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Lisa and I walked 5 miles around Boston to celebrate our wedding anniversary. The Swan boats, Italian food in the Northend, a new "doo" for Lisa on Newbury Street, and new summer sweaters for me("About time you got some sweaters with bright colors!", Lisa said).

At Fanueil Hall Marketplace we wa

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

tched "Formerly known as 'Jim the Juggler,' now known simply as "Jim, from The Jim Show." Jim does daffy juggling as children giggle and parents laughed (we laughed and giggled). Jim balanced on a large beach ball while juggling. I cannot stand on a beach ball nor can I juggle. Yet every morn

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

Examples of combination products may in

ng my brain attempts the economic juggle, a dance registered investment advisors do in their office (privately). No need to mention the balls required, but here is an outline of what each ball lofted represents.

Each subject has current relevance, especially when the market movers sell more stoc

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

k than they buy. I will define and explain the relevance in my opinion.

Interest Rates
Bond Rates
Inflation

Other influences driving the stock market have aggregate affect, but individually lack market-moving clout. So, let's look at what each subject means to the ma

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

ket.

Interest Rates: Lisa's grandmother laments about the Bush administration while she longs for Jimmy Carter. "Those were the good ole days when the banks paid you for investing!" She remembers a call from a Florida stock broker offering her a 15% return on her $25,000 deposit. Of

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

Combination pro

ourse, she and "Pa" never calculated their real rate of return (The inflation rate from June 1986 to June 1989 was 13.33% leaving 2.67% pre-tax real-rate of return)

Interest rates and inflation are the horse and cart of the economy. High Interest rates do not guarantee low inflation, nor

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

that Lisa's grandmother gets a "good-return" on her money. However, higher interest rates manage economies by affecting borrowing, corporate expansion, merger/acquisition activity (notice it slowed down on June 5, 2007), and currency values (U.S. dollar versus the Yen, as an example). Finally,

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

he stock market dislikes high interest rates because there is less risk when buying bonds. You still with me?

News Flash! "Tracy Withers reports that "New Zealand's central bank unexpectedly raised its benchmark interest rate to a record 8 percent, saying housing demand and consumer spen

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

ding are fanning inflation. The currency rose to a 22-year high"

"Skellerup Holdings Ltd., which exports rubber goods used in medicine and irrigation, this week said full-year profit will fall by 34 percent because of the currency's gain. The company is planning to stop some local production and

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

ire workers because it is cheaper to make goods overseas, it said."

Interest rate increases control inflation and can instigate sector recessions.

2. OK. On to Bond values. The bond market is all about the "cost of money". Cheap money means mortgages, corporate buyouts, and stock mark

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

t opportunity.

How come the bond market does not control interest rates? Perhaps because there is no immediate consensus, and bond traders might not consider inflation's nasty economic slaps the way Federal Reserve Bankers do. Federal Reserve Bankers line their jackets and underwear with fabric

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

Following aspects would a

imprints reading "Inflation". Nothing matters more. At the Federal Reserve Bank water cooler, it's all about inflation.

Bond traders are not numb to economic indicators. Sell-off's in bonds push interest rates up and bond values/prices down. Bond traders don't take risks with an greater cour

dd to the challenges in developing combination products:

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

ge than you or I. No one wants to lose money.

Joseph Keating, Chief Investment Officer for First American Asset Management thinks bond yields are now giving "competition" to stocks. Investors are observing bond yields, and consider bonds the "safer bet". Stock buyers need a "premium" when buyi

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

ng stocks due to stock risk. This is known as "stock risk-premium". When risk premiums are high, bonds fly.

Supply and demand drives pricing. So when bond buyers are attracted to higher yields, pricing gets tighter (bond prices go up and bond yields go down). This bond buying brings lo

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

er yields or lower interest rates in the bond market. Lower interest rates in the bond market decreases the risk premium making stocks attractive. When risk premiums are low, stocks grow. Fascinating, don't you think?

Bond traders tend, in my opinion, to give weight to economic growth rather th

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

n to the value of the dollar. Dollar values may tell us more about inflation than any other indicator. Every commodity in America (and the dollar is no longer a commodity) is dollar-priced. If the dollar is down in value against other currencies, does it suggest that prices are inflated? Does

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

Professional from academic institutions, pharmaceutical industries, health care indust

this mean that someday, holders of the dollar will want more for what they can get with their lower-valued dollars? It seems so.

Inflation: No wonder the "Fed" worries about inflation. The insidious affect gets little attention from the public, but the result devastates buying power.

Track

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

ng inflation started in 1914. Not much relevance tracking inflation from 1914 to now. However, we could try it from January 1997 to January 2007. From then to now, the inflation rate is 27.14%. Now, let's calculate what that means to your spending power. We can calculate the affect of

.

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

inflation: $1+($1 x .2714)= $1.2714 or $1.27. This means your investment account per thousand must earn at least $270 more per thousand just to keep up with inflation. The current Inflation Rate is 2.57%.

``Inflation causes reduced consumer spending, it squeezes profit margins,'' said John K

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

Companies that provide selfless information through particip

rnitzer, who manages $6 billion at Kornitzer Capital Management in Shawnee Mission, Kansas. (Bloomberg.com, U.S. Stocks Retreat on Inflation Concern..., Michael Patterson)

What do you prefer? High interest rates or low inflation? Juggle them if you can; for me, logic recommends asset allocation

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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