Answers - Finance

For lack of a better word, "alternative" forms of lending and borrowing have lately gained momentum, in no small part to 2006 Nobel Peace Prize winner Muhammad Yunus, who founde

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

d the Grameen Bank in Bangladesh. Yunus discovered that micro loans - sometimes amounting to only a few dollars per loan - could lift entire communities out of poverty. Of cours

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

Examples of combination products may in

e, the situation in the United States is quite a bit different, but alternative forms of lending and borrowing are gaining a foothold, and the result is that both lenders and bo

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

rrowers are beginning to prosper.

In the United States, consumer debt is at an all-time high. Many individuals and families bought expensive homes with unconventional

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

mortgages during the real estate boom and have maxed out their credit cards along the way. Now that the housing market is cooling, unemployment is up in some areas, and even Al

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

Combination pro

an Greenspan has prophesied the coming of a recession, consumers are feeling the pinch. It's becoming more difficult for people to meet their monthly obligations, which can lowe

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

r their credit scores and begin a downward spiral. As a result, many people are unable to obtain loans from traditional lending institutions.

Although behemoth banks

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

may appear to have a stranglehold on the flow of loans in this country, there is a resurgence of the people to people lending that was the longstanding tradition prior to bank

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

loans. A prime example of this type of lending and borrowing is Prosper.com, an online service that brings together lenders, who are interested in investing their money, and bor

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

rowers, who may seek funding to consolidate loans, start a business, make a film, record a CD, or any other venture one might imagine.

Fueled by the power of the Int

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

ernet, this type of people to people lending allows borrowers to make their case for a loan while laying their cards - or in this case, their credit scores - on the table. Lende

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

Following aspects would a

rs, who can invest as little as $50 or as much as $25,000, bid on loans in much the same way a buyer might bid in an online auction. Once the bidding processes closes, Prosper.c

dd to the challenges in developing combination products:

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

om awards the bids with the lowest interest rates, consolidates the funding, and administers the loan. Borrowers repay their loans as they would with a traditional lending insti

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

tution, and if they default, the community knows about it. Lenders can diversify their investments and reduce their risk by lending smaller amounts to a greater number of borrow

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

ers.

In this type of people to people lending, groups (or communities as they're often called) form in order to establish a positive group reputation that will lead

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

to greater trustworthiness and lower interest rates. A group's solid repayment track record, for example, will allow a community member to obtain a loan at a lower interest rate

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

Professional from academic institutions, pharmaceutical industries, health care indust

than an individual who does not belong to a group.

In the case of Prosper.com, the most popular group (with close to 6,000 members) is Two Millionaires. Started by -

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

you guessed it - two millionaires, the group has loaned over $1.5 million to a wide variety of borrowers.

The concept of online social banking is a natural outgrowt

.

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

h of both the need of borrowers in today's economic climate and of the popularity of social investing. Doing well by doing good is a strong motivator for the lenders, who enjoy

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

Companies that provide selfless information through particip

helping those in need while also gaining a significant return on investment. In the process, both lenders and borrowers are bypassing the banking on the road to prosperity.

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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