Advice Pool - Finance

Look no further than the recent move the stock of Google (GOOG:NASDAQ) made over the time period rangi

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

ng Dec 2005 to the end of Jan 2006.
With GOOG trading in the $400 and in a nice uptrend, the greed s

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

Examples of combination products may in

arting setting in. CNBC brought in analysts banging their drums, $450 one said, $500 said another. Eac

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

h analyst coming on had to out-do the previous one with another amazing prediction based upon voodoo v

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

luation methods of the moment from respected firms like PipperJaffray.

Not to be outdone, an analyst

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

Combination pro

rom a semi-reputable firm named Caris & Co wanted some of this limelight, he came on and blew everybod

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

y out the water with a lofty target of $2000 per share.

Joe Sixpack sitting by his TV watching CNBC w

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

s simply amazed by this, Joe could buy GOOG today at $420 and it would go to $2000 soon because it is

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

n CNBC, so it must be true.

GOOG went on to hit $475 on Jan 11 2006 as small investor flocked into th

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 stock based upon these wonderful official price targets, but was this a good idea?

Depending on you

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

time horizons, those $500 and $600, maybe even the $2000 targets may be hit, but not anytime soon as

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

Following aspects would a

oe Sixpack would think. So was it a good idea to buy the stock based upon all the positive news? No.

dd to the challenges in developing combination products:

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

The opposite also holds true, GOOG stock started to pull back following all the lofty targets, The sto

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

k dropped from $475 to $337 a few weeks later, accompanied by a slew of negative comments from news so

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

rces and advisories that the stock had moved too far too soon.

If you recall the title of this articl

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 and applied the adage, buy when everybody is selling, once again, you would be ahead. At the peak of

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

Professional from academic institutions, pharmaceutical industries, health care indust

the negativity when some big names where insisting GOOG is overvalued, something very predictable happ

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

ned, the stock turned around and started heading upwards.

By being able to read the signs that are cl

.

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

early visible, the smart investor is able to act against the crowd and profit from such situations. Re

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

Companies that provide selfless information through particip

ember, it is always darkest before dawn, look for the signs, they are all around you, profit from them

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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Almost every day we encounter an ad, a slogan, or some other communication that admonishes us to Listen! Entire ad campaigns have been built around a theme that tells the world that they listen to their customers. And I agree that listening is a very powerful way to connect with another person. That being said, I firmly believe that listening is only part of the power. The real power comes when we LISTEN & HEAR!

People are not merely motivated by money. Sabeer Bhatia of Hotmail has demonstrated that his people are prepared to work for him even though there are many uncertainties during its start-up. They stuck with him because Sabeer gave them a cause.

The burden of governmental debt refers to the sacrifice it will impose on the community through a rise in taxation, necessitated at the time of repayment, and for paying the annual interest on the loans. The concept of the burden of debt is an extremely vague term. However, a distinction is made between financial burden or primary burden, and real burden or secondary burden.

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