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Most financial executives use some form of rolling forecast to guide their financial planning and budgeting efforts, but do so in rudimentary fashion, employing mostly manual bu

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

siness performance management processes and spreadsheets that inevitably fail to deliver the accuracy and manageability they are seeking.

A recent survey of more

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

Examples of combination products may in

than 320 senior finance executives in North America and Europe showed that over 68% of companies have developed and deployed rolling forecasts. However, most of these executive

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

s still feel they need to improve the accuracy of their financial forecasts as well as the time it takes them to produce these forecasts.

The study, conducted in

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

eptember 2006 by CFO Research Services (Boston, MA) and Cartesis also showed that:

Companies need better forecasting methods, which solutions such as Cartesis Busine

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

Combination pro

ss Performance Management software can provide. These solutions allow the expanded use of operational drivers, better what-if scenario creation and increased collaboration throu

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

ghout the forecasting process

Finance executives — hampered by a shortage of time and resources — endorse an incremental approach to changes in their forecasting tech

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

ology and business processes
Forecasting With a Moving Horizon

The manner in which a company forecasts its financial and operational acti

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

vities is a key factor in how efficiently and effectively that company can allocate its resources, make investments, guide shareholders and achieve and measure results. Finance

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

executives in the survey agreed that better forecasting would lead to tangible benefits, such as reduced risk and increased profitability.

The survey also showed

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

that two-thirds of respondents who use rolling forecasts utilize a basic 12-month time horizon, when 15 months or more is actually preferred. And nearly one-half of respondents

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

Following aspects would a

use only spreadsheets for financial forecasting, while an additional 21 percent use custom applications built around spreadsheets. Less than one-fourth use a dedicated financial

dd to the challenges in developing combination products:

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

planning, budgeting and forecasting application, such as Cartesis Planning, or a fully integrated business performance management software solution, such as Cartesis 10.

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

Steps to Better Budgeting and Rolling Forecasts

In order to help companies address the financial forecasting and budgeting challenges discussed ab

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

ve, Cartesis recommends a pragmatic approach. The approach ensures that early wins will save time and money, which can be later “spent” on additional improvements that create lo

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

ng-term value.

Quick wins through automation — The use of planning and forecasting applications, such as Cartesis Planning, enables companies to automate processe

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

Professional from academic institutions, pharmaceutical industries, health care indust

s and reduce reliance on spreadsheets for immediate benefits.

Ease of use as a priority — Rolling forecasts are simple to create, even for multi-year horizons; fo

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

ecast templates adjust to each business unit; and benchmarking and what-if analysis are easy, enabling managers to better predict and measure business performance.

.

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

Collaboration with flexibility and control — Collaboration, made easier with workflow management, results in forecasts that are more accurate and aligned with the corporate st

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

Companies that provide selfless information through particip

rategy.

Adaptive financial planning for continuous change — Adaptive planning involves continuously improving the planning process to capitalize on previous gains

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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There is much truth to this statement. If you buy a used watch on Ebay for $10, consider yourself lucky if it comes with a wristband- or hands. If you buy a jalopy for a hundred bucks from a used car salesman named Guido, cross your fingers before you turn that key. And how about that 6-day, 5-night getaway cruise to the Bahamas, for $200? It is probably nothing more than a ferry boat ride and a tour of roach motels. In one sense, you do get what you pay for.

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