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You can construct an almost infinite variety of calculators right within your MS EXCEL spreadsheet application.

Here is ho

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

w you can construct your own 10-year compounding interest financial calculator that would help you to see, for example, how

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

Examples of combination products may in

much your $100 will grow at x percent of interest a year, on a year by year basis.

1) Launch a clean worksheet in

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

Excel.

2) Reserve the cell A1 for your principal dollar amount. Think of this as your “deposit” in the bank.

3)

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

Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8, etc).

4) In c

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

Combination pro

ell C1, enter the following formula into the text input bar just above the spreadsheet and then click the green check-box i

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

con to save the formula into cell C1:

=A1 + ((A1/100) * B1)

This formula will take the amount you enter into cell A1, div

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

ide it into 100, and then multiply it by the annual interest rate B1, and then add it to the original A1 amount to give you

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

the total COMPOUNDED amount at the end of year one. For example, for $100 of deposit (A1) at 5% a year (B1), the C1 value

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

should be should be $105.

Now here comes the exciting part.

5) Click and select cell C1 so that Excel should displ

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

ay a black rectangle around the cell. When you bring your cursor to the lower right corner of the cell, your cursor should

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

Following aspects would a

turn into a dark and slim plus sign (“+”).

6) Click and drag the cell C1 down as many cells as you want along the C

dd to the challenges in developing combination products:

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

column. This automatically copies the formula in C1 to all the other cells – but not perfectly. Now you need to adjust eac

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

h formula slightly.

If you click on the unadjusted cell C2, you will see the following formula:

=A2+((A2/100)*B2)

7)<

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

/B> Change this by replacing all “A2”s with “C1” because you would like to have the C1 amount get compounded, not the amoun

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

t in A2 (which is empty).

So the correct formula for C2 becomes:

=C1+((C1/100)*B1)

Similarly, the correct formula for C1

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

Professional from academic institutions, pharmaceutical industries, health care indust

0 becomes:

=C9+((C9/100)*B1)

Now your calculator is ready for testing.

Plug in 100 for A1 and 5 for B1 and you’ll

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

have $162.8 dollars at the end of 10 years.

What if the interest rate went up by one percent to 6%? Change B1 to 6 and yo

.

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

u will have $179 dollars at the end of 10 years.

You can easily stretch this calculator to 20 or 30 years by adding the ne

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

Companies that provide selfless information through particip

cessary additional rows to column C and adjusting the formula for each cell accordingly, as explained above.

Happy savings

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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Digg It - EXCEL Tutorial - How to Construct a Compounding Interest Financial Calculator

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