Advice Pool - Business

When economists agree a downturn is inevitable don’t immediately fire all your staff and prepare for the worst, after all your staff are your best asset. With some careful cost-measuring measures to maximise your company’s efficiency, you can allev

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

iate the need to make widespread redundancies later.

Financial experts offered the following advice for those companies intent on surviving an economic downturn:

Improve Customer Service
Understand your customers and what is happening

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

Examples of combination products may in

in their markets. Anticipate their needs. Which customers do you want to attract and retain? Tighten up your quality control systems to avoid costly mistakes and guarantee customer satisfaction.

Manage Cashflow
If your company is a sma

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

l to medium sized enterprise, you should concentrate more on cashflow than profits. Many profitable businesses face difficulties because they simply run out of cash. Managing your cashflow enables your business to keep trading and that means review

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

ng all the areas where cash can become stuck or ‘lost’. You need to identify potential cash bottlenecks within your company; review your investment in fixed assets, raw materials and saleable stocks; reconsider an appropriate system of stock contro

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

Combination pro

, and re-examine your credit system.

Halt Expansion Plans
If necessary you should delay any expansion plans.

Be Stingy With Credit
Avoid the temptation to win over large customers with generous credit terms because if the

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

large customer gets into difficulty, your company will suffer the knock-on effects.

Review Your Business Plan
Revise your business plan regularly and update your visions, objectives and goals. Make sure everyone in the company understa

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

ds the business plan and the part they play in it.

Look At Your Business Forecasts
Draw up a realistic business forecast and work out the ‘break-even’ point. Once you’ve updated your cashflow forecast, work out what impact a drop in sa

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

es will have on the business. This will provide you with a clear indication of how your business will shape up if trading conditions get tougher.

Review Your Stock
Reduce your stock levels or have more frequent deliveries to keep stock

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

levels low. Consider selling off old or obsolete stock lines. Prioritise your fast-moving profitable items.

Know Your Best Customers
In many cases, 80% of a company’s profits come from just 20% of customers. Identify who your most prof

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

table customers are and focus your efforts on them. See if there any other areas in which you can diversify so that if you lose a large customer, it won’t have a huge impact on your company.

Consider Your Suppliers
Does your company ma

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

Following aspects would a

inly rely on one or two suppliers? What would happen if you had to find alternative suppliers? Can you negotiate discounts for prompt payments to them? Can you negotiate better terms so that you keep your cash for longer before having to pay bills?

dd to the challenges in developing combination products:

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

Cost Control
In which areas of your business can you save money? Consider bank and insurance charges and ensure you are getting the very best deal available. Look at rent, rates, power and lighting charges. Review your future expenditu

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

e/capital/equipment purchases. What about productivity, the use of temporary workers, performance-related pay, leasing unused premises/factory/office space?

Cut Your Bank Charges
Decrease the number of times you pay in and withdraw cas

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

and cheques as your company is charged for each transaction that appears on your statement. Avoid unauthorised overdrafts or exceeding overdraft limits, as the penalty charges will quickly mount up.

Forewarned Is Forearmed
Review what

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

happened to your business in the last economic downturn and determine where the most vulnerable areas where. If your company wasn’t trading then, find out what happened to companies in your sector of business.

Resist The Urge To Discount

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

Professional from academic institutions, pharmaceutical industries, health care indust

> Keep your prices up by adding value to what you sell. Avoid the impulse to offer ever-increasing discounts to retain customers. Even in a high margin business, you will need to win substantially more volume to keep the same net profit if you giv

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

a small discount.

Keep Lean And Mean
Whatever the economic climate, the need to operate a lean and mean business is always a driving factor for competitiveness. Businesses should try to see a difficult economic and competitive environ

.

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

ent as an opportunity to improve their performance so that they can compete with the best.

Stay Calm
Don’t panic! Stay focused and keep your objectives in mind. Don’t forget to ask for help before things get desperate. There are many o

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

Companies that provide selfless information through particip

ganisations that can advise and help you to navigate the stormy seas. You only have to ask. Above all listen to people who understand what your business is going through and who have valuable expertise to contribute. Then commit yourself to success

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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