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Expecting returns on expenses seems contradictory. How can you earn money on what you spend? There are several areas to target and we will examine each one in this series. The fir

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

st is using your credit policy wisely. Do you invoice your customers on a regular and prompt schedule? Your customers can not pay for items or services not invoiced and the longer

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

Examples of combination products may in

it takes for them to receive an invoice the more likely it will be that payment will be delayed. While you will have paid vendors and payroll you will be waiting for payment and per

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

haps financing your operation costs with interest bearing loans.

Make sure you describe clearly your terms and collection policies to your customers. Most customers will assume 30

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

days terms if you do not tell them differently. And think about what your terms are prior to extending credit to customers. How long can you afford to carry the cost of credit? An

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

Combination pro

remember cost includes all expenses incurred to produce the product or service you are selling and the cost of carrying that expense. Even if your cash flow allows you to extend cr

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

edit without borrowing yourself, there is a cost of someone else using your money and that expense should be added to the cost of the sale.

Will you offer a discount for early payme

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

nt?

Will your margins allow you to offer this discount and still make a profit?

Do you have the ability to track when a discount should be allowed and will you rebill for that disc

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

ount should the payment not be received in time but the customer stills takes the discount? These are all important questions to answer before you decide to offer credit to your cus

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

tomers. If you do not take the time to answer them you risk your cash flow, profits and perhaps your business' success.

If you do decide to offer credit to your customers it is ver

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

important to have a easily maintained receivables aging. This document is standard in almost all computerized accounting systems. It will break down your outstanding receivables i

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

Following aspects would a

nto several categories based on the age of the invoice date. The most common categories are current, 30 days, 60 days, 90 days and over 90 days. And you must be willing to make the

dd to the challenges in developing combination products:

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

phone calls or send the letters to ask for delinquent payments. This is one area that many business owners are reluctant to do. And please remember there are laws in place that pr

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

event you from making threats, using unacceptable language and harassing people. The best way to handle delinquent clients is to politely explain why you are calling or writing, ask

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

if there is a problem with the product or service they received and if there is to offer a solution to correct the issue. Should it be a case of the client not having the funds to

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

ay in full at this time you may want to suggest a payment plan that they can stick to. And get it in writing with their signature along with a clear explanation of what the conseque

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

Professional from academic institutions, pharmaceutical industries, health care indust

nces of non-compliance will be.

Of course by carefully checking their credit references you may avoid all of the above. Ask for the name of their bank and at least three business r

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

eferences with addresses and account numbers. And follow up on their references. Check to see if their references are real (are they listed in the phone book for example). Call th

.

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

eir references and ask how long have they been a customer, what is their payment experience, have they ever paid late. There are also services that provide credit reference checking

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

Companies that provide selfless information through particip

at a small fee.

Extending credit to your customers can increase sales if you are prepared to do the work that is necessary to keep your costs down and your customer payments timely

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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