Advice You - Finance

Credit terms and policies for extending credit to customers requires a tight balancing act. You need to watch

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

out for your money and protect your cash flow. You also want your services to be attractive to clients. By fo

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

Examples of combination products may in

llowing a few simple rules about providing credit and setting credit terms, you will keep yourself in perfect b

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

alance.

Credit Terms Rule #1

With new clients, get paid as you do the work. The bill you're most likely to ge

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

stuck with, is the first bill a client receives. Quite simply, don't give them credit terms.

Credit Terms Ru

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

Combination pro

le #2

Get credit card authorizations whenever possible. Either get a credit card or do a check before you lea

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

ve. You don't want to extend credit terms to new clients without performing due diligence unless it’s an extrem

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

ly small amount or you like taking huge risks.

Credit Terms Rule #3

Don't give credit without a rigorous cred

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

it application and credit check. No exceptions.

Credit Terms Rule #4

Get something up front. Commit to getti

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

ng half up front. Securing a deposit check makes all the difference in the world when determining the likeliho

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

d of receiving the second half. Once you make this credit term policy - enforce it.

Credit Terms Rule #5

Neve

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

Following aspects would a

r extend credit on product sales. You're not going to make much money on product sales. This is an accommodat

dd to the challenges in developing combination products:

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

ion or incremental source of revenue at best. Get it prepaid or get a credit card authorization.

Credit terms

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

are an important part of operating a business. You have to remember however, you are a computer consultant, no

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

a bank. You are not in the business of lending money so don't make it a habit.

The Bottom Line on Credit Ter

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

ms

Credit terms are part of business, but you have to be smart about them. Don't extend credit terms to new cu

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

Professional from academic institutions, pharmaceutical industries, health care indust

stomers or on product sales. Do get authorizations and deposits before starting work. If you manage your credi

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

terms properly you improve the likelihood of maintaining positive cash flow. This is what allows you to exten

.

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

d credit terms in the first place.

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

Companies that provide selfless information through particip

Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance

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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