Answers - Finance

For many businesses today the question of whether to buy or lease equipment is not an easy question to answer. Businesses with older management teams tend to follow a trad

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

itional line and steer clear of what they see as 'getting into debt', preferring to wait until they have sufficient funds in the bank to allow for the purchase of equipment

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

Examples of combination products may in

. Businesses with younger management teams, who have grown up in a world where credit is part of everyday life and waiting for anything is simply unheard of, will readily

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

mbrace equipment leasing in preference to purchase. So who is right?

As with most things in life, there is of course no 'black or white' answer to this question, but here

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

are a few things which businesses should consider when looking at acquiring new equipment.

Do you need the equipment?

In the modern consumer world, where we are s

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

Combination pro

urrounded by billion dollar advertising, we have become conditioned to thinking that we must have all the latest toys and gadgets, if for no other reason than to keep up wi

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

h the neighbours. But, do you really need this latest piece of equipment, or can you manage perfectly well with what you have?

How much are the costs of purchase and e

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

quipment leasing?

Having ascertained how much it would cost to purchase the equipment outright, calculated just how long it would take to pay this same sum in leasing

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

fees. If the timescale is relatively short then leasing may prove an expensive option.

What is the position as far as maintenance is concerned?

Would you be respo

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

sible for the maintenance of any equipment leased, or would this responsibility fall to the leasing company? If you would bear the responsibility then do you have the nece

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

ssary staff to carry out any maintenance work and what would be the likely additional cost of doing so?

Would you have the option to purchase the equipment at the end o

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

Following aspects would a

f the lease?

As many items of equipment depreciate rapidly in the early years of use, it may be possible to buy the equipment at a considerably lower cost at the end o

dd to the challenges in developing combination products:

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

the lease. This would give you the opportunity to put the equipment to the test and ascertain its true value to your business before committing yourself to its purchase.

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

Where does your business stand in terms of technology?

For many businesses, equipment purchased today will still be doing an excellent job in ten years time. For

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

other businesses, however, advances in technology will require a rapid turnover in equipment. Take computers and software as an example. How many growing businesses today

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

are moving forward with the same computer equipment they purchased two or three years ago?

How strong is your competition?

If your business operates in a highly co

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

Professional from academic institutions, pharmaceutical industries, health care indust

mpetitive sector then financing activities, such as product development and advertising, will almost certainly be very high on your agenda. Equipment leasing may well perm

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

it you to fund these important areas of your operation, while purchase could eat deeply into your 'war chest'.

These are just a few points to consider when deciding whethe

.

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

to buy or lease equipment for your business. This is not always an easy decision and sometimes the answer will take you out of your comfort zone.

The bottom line for mos

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

Companies that provide selfless information through particip

t businesses is, and should be, the effect that this decision will have on the growth and development of the business and how it will impact upon your competitive advantage

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/104803/answers-Equipment-Leasing-or-Purchase--A-Common-Problem.html">Equipment Leasing or Purchase? - A Common Problem</a>

BB link (for phorums):
[url=http://www.answers.org.ua/article/104803/answers-Equipment-Leasing-or-Purchase--A-Common-Problem.html]Equipment Leasing or Purchase? - A Common Problem[/url]

In every fund raising event that you plan to organize, there should always be a strategy that is appropriate and will surely work out with your fund raising event. But, how can you determine what is the one for you?

Commodity trading is oftentimes offhandedly dismissed by investors as overly speculative and risky. Most investors, and individuals who had unsuccessfully attempted commodity trading in the past with straight futures contracts and/or options, are unaware of the historical/seasonal edge and relatively more conservative nature afforded to them with seasonal commodity spread trading.

Even at 25% growth this year, Samsung and South Korea's other major companies may not be able to overcome China's changing trends.

Tags

Links

Answers - Equipment Leasing or Purchase? - A Common Problem

Related Articles: