Main Subject - Business

Most businesses accept credit cards and consider the process fees a cost of doing business. H

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

owever by implementing an ACH payment system you can realize dramatic savings and increase

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

Examples of combination products may in

sales.

ACH refers to the Automated Clearing House and generically means moving money electro

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

ically to and from checking and savings accounts. An example would be a check by phone or t

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

king recurring payments directly from a checking account.

The MAJOR difference between ACH a

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

Combination pro

d credit card processing is that a credit card transaction “captures” the merchant’s funds

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

rom the consumer and essentially guarantees payment. An ACH transaction is a request to tra

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

sfer funds. The transaction may reject for several reasons with the most common being NSF (no

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

sufficient funds) or a closed account. The funds are not guaranteed.

It is the guarantee

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

iece that allows the credit card company to charge a percentage of the transaction to cove

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

the risks involved. Typically a transaction will consist of a discount rate, 2.5% for exampl

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

Following aspects would a

e and a transaction fee, typically in the 30 cent range. This means that every $100 process

dd to the challenges in developing combination products:

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

d incurs about $2.85 in merchant fees.

Contrast this with an ACH transaction. Typically ther

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

is no discount rate just a .30 (or less) transaction fee. If you process $25,000 per mont

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

using ACH processing will save around $7500 per year. Certainly you will have more “failed

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

sales due to ACH transaction rejects (eg NSF) but your transaction savings will far excee

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

Professional from academic institutions, pharmaceutical industries, health care indust

these losses. In addition you will appeal to a much wider range of consumers. Estimates va

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

y but MANY people do not have credit cards or are at their limit on their cards. So the bene

.

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

its are two fold-much reduced transaction fees and a new payment vehicle for your customers

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

Companies that provide selfless information through particip

So consider ACH processing for your business. It will save you money and win new customers

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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