3254 - Pharmaceutical and Medicine Manufacturing

The pharmaceutical industry plays a vital role in global health and innovation. When it comes to categorizing businesses in this sector for government contracting, research, or economic analysis, NAICS code 3254 stands out as a key classification. This code specifically identifies establishments involved in the manufacturing of pharmaceuticals and medicines—a crucial piece of the manufacturing sector puzzle.

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What is NAICS Code 3254?

NAICS Code 3254 is defined as Pharmaceutical and Medicine Manufacturing. This industry group includes establishments primarily engaged in the:

• Manufacturing of medicinal chemicals
• Production of biological products
• Preparation of pharmaceutical formulations, including medicinal and botanical products

These businesses develop a broad range of products that improve health and treat diseases, producing everything from basic medicinal chemicals to complex biological therapies.

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Sector and Typical Business Activities

NAICS 3254 falls under the broader Manufacturing Sector. Businesses in this category operate sophisticated laboratories and production facilities to ensure the safety, efficacy, and quality of medicines.

Key Business Activities Include:

• Pharmaceutical Preparation Manufacturing: Producing finished dosage forms such as tablets, capsules, ointments, and injectables.
• Medicinal Chemical Manufacturing: Synthesizing active pharmaceutical ingredients (APIs) and chemical compounds used in prescriptions.
• Biological Product Manufacturing: Producing vaccines, blood components, and biotechnology products from living organisms.

These activities are essential for supporting healthcare systems and pharmaceutical supply chains.

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Size Standards for NAICS 3254

To qualify as a small business under NAICS 3254 for government contracting purposes, the SBA assigns a size standard measured by the number of employees:

• Size Standard: Maximum of 1,250 employees (including affiliates)

This size standard helps determine eligibility for various government programs and contracts targeting small businesses in pharmaceutical manufacturing.

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Examples of Businesses Under NAICS 3254

Businesses classified under NAICS 3254 range from well-known pharmaceutical giants to specialized manufacturers and biotech firms. Examples include:

• Pharmaceutical companies producing prescription and over-the-counter drugs
• Companies manufacturing vaccine products
• Firms specializing in botanical and natural medicine preparations
• Contract manufacturers supplying APIs or pharmaceutical formulations

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NAICS 3254 Code Details

NAICS Code	Title	Sector	Description	Size Standard	Typical Business Activities
3254	Pharmaceutical and Medicine Manufacturing	Manufacturing	Establishments manufacturing pharmaceuticals and medicines, including medicinal chemicals and biologics	1,250 employees	Pharmaceutical preparation, medicinal chemical, biological product manufacturing

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FAQs About NAICS Code 3254

Q1: What types of products are made under NAICS 3254?
A1: This industry produces medicinal chemicals, pharmaceutical preparations (tablets, capsules, injections), biological products like vaccines, and botanical medicines.

Q2: Is NAICS 3254 only for large pharmaceutical companies?
A2: No. Both large and small businesses can fall under this code as long as they engage primarily in pharmaceutical and medicine manufacturing.

Q3: How is the size standard calculated for NAICS 3254?
A3: The size standard is based on the average number of employees over the past 12 months, including affiliates, with a max of 1,250 employees to be considered a small business.

Q4: Can research and development firms in pharmaceuticals use NAICS 3254?
A4: No. NAICS 3254 covers manufacturing only. Research and development activities are generally classified under NAICS 5417 (Scientific Research and Development Services).

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Conclusion

NAICS code 3254 is essential for accurately identifying and categorizing businesses in the pharmaceutical and medicine manufacturing sector. From medicinal chemicals to complex biologics, establishments classified under this code contribute significantly to healthcare advancement and the global economy. Understanding its scope, size standards, and typical business activities provides valuable insight for contractors, researchers, and industry professionals navigating this dynamic sector.

Optimize your business classification or explore contracting opportunities by aligning with NAICS code 3254—your gateway to the pharmaceutical manufacturing industry!