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Making money with "fixer-uppers" isn't about repairing drywall or planting flowers. It's about using the right appr

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

oach from the start.

A Big Real Estate Mistake

Many people buy and sell a fixer-upper like this: They buy

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

Examples of combination products may in

a house, fix it up, then add some amount (say $10,000) that's in their head onto their costs. Then they put the hou

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

e up for sale for this price. This is so wrong.

Would you buy a house according to what the seller has into it? Of

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

course not. You look at what similar houses are selling for to determine the value. So if you have $110,000 into a

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

Combination pro

fixer-upper and similar homes are selling for $105,000, how much can you get? It doesn't have anything to do with

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

what you've spent, does it?

The Fixer-Upper Formula

1. Determine how much the house wil sell for when you'

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

re done fixing it up. Ask an appraiser for help, or look at what similar houses have sold for (not list prices). Wh

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

at it's likely to sell for is the only meaningful definition of value when dealing with fixer-uppers.

2. Calculate

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

all costs: buying costs, including closing, fees, etc.; repair costs; carrying costs, including interest on loans u

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

sed to buy the house, property taxes, insurance; selling costs, including commissions, fees, title policy, etc. Sub

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

Following aspects would a

tract costs from the expected sales price.

3. Now subtract a profit that makes it all worth the effort. This gives

dd to the challenges in developing combination products:

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

you the highest price you can pay for the house. Walk away if you can't get it for this price or less. Offer severa

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

l thousand less, of course, to give yourself negotiating room.

An Example:

You find a fixer-upper, and det

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

ermine you can get $98,000 for it when it's done. The expenses of buying will be $2,000. You get repair estimates o

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

$8,000. Carrying costs will be $2,500. The sales commission will be $6,500. Other closing costs will be around $1,

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

Professional from academic institutions, pharmaceutical industries, health care indust

500. You figure $1,500 for "unexpected" costs. Finally, you want $10,000 for your effort.

Subtracting all of that

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

from your expected sales price leaves $66,000. This is the most you can pay, if you want a safe real estate investm

.

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

nt. You offer $61,000, and walk away if you and the seller can't settle on something under $66,000.

Always start a

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

Companies that provide selfless information through particip

t the end (the eventual sales price) and work your way back. This is the right way to safely invest in fixer-uppers

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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In our hype-happy, what-to-believe Information Nation, more and more it comes down to one very basic, very essential thing - credibility. So, if The Web is the way, and credibility is king, then the new genesis is G- Cred. How's yours?

In this series of articles I am going to talk about list building and why should you build a list for marketing. In particularly, why you need to think strategically.

Adjustable rate mortgages usually have a significantly lower initial rate, enabling borrower to apply for a larger sum of money.

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