Just Answers - Real Estate

So you’re thinking of getting into a bigger house. You call up the real estate agent and make an appointment to go see what the market has to offer. Then you find it, t

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

he perfect “move-up” home. It’s everything you’ve ever wanted in a home unless your married, in which case it’s everything your wife has ever wanted in a home.

You’d ma

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

Examples of combination products may in

e an offer right then and there but realize you need to sell your old home before you can by this one. You haven’t even put your old house on the market yet. What to do?

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

The real estate agent advises that you could make what’s called a “contingent offer”; buying the new house is ‘contingent’ on you selling the old one.

“Oops”, says the

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

agent, “Your old home isn’t even listed yet? You may have wanted to do that before we went house hunting. Your offer is a little too ‘contingent’ for most sellers…they

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

Combination pro

robably won’t take it.”

But before you give up all hope of getting into the home you want, first consider a bridge loan.

A bridge loan is a form of second trust that is

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

collateralized by your present home in a manner that allows the proceeds to be used for closing on a new house before the old house is sold.

A bridge loan “bridges” the

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

gap between the two transactions and is often the difference between getting the house of your dreams and missing out entirely. Bridge loans can also be setup to complet

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

ly pay off the old mortgage or to add the new mortgage to your current debt.

Usually people who take out a bridge loan will use the funds to pay off the old mortgage whi

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

e putting the rest towards the new home’s down payment, first deducting any closing costs and prepaid interest.

Typically, the loan is structured with a relatively short

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

term, usually six months to a year, and hefty prepaid interest.

Because of the risk involved in making a loan on collateral with only possible future value (the future s

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

Following aspects would a

ale of the old house), most lenders charge high interest rates on their bridge loans. The borrower typically must begin making these payments after six months if the hou

dd to the challenges in developing combination products:

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

e still hasn’t sold.

Most often, a bridge loan is used to pay off the existing mortgage, with the remainder (minus closing costs and prepaid interest) going toward the d

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

wn payment on the new home. If after six months the old home has not sold, the borrower begins making interest-only payments on the loan. When the home eventually sells,

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

the bridge loan is paid off; if the house sells with in six months, all unearned interests are credited to the borrower.

In a perfect world you would have your house on

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

the market will potential buyers making offers before you make any offers yourself. However, because of fluctuating market conditions, getting the timing right can be di

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

Professional from academic institutions, pharmaceutical industries, health care indust

ficult. If you’re willing to pay the higher rates and fees that come with a bridge loan you can buy yourself some extra time.

While a bridge loan can get you the house

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

you want when you want it, it can be a pricey option in the long run. If it’s an option for you, it may be a better idea to borrow against assets such as stocks or your

.

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

01(k). This can save you a considerable amount of money.

Before you do anything talk to someone who has experience in the financing side of the real estate market. The

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

Companies that provide selfless information through particip

e are more options for borrowers every year and consequently the process gradually gets more complicated. It pays to take the time to understand what you’re getting into

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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Yellow Page Ad Design: Make an offer they can't refuse! “How am I supposed to Make an Offer?” Hey, Chuck...this is a YELLOW PAGE AD. We don't make offers in the Yellow Pages. Usually true. But as Doctor Phil would say “And.... How's that working out for you?”

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