Digg It - Business

The old saying 'You have to spend money to make money' can be a dangerous one. Every business has it's costs, but not every business owner takes t

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

he time to distinguish between what is an essential expense, and what is a 'nice to have' expense.

And on top of needless expenses, businesses ca

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

Examples of combination products may in

also lose potential profits through poor management processes and techniques. So let's have a look at 5 of the main culprits which contribute to

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

lost profits and reduced success:

Overheads

Limit your overheads to 10% of your sales. If your overheads are significantly more than 10%,

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

some options may include:

reducing office size

removing unnecessary travel - try phone or video conferencing

stop trying to impress with an ex

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

Combination pro

pensive fitout

overstaffed - look at employee numbers and positions

consider what you spend on office supplies - these are often 'nice to haves'

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

High inventory levels - insufficient purchasing controls

Advertising costs - what are you spending and what return are you getting?

Employe

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

e and Management Issues

Happy employees work more effectively and productively. If your employees are unhappy then their performance is impac

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

ing on the potential profits of the business. What to look out for:

staff performance - keeping unproductive employees

nepotism - hiring family

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

and paying them too much

unskilled employees - training not provided, no opportunities

poor morale - salaries, working conditions, benefits

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

rocesses and Systems

Failure to update processes with technology can leave you out in the cold with your customers and suppliers. Older techn

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

Following aspects would a

ology becomes obsolete and is no longer supported by the supplier. Do you have:

old or no technology - processes take longer and are prone to err

dd to the challenges in developing combination products:

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

rs

up to date communications - email, web enquiries, voice mail, email you can check wile away from your office

the right management information

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

- are you collecting and useful data

Cash Flow

Cash is king. More businesses fail due to cash flow problems than anything else. These sy

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

tems must be failsafe and monitored on an ongoing basis:

acounts receivable - collections must be on time

payment terms - don't create a situati

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

on where you provide the service now and customers pay later

credit losses - from poor credit approval processes

pricing - not charging enough f

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

Professional from academic institutions, pharmaceutical industries, health care indust

r what you do/sell

Not enough Planning

Lack of an articulated plan can lead to poor (and costly) decisions:

long and short term goals no

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

t articulated - business lacks direction

employees not engaged - not involved, don't contribute, no ideas

decisions are ad-hoc, and not taken wi

.

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

h the bigegr picture in mind

How does your business fare against some of these profit drainers? Are you spending money needlessly, or on items th

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

Companies that provide selfless information through particip

at aren't adding value to your business? There is always room for improvement when it comes to profit: spend carefully, save easily, invest wisely

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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