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There are several variables that force the lenders to charge such high interest rate for these loans (not they are not happy to do so). Trut

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

h is that though lenders that deal with these loans are often called predators, the costs and risks associated to lending through 24 Hs. L

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

Examples of combination products may in

ans justify these apparently abusive fees. The reasons are mainly three: the lack of a credit verification process, the lack of collateral a

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

d the terms of these transactions.

Lack of a Proper Credit Verification Process

In order to deliver the amount requested in less

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

han 24 business Hs., lenders cannot take the time to conduct a long credit verification process. That is why there are no credit checks done

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

Combination pro

during the qualification process. Instead, only the presentation of proof of income and residence is required for approval. Sometimes, it is

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

also required for the applicant to have a savings or checking account with a bank or financial institution.

The lack of credit checks turns

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

these transactions into very risky processes and thus, the probability of default increases. In order to compensate for this, lenders have

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

o charge higher rates or fees making all pay higher amounts because of those that will fail to meet their financial obligations. It may soun

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

unfair but the lender has no way to know which one is more likely to default on the loan because there are no credit verifications and thus

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

the lender needs to average the risks and the costs.

Lack of Collateral: Unsecured Loans

These loans are actually unsecured pers

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

Following aspects would a

nal loans and so, they carry no collateral. The lack of collateral increases the risk of the transaction because there is no asset guarantee

dd to the challenges in developing combination products:

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

ng the repayment of the loan. In the event of default the lender cannot take legal action against any specific asset and thus the judicial p

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

ocess for claiming the money invested takes significantly more time and resources.

Short Repayment Programs, Low Amount

The loan

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

terms also contribute to increase the fees because the lender needs to charge for an otherwise non advantageous transaction. The amount of m

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

ney that is lent is rather small. Payday loan

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

Professional from academic institutions, pharmaceutical industries, health care indust

usually provide $1500 at best. This implies that the lender needs to collect the administrative costs and loan generation costs from a

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

mall amount. Obviously, when compared to the exiguous amounts lent, these fees are high.

And since the repayment programs are short (two or

.

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

three installments at most), the fees cannot be spread along a longer period of time which implies that all the costs are concentrated into

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

Companies that provide selfless information through particip

single payment or three payments at most. This, added to the two reasons mentioned above, explains why 24 Hs. Loans seem to be so expensive

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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