Advice You - Business

The question about how much blame is not about determining any verdict of guilty or not guilty as the courts will do this. It really relates to shareholders, employees, community and country losse

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

s suffered as a result of the collapse.

In the end various parties have and may still be found to have a portion of the blame and shareholders and employees who have suffered most are certainly k

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

Examples of combination products may in

en to see final outcomes to this situation. However one of the major contributors may never be accounted for; this being the market itself. The market (stock market) is made up of many components

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

and this certainly includes investors.

When we ask how much blame we are really looking at dollars lost. During the 2000 year the share price reached $US90 plus, in March/April 2001 period it was

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

around $US55 to $US60. On 19th December 2001 the price was $US 0.19, that is 19 cents before Enron went into liquidation.

Using the Reported Annual results for the year ended 31st December 2000 a

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

Combination pro

d assuming no changes into the future, I have calculated the underlying intrinsic share price as $US4.54. This calculating is based on normal traditional discounted cash flow methodology.

A share

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

price of $US4.54 is certainly different to a share price of $US55 to $US90. Basically the market over valued ENRON by more than 90%. There are a number of stocks are way over priced by the mark

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

t and there are also stocks that are substantially under priced by the market. Generally over a period of time share prices of stocks that are substantially over priced fall back to a level more c

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

losely aligned to their underlying intrinsic value (or lower) where value is calculated on a trend analysis of recent past financial results. Similarly over a period of time share prices of stocks

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

that are substantially under priced increase to a level more closely aligned to their underlying intrinsic value (or higher).

Is it any surprise that the share price of Enron was destined to decl

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

ne sharply? A rapid decline in share price can lead to a lack of confidence in the stock and further add to the decline in price.

Downturn in confidence has been put up as a defense factor in the

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

Following aspects would a

recent Skilling court case. A downturn in confidence can be triggered by a downturn in share price. The decline in a share price of a stock that is substantially over priced can happen in diff

dd to the challenges in developing combination products:

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

rent ways and from different reasons. At some stage the market takes a closer look at the performance of the company and in particular the future forecasted financial performance components for th

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

e company and makes a judgment about these factors. If the current and future financial performance indicators are reduced or looked at detrimentally then the share price will decline as the marke

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

decides to sell down the stock. This is a downturn in confidence factor. There are a number of complex issues involved in the market and this article does not cover all these issues.

A decline i

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

share price can also be triggered by various external factors that include a decline in commodity prices, increasing inflation and interest rates and negative economic forecasts.

In the end shar

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

Professional from academic institutions, pharmaceutical industries, health care indust

eholders loss was substantial. A number of parties have been attributed a portion of the blame for this great and painful loss; however the major contributor was definitely the market. A share pri

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

e of $US90 was excessive and was destined to be reduced.

Clearly the market over valued ENRON by more than 90%. For many investors this over valuation has contributed substantially to their finan

.

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

cial loss. Investors can avoid suffering more large losses that would be incurred by collapses similar to that of enron if they have answers to their questions on what is the underlying value of

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

Companies that provide selfless information through particip

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.adviceyou.org.ua/article/3367/adviceyou-Enron-Skilling--Lay-How-Much-Blame.html">Enron: Skilling & Lay: How Much Blame?</a>

BB link (for phorums):
[url=http://www.adviceyou.org.ua/article/3367/adviceyou-Enron-Skilling--Lay-How-Much-Blame.html]Enron: Skilling & Lay: How Much Blame?[/url]

Why start a car rental business? Well a rental car company makes a lot of sense for many reasons, not the least of which is because rental cars are utilized by many companies for their employees, and for pick-up and drop-off services.

The savvy world investor, according to surveys, now identifies Romania as one of the top three investment locations in the world (along with China and Brazil) and the number one opportunity in Europe. Foreign Direct Investment in Romania is at roughly 3.5 billion dollars currently tied only with Czech Republic for the number one spot in Central & Eastern Europe. Decreasing investment rates there and expected investments in Romania will most likely push Romania on top.

The Delaware Corporations Code is the set of laws that pertain to corporations and business entities registered in the state of Delaware. The important sections of the code are the ones on corporations, commerce and trade, counties, courts and judicial processes, decedents’ estates and fiduciary relations, state government, and state taxes.

Tags

Links

Advice You - Enron: Skilling & Lay: How Much Blame?

Related Articles: