Answers - Finance

Many investors continuously attempt to play a trick on the markets by trying to buy or sell securities just at the right time. But most of the time they achieve the contrary.

Now why is this?

The temptation is huge because

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

nowadays it’s just at the click of a button and you can buy or sell securities within seconds via the Internet.

Especially a lot of beginners tend to think: why not take advantage of the up and down swings of the markets? Se

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

Examples of combination products may in

l now while the markets are up and wait for a consolidation to get in low again!

Now you can do this if you’re a short-term trader. But it’s not advisable being a long-term investor!

For some beginners, the hunt for the rig

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

t entry and exit points has already become a time-consuming hobby. They watch the markets meticulously at their computers day in and day out and are ready to click away at their mouse in order to get in or to get out quickly

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

t the right time.

Easier said then done!

It’s understandable that investors try to avoid bad market times – all the more after experiencing the tumble at the turn of the century. According to a survey by the mutual fund com

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

Combination pro

any Fidelity, in the long run profits of a portfolio increased substantially for whom it was possible to avoid the bad market days.

If in the last 15 years you were fully invested in Dow Jones stocks or even in the 30 DAX co

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

panies – which is the German counterpart of the Dow Jones – the profits in your portfolio would have been up on average by 11.6% per year with the Dow and 9.7% with the Dax. But if you were able to avoid the 20 worst trading

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

ays during the same period, your profits would have soared at around 19.2% per annum.

Now that’s a difference of 7.5% on the Dow and 9.5% on the Dax and it all sounds pretty well and good. The problem is though, nobody ca

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

predict for sure and unerringly when the stock market is going to be at it’s peak to get out quickly and when it’s going to be down the valley to get back in low.

So when is the right time to get in and out? When a security

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

makes 10% in one day or when it loses 10%? When it makes 3% in 5 consecutive days or when it loses 3% in 5 days? Or does a sideways trend or a channel formation signal that it’s time to get in or out? You can never tell wit

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

absolute certainty because at the end of the day it’s all pure speculation!

The second problem is, answering the question when to get back in after you got out high or just before a consolidation. You see, a lot of investor

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

Following aspects would a

s hesitate for too long before getting back in again missing the new uptrend. Mostly the greatest gains take place after a stock has dropped sharply.

In the long run it’s hopeless and futile trying to outsmart the markets by

dd to the challenges in developing combination products:

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

means of clever and canny timing because if you try to avoid bad times, you’ll probably also miss the good times because after a consolidation, most investors are hesitant to get back in again being afraid that the markets co

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

ld go down again or that the initial upswing could be a bull trap, which means that once a turn around to the up-side is signaled, the market quickly turns in the opposite down-side again.

By just missing the 20 best days of

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

the year according to Fidelities survey, your total profits in your portfolio over the same 15 year period would have only been 5.5% per annum on the Dow and 1.3% on the Dax. So you would’ve lost out on an extra 6.!% per year

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

on the Dow and 8.4% on the Dax. And that’s big money! So as you can see, the effects of missing the good times are immense!

Staying fully invested, you will gain way more than you would by selling your stocks in between hopi

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

Professional from academic institutions, pharmaceutical industries, health care indust

g to catch the right timing to get back in again.

Now I’ve got to point out one little thing here. If you’re a short-term trader, timing does play a big role because a trader wants to get a chunk out of a trend that he’s tra

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

ing. So as soon he sees a signal for the trend to go opposite, he bails out. That’s perfectly OK and it’s also the right strategy to use if you trade options or other derivatives.

But if you’re a long-term investor with a we

.

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

l diversified portfolio, there’s absolutely no need whatsoever to continuously jump in and out of the market because that has nothing to do with long-term investing.

Conclusion.

Investors that attach great importance to tim

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

Companies that provide selfless information through particip

ng and believe they can outsmart the markets have to make an immense effort to achieve good results that, at the end of the day, will not necessarily lead to the success hoped for.

Wishing you all the best financial success

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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