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Leasing equipment provides the lessee with all the following benefits of utilizing the equipment without having to pay the up-front costs or assuming the risk of ownership. A lease is one of the

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

best ways for businesses to stay on top of the development curve. With so many new developments that occur (particularly in the technology areas) equipment leasing is less financially expensive.

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

Examples of combination products may in

unning a business means making sound financial decisions that improve the condition and quality of a business. Equipment leasing provides such a benefit along with:

Minimal Cash Outlay

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

Overcoming Budgetary Limitations

Avoidance of Obsolescence

Flexibility in Terms and Equipment

Conservation of the Business’ Working Capital

Incr

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

ased Opportunities

Tax Benefits

Fast Applications

100% Financing

The minimal cash outlay allows a business to conserve their own capital. A lease also p

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

Combination pro

rovides for servicing equipment failures. When managing a large computer room, owning all the computer equipment would place not only the upfront cost of purchasing the equipment, but also mainten

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

nce and repair as needed. Businesses that conserve personal business capital and lines of credit can handle the more mundane day-to-day expenses and unexpected events.

Budgetary concerns over ne

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

w equipment purchases can be circumvented through equipment leasing. Operating budgets tend to be more flexible than a capital budget. The lease terms can be as flexible as required and are often

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

negotiable on an individual basis. Lease terms are usually much longer than a standard bank loan, which makes their payment terms even better.

The ability to upgrade remains one of the best benefi

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

ts of equipment leasing. Businesses grow; technology changes and the needs of both can change year to year. Equipment leasing allows businesses to benefit from developments on both sides of the a

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

sle. Lease terms may also be structured to handle these changing situations.

Considering this multitude of benefits for equipment leasing, it’s not surprising that more and more businesses are re

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

Following aspects would a

aching out to lease their equipment rather than purchase it. The benefits of leasing are not limited to the computer industry or to large corporations. Small businesses can benefit even more from

dd to the challenges in developing combination products:

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

equipment leasing than a large corporation may.

In a contest of leasing versus buying, leasing wins most of the time. Imagine the small business that houses only two employees. Their working capi

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

tal may afford a couple of PCs and some exterior accounts to host a website. When a PC in the office goes down, if they are not leasing they will need to replace the machine. In general, the cost

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

f replacing a standard PC is significantly lower than repairing one.

Small businesses need the ability to remain flexible, to upgrade and to keep their machines in maintenance and up to date. Eve

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

n more than their corporate big brother, they need to know they will remain on the cutting edge of the industry in order to make better business decisions. A small construction company that has n

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

Professional from academic institutions, pharmaceutical industries, health care indust

access to certain types of equipment will not be able to take on more challenging jobs. The graphic’s designer that doesn’t have the equipment to support the latest software will find himself or

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

herself less competitive. An accountant that doesn’t have the disk space to maintain growing accounts will have to turn away business.

Leasing equipment makes sense on a variety of financial lev

.

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

ls, but also on levels addressing future growth. The business that takes advantage of these benefits are planning two steps ahead of their own niche market and will likely avoid being trumped by t

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

Companies that provide selfless information through particip

heir competition. So whether a business is large or small, thinking ahead provides them with opportunity. What is the best benefit a business can receive from leasing their equipment? Opportunity

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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