Main Subject - Business

Within the corporate world, there are the ‘living dead’, which are the sick companies that go on a wretched existence, without any hope of turnaround. These companies need a miracle such as a resurrection from the dead. Many of these companies need a cha

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

nge of DNA or business models. They are technically commercially insolvent and the owners will face the fate of bankruptcy if they close down the operations. Therefore, these ‘living dead’ just hang around, waiting for the death sentence. For some, the

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

Examples of combination products may in

death sentence may take years before the owners decided not to throw in good money anymore to chase after bad money. For others, the bubble keeps getting bigger such as the construction companies in Singapore that continue to clinch loss-making project

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

to cover up for the earlier losses.

Some of these ‘living dead’ are large companies with huge amounts of bank debts. However, the banks are unwilling to wind up these companies, as some one said: When you owe the bank lots of money, you owe the bank.

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

These banks may go under together with these “living dead’. Therefore, these living dead are allowed to survive in the short term. An example is Donald Trump’s corporate empire that went into massive financial difficulties in the 1980s. He owed the ba

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

Combination pro

nks a lot of money then and the banks were unable to press the trigger to stop the flow of credit as they would be dragged down with him

If companies are caught in such situations, the owners have to take some tough decisions to get out of this quanda

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

y. It is important to know when to exit. An optimised exit is one of getting out of non-core or under performing businesses, where there is a loss of confidence in the management and further losses and declining profitability are expected. Removing suc

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

under-performing assets can free up capital for investments in the core businesses

If you are able to optimise your exit, then it is no longer perceived as organisational failure but rather unlocking of your values. Optimised exits should be made strat

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

gically rather than be done out of desperation. This is because when it is done out of desperation and panic, quite often the value of the company is diminished. Successful exits require a lot of planning and can maximise shareholder’s value, minimise

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

cost, liability and disruption as well as enhance the value of the enterprise.

Optimised exit is necessary for many ‘living dead’. For some it may mean cleaning the “deck” prior to an acquisition or integrating a large acquisition that included non-core

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

or unprofitable assets. For others, the business model needs to be revamped with the market changes. The management needs to be able to bail the company out of the dire situation and scarce resources need to be re-deployed elsewhere for better returns.

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

Following aspects would a

For some others, it may be a case of the shareholders and owners getting tired of the business and deciding to move on to do something else.

There are various channels to bail the company out. One way is to sell the business as an ongoing concern. Ano

dd to the challenges in developing combination products:

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

her way is to attempt to turn around the company from financial losses before disposal. If the company has a grim chance of turning around, it is better to close the company immediately, cut losses and move on. There is nothing to be ashamed about with

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

your company going bust. Many successful entrepreneurs suffered failures in their earlier ventures. They are able to make subsequent comebacks. It is better to bite the bullet, avoid bankruptcy and recoup the losses and to fight another day than to be t

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

tally dragged down to the bottom because of trying to save a hapless situation.

Usually, it is difficult to get a good price or premium when selling a troubled company. Many acquirers try to avoid buying a loss-making enterprise like a plague. They will

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

find it extremely difficult to convince their shareholders to undertake the risks of acquiring a loss-making enterprise. For instance in China, some loss-making and state-owned enterprises are offered for sale at one dollar without acquiring the past l

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

Professional from academic institutions, pharmaceutical industries, health care indust

abilities. Yet, there are few takers. You never know the full liabilities that you can be buying into. In Singapore, some businesses are conducted at a loss. The high rental overheads, expensive manpower staffing, etc, have eroded all the profits. Howe

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

ver, many entrepreneurs felt trapped and reluctant to shut down their business as they will have to proceed with bankruptcy procedures immediately. However, any delay in closing down such businesses can dash any hope of recouping the losses.

There are

.

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

some points to consider before you embark on saving the company. Is it worth the pain and effort? Do you want to keep it going by throwing good money to chase after bad money? Therefore one needs to ask whether one’s company is worth more dead than ali

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

Companies that provide selfless information through particip

e? If it is much like a vampire, neither dead nor alive but living on the nutrients and sustenance of the living blood, then it is time to drive a stake through the heart and relieve the misery of the ‘living dead’. It is worth more to be dead than alive

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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If you find yourself drawn to the science field and you enjoy technology as well, you may be interested in a career in the biotechnology field.

Just like any good long-term relationship needs work so does a good long-term career. It may be that you are one of a lucky few who bounce out of bed every morning excited and happy leaping out the font door and into the office for another passion filled day of corporate bliss. But for most people a good steady reliable career is about peaks and lows. And lets face it if it was not for the lows points how could we appreciate those career ups. It is just that the more high’s and the less lows the better. So next time you are having a career low follow our tips to re-ignite your career spark.

In IT and still receiving mixed signals about the state of the technology job market?, well it seems that the term 'cautious optimism' finally carries some weight...

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