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Usually when we discuss arbitrage we are dealing with the simultaneous purchase and sale of the same securities, commo

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

dities, or foreign exchange in different markets to profit from unequal prices. However, in the real estate business a

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

Examples of combination products may in

different form of arbitrage frequently comes into play. In this case, interest rate arbitrage. Unlike a purchase/sale

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

arbitrage, in real estate we often use a borrow/invest arbitrage.

Common to real estate transactions might be the bor

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

owing using one property or asset and the simultaneous investment of the borrowed funds into another property. This ha

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

Combination pro

pens in many “no money down” deals where money is borrowed using a second mortgage, a credit card, a home equity line,

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

a title loan or an unsecured line of credit. Although this is an oft used technique, it is commonly brought into play

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

without recognizing a critical fact. One that can either make the deal profitable, or put a huge nail in its coffin.

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

o here’s the simple truth. If you are not making a higher percentage yield on the investment than the percentage you a

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

re paying on the newly borrowed funds: DON’T DO IT! I know it sounds crazy, but people do this all the time. For examp

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

e, they borrow on a credit card for a down payment. The credit card may charge 18% to 22%, but the new deal only produ

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

Following aspects would a

e a total return of 10%. So do the math. On the borrowed portion of the investment alone you would suffer an 8% to 15%

dd to the challenges in developing combination products:

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

outright annual loss. This means that you would be depleting one asset for the sake of another. This may not be the r

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

ght thing to do. On the other hand, if you can borrow at 8% and make 12% you have a pure 4% arbitrage yield.

This sim

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

le fact is lost on most people when they buy property. On a larger scale, many transactions are done, and with alarmin

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

g frequency, where a property is purchased, an initial investment (down payment) made and money borrowed for the balan

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

Professional from academic institutions, pharmaceutical industries, health care indust

e when the property yield is less than the interest on the debt. People just don’t run the numbers. Then they just kee

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

feeding the problem until it gets too big to handle and they take the hit. Unfortunately, all alligators aren’t in zo

.

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

os.

So remember, never borrow unless the yield on the asset you’re purchasing will cover both the cost of borrowing a

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

Companies that provide selfless information through particip

d make you a reasonable profit. These are words to life by. Good luck. Make good decisions and your life will be great

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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Maintain and grow patient base by carving out a unique brand for your medical practice. This article is useful to medical practices to define their communications strategies.

All around us success is measured. A football team measures its wins by its scores. We measure the success of our investments by their rates of return. To really measure quality improvement in healthcare or any other business requires that we use data to measure our success. My article gives you tips on how to do this.

Don't have the time to produce and maintain websites with new content? Consider outsourcing this work to be more productive and profitable. Get others to do the writing.

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