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Answers - Location - Location - Location: Truth or Myth?
We have all heard the saying – “The three most important things in real estate are location, location, loca 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 tion.” Now there is no doubt that location is very important in real estate. But, over time, locations ca ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in change. What was once a great location may have deteriorated. The investor should realize that many of t lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. e variables involved in making money in real estate can be changed or altered. You can upgrade a home, low here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe r the selling price, give a buyer incentives, etc. But it is not that easy to change or alter a location. d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro Locations can and do change over time. But it is very difficult to alter a location over the short term. 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 ell, sorry to burst your bubble. I will now tell you the most important thing in real estate (that is assu 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 ing you want to make money). TIMING! The real estate market is noted to have many cycles of boom and bust nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically While it is true that real estate generally will go up 5% annually over the long term, there are generall 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 short term periods of substantial price increases followed usually by shorter term and less volatile perio ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi s of price decreases. Then there are often extended periods of flat to small increases. The key is to kno ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a when to buy and sell in the cycle. Obviously, you want to buy during the flat period just prior to the ne dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod t uptick. Determining this exact time can be difficult. But if you study long enough you can spot the sig cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin s. Let me give you an example of good timing. I bought a parcel of land in 2004 for $45,000. The man I b tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen ught it from paid $28,000 for it back in 1986. In 2006, the land was appraised at $105,000. Now leverage 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 side, I made an annualized return of over 50%, while he made an annualized return of 3%. Well, I hate to t ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust ll you this, but it was the same location and we made drastically different returns on our money. Was the y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products eason I did so well because I studied and analyzed the market and knew prices would substantially increase, . 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 or was I just lucky? In reality – it was probably a combination of both. You need to do your research, bu elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip it certainly helps to have luck on your side. So remember, the old adage is true – “timing is everything. 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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