Main Subject - Business

On 21st August 2006 the Royal Mail introduced a new system for calculating postal costs. Unlike the previous purely weight-based system, charges now take into account 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 size of the item. Items are classified as one of three formats: letter, large letter, or packet. The format is determined by the size and thickness of the article.

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

Examples of combination products may in

ach format has its own table of weight-band charges. Postal charges are thus a combination of size and weight.

Background

The purpose of the change is t

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

reflect more accurately the costs to the Royal Mail of delivering all items of mail. The size of a mailing item is a more important factor than its weight in determini

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

ng its delivery cost. Large, light-weight, bulky items incur greater sorting, handling and transport costs. The previous system that charged on the basis of weight alo

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

Combination pro

e meant under-charging for large light-weight items and over-charging on smaller heavier ones.

The change is expected to affect only 30% of mailing items and does n

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

t change the cost of posting a standard first or second class letter. Of those items affected roughly half will actually cost less. Overall, the change will be “revenu

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-neutral” for the Royal Mail, i.e. it is not expected to make any additional income from the new system.

Format Specifications

Letter

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

Envelope size less than 165mm x 240mm (C5 or smaller)
Less than 5mm thick
Up to 100g in weight

Includes: most letters, postcar

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

s, bills, statements, most greeting cards

Large Letter

Envelope size less than 250mm x 353mm (B4 or smaller)
Less than 25mm thick

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

/li>

Up to 750g in weight

Includes: A4 letters, CDs, DVDs, most brochures and catalogues

Packet

Larger than 250mm x 353mm

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

Following aspects would a

Thicker than 25mm or

Over 750g

Includes: most books, VHS cassettes, most cylindrical packages,

Weight Band Changes

T

dd to the challenges in developing combination products:

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

e previous pricing structure had 16 weight bands. There are now fewer bands, with each one covering a wider weight range. Each format has its own table of charges. In

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

many cases the charges for letters and large letters are significantly cheaper than the previous counterpart.

What does it mean to you?

The ‘One Price Go

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

es Anywhere’ stamp price still applies to 1st and 2nd class letters up to 100g in weight, and will remain at 32p and 23p respectively.

However, substantial savings 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

be possible if you reduce the physical dimensions of your larger mailing items. For example by simply folding an A4 letter in half so that it fits into a C5 envelope th

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

Professional from academic institutions, pharmaceutical industries, health care indust

cost of postage will fall from 44p to 32p for 1st class, and from 37p to 23p for 2nd class.

Furthermore, whilst the size of the envelope will be smaller, because the w

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

eight bands have been extended, heavier articles can be posted at no extra cost. Therefore, additional inserts can be included without penalty. For example, a C5 envelo

.

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

e weighing 100g currently costs 46p for 1st class delivery. In the future this will cost only 32p, the same as a 60g letter.

In short, plan your mailings carefully to t

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

Companies that provide selfless information through particip

ke full advantage of the format specifications and you will be able to minimise the impact of the system changes and possibly even reduce the overall cost of your postag

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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Why is it that academics the world over are trading in their old profession and training to become plumbers? It is a phenomenon that can be seen all over the world as plumbing is becoming a lucrative trade in most countries. The reason for this is a lack or rather shortage of plumbers, pushing demand higher than the current levels of supply.

So, let's take a realistic look at affiliate programs, what they can and can't do for your business and how to maximize your chances of creating a successful, long-term business with them.

Some people are happy with just a business card. For others it’s not enough to be glanced at once and packed away. They want to be attached to something that you have to open in order to eat and therefore live.

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Main Subject - Pricing in Proportion: An Introduction

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