Main Subject - Business

What should you be concentrating on, generating more sales, or reducing operating costs? Actually, the ideal

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

is to do both simultaneously. The only way to make profits, is to increase sales and reduce expenses. Natu

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

Examples of combination products may in

ally, when it comes to “marketing,” most people immediately think of generating sales; and that’s good. But

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

there are other aspects to marketing that can be managed better and result in the same goal—profits.

When

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

t comes to cost savings, there are many ways to cut costs: pricing, purchasing, shipping, long distance/cour

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

Combination pro

ers, reduction in time spent on mundane activities, and many others. Let’s say you were able to reduce your

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

operating costs by 10%. Additionally, let’s assume this amounted to $10,000. Where does this ten grand go?

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

t flows straight to the bottom line: ‘net profits before tax’.

[You can even find ways to reduce your taxes

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

] Now let’s take a look at the other side of the coin: generating more sales. Assume that your profit on eac

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

h additional dollar of sale is also 10%. For every extra $100 thousand in sales (on the top line), you gener

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

te $10,000 on the bottom line. If your average sale is $2,500, how many extra units do you have to sell to

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

Following aspects would a

arn that extra $10,000? You have to sell an extra 40 units at $2,500 each, in order to equal the same

dd to the challenges in developing combination products:

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

savings you earn by reducing your existing costs by 10%. What if the incremental costs to achieve this

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

$10 grand in extra profit (through cost-savings) is also $2,500, the selling price of one unit. Would you sp

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

nd an extra $2,500 to earn at least $10,000 in pure bottom-line profit? Sure you would!

How easy do you th

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

ink it will be to increase sales or reduce costs? Really it’s a no-brainer. Generating that extra 40 units

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

Professional from academic institutions, pharmaceutical industries, health care indust

is not going to be a piece of cake. Marketing, advertising, selling and servicing the customer are time-cons

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

ming, difficult tasks. If they weren’t, we’d all be rich. But going through your existing operating system a

.

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

nd seeing where you can trim the fat –or use new technology, for example — takes less effort, time and relat

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

Companies that provide selfless information through particip

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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Attracting and retaining a high performing team is one of the biggest challenges many business owners face. There are a variety of reasons for this and one of the key factors is that the owner doesn't realise that there's much more involved in the process than just placing an ad and asking a few questions.

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Even though all of your clients are different they all want the same things from the companies that serve them. Davis, Kingsley & Company has conducted hundreds of interviews and there are four strong themes that always emerge...

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