Advice You - Business

Sometimes when I am coaching the owner of a medium-sized company, I will remind them how Jack Welch

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

of General Electric said “If we don’t systematically destroy our own business, our competitors wil

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

Examples of combination products may in

.”

The big question

Once the boss gets over the initial shock, we review each part of 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.

nterprise, asking “If you were not already in this business, would you enter it today, knowing what

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

you do?” Pruning dead wood leads to a stronger business.

Good investments give good retu

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

Combination pro

ns

As you consider your investment in machinery and buildings, look realistically at what use

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

they are to you. The more you use them, the more return they should give you. Where your bus

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

ness only creates marginal value, your returns might be better on a high interest savings bank acco

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

nt.

When to walk away

Some assets are not easy to liquidate or move, so you may have to ab

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

ndon that business systematically: making all further investment decisions on a zero base (i

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

noring investments sunk so far); selling bits off when you can; and milking the unsaleable parts fo

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

Following aspects would a

r income without further investment.

Minimising people pain

Of course these decisions will

dd to the challenges in developing combination products:

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

impact your employees. Some jobs may need to go now to enable you to employ more people later
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
. If you treat people with care and consideration and talk about your plans, they might suggest ide
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
s for improving the business that you would appreciate.

Choosing to invest or divest

If yo
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
have several businesses, you could rank them by earning power and market potential. By selling th
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
e lower-earning businesses, you increase average returns of your portfolio. You also get a better f
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
cus, and your growth trends improve. You need courage to walk away from a business that you have
.

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
grown yourself but this can help your other businesses to grow faster.

So my question to you i
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
"How can you destroy your business creatively so that your business grows in the long term?

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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Advice You - Business Change, Growth Strategy and Productivity: How Do You Destroy Your Business Creatively?

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