Pharmaceutical Preparation Manufacturing Revenue Benchmarks
The average pharmaceutical preparation manufacturing business in the United States generates $87.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,172 pharmaceutical preparation manufacturing businesses in the U.S., employing 164,345 workers with an average profit margin of 10.0%. The average employee in this industry earns $137K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Pharmaceutical Preparation Manufacturing Business Actually Do?
Pharmaceutical Preparation Manufacturing: Businesses that transform raw materials or components into finished products.
Who buys: Wholesalers, retailers, other manufacturers, and government.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$87.7M
per year
Profit Margin
10.0%
industry average
Revenue / Employee
$625K
per year
Total Businesses
1,172
in the US
Est. Owner Income
$8.8M
small business avg
Labor Cost
18.0%
of revenue
Avg Employee Wage
$137K
per year (BLS)
Market Saturation
0.4
firms per 100K people
How Much Do Pharmaceutical Preparation Manufacturing Charge?
Pharmaceutical Preparation Manufacturing: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the pharmaceutical preparation manufacturing category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Contract manufacturing markup | 15–35% over materials + labor |
Own-brand product margin | 25–60% gross margin |
Custom / low-volume run | 40–150% over direct costs |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete pharmaceutical preparation manufacturing business plan
A 12-section data-backed business plan for a pharmaceutical preparation manufacturing business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the pharmaceutical preparation manufacturing industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Raw materials & components | $50 | $44.2M | Steel, chemicals, electronics, packaging — the physical inputs that become the product. |
Wages & benefits | $18 | $15.8M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $5.0M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $3.2M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $12 | $10.7M | Depreciation on equipment, energy, R&D, quality control, freight. |
Net profit | $10 | $8.8M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.64%
openings/year
Closure Rate
8.58%
closings/year
Net Job Growth
+1.41%
annual
Businesses Closed
198
in 2023
Firm Count Trend
Should You Start a Pharmaceutical Preparation Manufacturing Business?
Startup Cost
$50K – $250K
Break-Even
0 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a pharmaceutical preparation manufacturing business do?
- Pharmaceutical Preparation Manufacturing: Businesses that transform raw materials or components into finished products. Wholesalers, retailers, other manufacturers, and government.
- How much do pharmaceutical preparation manufacturing charge?
- Pharmaceutical Preparation Manufacturing: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the pharmaceutical preparation manufacturing category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average pharmaceutical preparation manufacturing make per year?
- The average pharmaceutical preparation manufacturing business generates $87.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $8.8M per year at a 10.0% profit margin.
- How many pharmaceutical preparation manufacturing businesses are there in the US?
- There are 1,172 pharmaceutical preparation manufacturing businesses operating in the United States, employing a total of 164,345 workers.
- How much does it cost to start a pharmaceutical preparation manufacturing business?
- Startup costs for a pharmaceutical preparation manufacturing business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the pharmaceutical preparation manufacturing industry?
- The average employee in the pharmaceutical preparation manufacturing industry earns $137K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The pharmaceutical preparation manufacturing industry is relatively stable — with a net job growth rate of 1.4%. Entry and exit rates are balanced at 10.6% and 8.6% respectively.
Approximately 64% of pharmaceutical preparation manufacturing businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 198 firms in this industry closed permanently.
Employment & Wages
The average employee in the pharmaceutical preparation manufacturing industry earns $137,404/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 4,662 establishments employing 227,929 people, the typical business has about 49 employees.
Industry Trend (2000–2023)
The pharmaceutical preparation manufacturing industry has grown 51% since 2000 (from 1,377 to 2,086 firms).
See full historical statistics →Compare Pharmaceutical Preparation Manufacturing revenue with other industries: