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The After Sales market represents today one of the most promising and attracting sector, mainly due to the shift from a product-centric strategy - based on standard, lo

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

w cost and high volume production - to a customer-centric strategy - based on complex mix of products and services devoted to enhance the experience of the customer in terms of satisfaction.

Critical 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

uccess factors previously oriented on internal efficiency in using the production factors are nowadays focused on "external" aspects, such as differentiation, service level and customers loyalty.

The <

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

strong>After Sales sector emerges today as a great business opportunity and companies start understand the criticality on having their fingers in the pie (or, at least, to try to).

A McKinsey

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

eport (2005) stands that "aftermarket is a $400 billion business....many of those in the Fortune 100 rely on the aftermarket for up to 40 percent of their profits", while the A

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

Combination pro

SAP Research (2004) highlight that "in the EU automotive industry, After Sales spare parts generate a turnover of ?44 billions with an operating profit of 20 to 25% in the U.S. Afte

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

r Sales service and parts account for more than 50 percent of the average dealer profit".

Finally, a recent study by London Economics concluded that the value of the European After Sales market (c

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

onsidering spare parts sells) amount to about ?97 billions.

As an example of the importance of the After Sales, the 95% of the turnover for the nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

edia.org/wiki/Original_equipment_manufacturer" target="_blank">OEM (Original Equipment Manufacturer) in the automotive comes from car sales and the remaining 5% comes from the spare part sales. On t

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

he other sides, the profits are equally distributed within final product and spare part sales.

Almost the same could be said for the OES (Original Equipment Spares), where the contribution to turnover

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

given by the aftermarket sales account for 20% of the total, contributing for around 50% for the total profit.

The After Sales service is subject to several competitive pressur

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

Following aspects would a

es, arising from many sides such as, for example, technology, customers or regulations, which in turn impact on the processes, the infrastructures and the management policies.

More in detail,

dd to the challenges in developing combination products:

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

e can stand that:

the business strategy contributes to guides the configuration of the distribution infrastructure of the After Sales services. For example, the strive to cont

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

rol the costs, the aim at gaining customer loyalty or the aim at realizing profits directly through the After Sales influence the offer of services, the distribution and commercial channels and the choi

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

ces about prices.

On the other side, normative aspects (which cannot generally be influenced or driven by a single company) such as rules and regulations, that constra

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

int the decision related to the services. As an example, for all the durable consumer goods sold to physical persons, the European norm imposes a legal period of guarantee, that every producer (or impor

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

Professional from academic institutions, pharmaceutical industries, health care indust

er) is bound to cover.

The technologies used into the product could have an influence on the decisions related to the characteristics of the After Sales service organi

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

zation and management. Clearly, simple product such as domestic blender is not comparable under the service requirements with medical equipment. The After Sales services associated to these products are

.

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

, therefore, of various nature and require different competences from who is intended to provide them.

Market characteristics influence (of course!) the After Sales se

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

Companies that provide selfless information through particip

rvice.

Finally, customers developed a strong perception of their role within the service chain, resulting in high requests for quality and satisfaction level.

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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