Tags |
|
|
Links |
|
|
Answers - Volatility Is Your Friend
A lot of investors dislike volatility. They reason that the up and down movement of the stock price makes it harder to pred
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
ict. Higher uncertainty means higher risk, they say. Therefore, for the same reward, they prefer stocksthat has a lower vol
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
atility.
On the contrary, smart investors like Warren Buffett embraces volatility. He reasoned that if a stock A is tradin
On the contrary, smart investors like Warren Buffett embraces volatility. He reasoned that if a stock A is tradin
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
at $ 50 and has a fair value of $ 60. Shouldn't A be less risky if it plunges to say $ 20 or $ 15? That is a valid point.
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
This of course assume that the fundamental that caused the drop has not changed.
I like volatility for several reasons. Fo
I like volatility for several reasons. Fo
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
entry and exit points, volatility increases our potential return. No, I do not advocate day trading. No, I do not recommen
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
d buying stock A at $ 30 and selling it at $ 31 just because it has risen in value. We should try to be investors with long
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
term horizon of at least one year.
Another reason to like volatility is that it reduces uncertainty. Some of you might ro
Another reason to like volatility is that it reduces uncertainty. Some of you might ro
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
l your eyes and think that this is nonsense. Let us explore this. What causes a stock to move? The stock price might move d
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
ue to market sentiment. It also move when it release earnings or new products or news about incoming threat from competitor
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
. In other word, the stock price moves due to the news concerning the company.
News are fact. Fact are certainty. Therefor
News are fact. Fact are certainty. Therefor
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
e, when the news is out, you get less uncertainty because the unknown has already been discovered. Be it bad or good, news
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
always reduce uncertainty.
For example, when Merck & Co Inc. (MRK) announced the withdrawal of its painkiller drug, Vioxx,
For example, when Merck & Co Inc. (MRK) announced the withdrawal of its painkiller drug, Vioxx,
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
that reduces uncertainty. Sure, shareholders lost money as the stock price plunged and volatility increased. But, sooner or
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
later, Vioxx will be pulled anyway. Not pulling Vioxx only make the liabilities worse. Now, potential investors can estima
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
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
e Merck's fair value based on the 'bad' news. While the news is bad, it reduces uncertainty which reduces risk. This is in
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
a sense good news for investors.
It is hard to fathom. But we need to embrace volatility. Sooner or later, a company will
It is hard to fathom. But we need to embrace volatility. Sooner or later, a company will
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
announce news, which can be good or bad. Either way, the stock price will be volatile when the news is announced. Volatilit
.
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
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
is bound to happen. Otherwise, how can we investors profit from it? When a company's stock price does not move much, you c
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
an't profit much and vice versa. The trick is knowing when to buy and when to sell. That will determine your rate of return
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.answers.org.ua/article/104248/answers-Volatility-Is-Your-Friend.html">Volatility Is Your Friend</a>
BB link (for phorums):
[url=http://www.answers.org.ua/article/104248/answers-Volatility-Is-Your-Friend.html]Volatility Is Your Friend[/url]
Related Articles:
Best Entry Level Telecommuting Jobs
Mia Marketeer Learns Just How Important Reciprocal Linking Really Is
Is Innovation the Buzzword for List Building - Surveys?
Bookmark it:
|