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The five critical factors that measure the success or failure of an acquisition are Financial measures, Economic measures, Strategic measures, Exec

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

utive measures and Regulatory measures. Let us see how each of them can give your managers an overview of the acquisition and the implementation. W

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

en you are analysing the acquisition after a period of 6 months you would like to see whether the acquisition has improved the earnings per share (

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

EPS) or return on Investments (ROI).

Have shareholders respected your decision of acquisition in the right spirit by lifting your company's share

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

rice. Are the cumulative abnormal returns (CARs) positive. If you get a positive answer to all these questions then your acquisition has fallen in

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

lace.

The next measure is the economic measure. You need to understand whether the acquisition has delivered in terms of higher efficiency and pro

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

fitability. Has the acquired entity synergised into the parent company and achieved economies of scope and scale. If both of these have been realiz

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

d then the company can translate these into improved profitability with time. The third and a very important measure is the strategic measure.

Has

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

the company achieved the strategic objectives that the top management had set out during the time of acquisition? Among the strategic objectives th

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ere are certain goals that can be quantified and certain ones that cannot be quantified. The goals that can be quantified are EPS, ROI, cash flows,

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

market share and cashflow stability. The factors which cannot be measured are capability and competency acquiring, building foundations for future

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of these fact

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

rs.

The next measure that the company looks into is Executive measure. Have the promoters and the top management gained out of this acquisition. H

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ve they got better bonuses, stock options and a hike in their salaries. There is a psychological factor for the top guns in a company. They expect

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

better benefits, industry standing and prestige as the size of their companies increase. Have these been satisfied. Again if the answer is yes the

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

cquisition is moving in a proper direction. The last measure is the regulatory measure.

If the company has complies to the regulations prevailing

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

n the land. Example may be the anti-trust legislation. Have the company complied with that? When there are large acquisitions these kind of questio

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ns are bound to come up and the management needs to take due care to come up with satisfactory answers. If all or some of the above criterion as me

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

tioned above is satisfied then we can safely assume that the acquisition has moved towards a positive direction fulfilling all or some of the goals

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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What is a package any way? We all know it conveys a product from point A to point B. Besides the obvious of getting it there undamaged or not broken, what's a box supposed to do?

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