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Most Investors have no read idea what to do with their money and that’s why fund managers and loads of investment instruments have sprung up to cater to this need

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

by the market for “return on investment”. Real Estate Investment Trusts or Asset Securitization which is the legal term of art used to describe the phenomenon of

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

Examples of combination products may in

convert asset cash streams into tradable securities and selling them to investors.

This article after a short explanation about REITs, reveals two dirty little se

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

crets that Property Developers play on unsuspecting REIT investors.

Asset Securitization as it is known in the legal industry in its Non-Enron form is legitimate

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

due to the lower cost of raising funds. Property Developers take the chance to put their best properties into the REITs at the start as it would be cheaper for th

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

Combination pro

em to raise funds when compared to getting loans from the Bank which would increase their debt and reduce the credit rating for the company. These property develo

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

pers having effectively sold their properties away, then manage the same properties through their management companies and charge fees. They then take the money t

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

o develop and purchase other properties and their capital gets bigger and bigger.

What most REIT investors are not aware of is that, some unscrupulous Property De

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

velopers start sneaking in their underperforming assets into the REITs so as to get rid of property duds and the investors in the REITs end up getting poorer retur

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

ns on their investments. This can diminish your returns substantially.

For example, in Singapore which has one of the most thriving REIT markets in Asia, there w

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

s talk that some of the worst properties almost being sold into one of the REITs, before someone intervened to stop this trend. Investors should therefore take mo

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

Following aspects would a

re than a perfunctory glance at the Annual Reports and Market Announcements concerning the REITs that they are invested in.

Another thing that most investors are

dd to the challenges in developing combination products:

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

unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investm

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

ent and reasons why you should invest in it and the risk factors that any reasonable investor should note when purchasing units in the REIT.

For example, there wa

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

s this REIT Company that wanted to list some properties and when one takes a closer look at the basis that the Financial Analysts calculate the potential rental in

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

come, its all guesswork. It took the historical rental income and calculated the potential yield for the investor. That’s why investors should remember the adage

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

Professional from academic institutions, pharmaceutical industries, health care indust

of past performance is no indicator of future returns and scrutinize the basis of valuation of any investment that they make be it shares, bonds or REITs.

In con

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

clusion, is your money in safe hands? Are you investing in a REIT today that has ancient property rental return valuations or are you buying into a REIT that has

.

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

a few good properties in its stable with the rest being duds? Take active control of your money today and you will start seeing more visible returns on your inves

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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Many books have been written about managing people, and an equally large number have been written about leadership. Some use the words manage and lead interchangeably, and some talk about the differences between the words, building a distinction based on style or behaviors. With all due respect for these books, let me make it simple - Manage things and lead people.

At your next sales and/or marketing meeting, take an hour to categorize your existing customers. Identify the demographics of your market area(s) to learn how many people there are in each category listed above. Finally, identify your strategies and tactics to reach those in each category to motivate them to buy from you. This is not merely segmenting the market, it is “segmentation marketing.”

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