
Yes. This is very common in the pharmaceutical industry and is known as “contract manufacturing” or “contract analysis”. As a licensed manufacturer, you may outsource one or more steps in the manufacturing process, such as raw material testing, intermediate product manufacturing, finished product testing, stability studies or packaging, to another organisation that also holds a valid manufacturer’s licence and has the relevant GMP capability (the “contract acceptor”). However, as the party that places the product on the market (the “contract giver”), you remain fully responsible for the final quality of the product.

📘 Regulatory basis

Chapter 7 of the GMP Guide, “Contract Manufacture and Analysis”, sets out the responsibilities and obligations of both parties to a contract in detail. The key document is a comprehensive “Quality Agreement”, which must clearly define each party's specific responsibilities for production and quality control.

📗 Drew Tang's recommendations

Before selecting a contract partner, you must conduct rigorous qualification checks to ensure that they can meet your quality and regulatory requirements. It is essential to draft a robust quality agreement setting out in detail all relevant matters, including how materials will be transferred, how records will be handed over, what the inspection criteria are and how deviations will be handled. We can assist you with supplier audits and drafting quality agreements.

📕 Risk notice

Outsourcing does not mean outsourcing responsibility. If your contract laboratory issues an incorrect test report that results in a batch of non-conforming products being released to the market, you, as the commissioning party and final AP, may bear primary legal responsibility. You must therefore retain the right to supervise and audit the contractor.

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