A contract manufacturing agreement for medical devices establishes a service arrangement between a medical device company and a contract manufacturer. The purpose of this agreement is to set the terms of the device’s production, yearly quantities, pricing, quality standards, and delivery.
When a business is looking for a manufacturing agreement for a medical device, key facilitators approach various contract manufacturers that specialize in medical devices. Then, providers quote bids on the costs based on labor, tooling, and materials. After the bidding process, the client selects their contract manufacturer (CM).