TOLL AND CONTRACT MANUFACTURING

Toll manufacturing, also known as toll processing or toll production, is a business arrangement we at Compact Pharmaceuticals, Corp. is known as the toll manufacturer or toller, processes raw materials or semi-finished goods on behalf of another company, known as the customer or toller's client. Compact Pharmaceuticals, Corp. provides the facilities, equipment, and expertise to carry out the manufacturing process, while the customer supplies the materials and specifies the desired outcome. Compact pharmaceuticals, Corp. as a Toll Manufacturer charges a fee (toll) for the processing service, often based on the quantity or weight of the materials processed.

B. Contract manufacturing, also referred to as outsourced manufacturing, is an arrangement where Compact Pharmaceuticals, Corp. (referred to as the contract manufacturer or CM) is hired by another company (known as the client or brand owner) to produce goods on their behalf. In this model, the client typically provides the product specifications, formulations, and sometimes the raw materials, while Compact Pharmaceuticals, Corp. handles the actual production process, including manufacturing, packaging, and quality control. The client retains ownership of the intellectual property and brand while relying on the contract manufacturer's capabilities and resources. Compact Pharmaceuticals, Corp. is compensated based on agreed-upon terms, such as unit production costs or a predetermined fee structure.