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Tax Lien Investing is not the secret of the wealthy anymore. Do to late night infomercials and high priced investment seminars th

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

at tout buying tax lien certificates as a high yeilding investment, more and more people are buying tax liens. As a result of thi

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

Examples of combination products may in

s recent exposure to the general market, tax lien investing in some areas has become highly competitive. Is it still a profitable

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

investment?

It’s true that it’s getting tougher to buy profitable tax lien certificates. This is largely due to supply and dema

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

nd. There are less tax liens available and more buyers in the market. At some of the tax sales that I have attended in New Jersey

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

Combination pro

there are more bidders than there are liens for sale.

There are fewer liens available for two reasons. First, it is very easy t

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

o get a low interest loan these days. Couple that with the increase in the value of real estate in the last 5 years and that give

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

property owners the incentive and the means to pay their taxes, even if they have to get a loan. With fewer liens available and

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

more investors in the market, tax lien certificates are selling at lower interest rates and/or higher premiums depending on the s

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

tate. In most states either the interest rate is bid down or the premium is bid up while the interest rate remains constant. New

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

Jersey is rare in that first the interest rate is bid down and then the premium is bid up. Hence in New Jersey tax lien investing

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

Following aspects would a

is not the highly profitable investment it once was.

Judging from the premiums that institutional and private investors have be

dd to the challenges in developing combination products:

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

en paying for tax lien certificates in the last couple of years, I would venture to say that they are seeing an actual return on

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

their investment of 4% or less. This is not very good considering you can probably find a bank right now that will give you 4% on

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

a one year CD. Perhaps as interest rates go up over the next year or two, institutional buyers will get smarter and less desperat

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

e for tax lien certificates and stop paying too much for them. In the mean time the best way to find out if tax lien investing is

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

Professional from academic institutions, pharmaceutical industries, health care indust

still highly profitable in your state is to attend a couple of tax sales and take note of who is buying and what interest rate l

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

iens are bid down to or how much premium is being paid for them. Be sure that you do this before you go out and buy somebody’s hi

.

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

gh priced program on how to make a lot of money with tax lien investing.

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

Companies that provide selfless information through particip

print or on your web site so long as the paragraph above is included and contact information is provided to the email provided

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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