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Without calculating the return on an investment (ROI) is not possible to realize any marketing activity and be sure not to lose capital investments. It is essentia

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

l for making one`s marketing activity more effective and uniquely productive. ROI can be expressed for different time periods: one year, one month, one week, one d

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

Examples of combination products may in

ay. This makes it a necessary objective analyst of the marketing activity even for a long period. It also includes possible fees and expenses of the future financi

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

al project. When a person realizes an investment there is always a potential to increase the capital in several ways. There are a lot of formulas made to calculate

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

ROI. Some of them are more detailed, some are less. It is obvious that the formula required depends on the type of investment and that ROI does not yield to forma

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

Combination pro

lization and cannot be entirely universal. Nevertheless, a general formula can be given:

ROI= Profit/ Total investment

Total investment - total investment, inclu

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

ding all the possible fees and expenses connected with the investment. For example, if you bought $8700 worth of stock and your fees were $1300, then your total in

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

estment is $10,000 ($8700 + $1300).

Profit - profit or loss associated with the investment. For example if the $10,000 investment in stocks is worth $50,000 one y

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

ear later, then the profit is $40,000 ($50,000-$10,000).

Therefore, ROI calculated by this formula will be:

ROI=40,000/ 10,000=4, or a 400% annual ROI (Just an e

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

xample).

This formula is a base in calculating ROI and has a lot of minuses. For instance, is does not consider that it is also necessary to subtract the taxes fr

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

om a return, possible stock devaluation and many more. In each case is very individual, that`s why it is necessary to show a more detailed ROI calculation on a cer

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

Following aspects would a

tain example - shares.

The firs step would be to calculate the earnings or losses due to increase or decrease in the price of the share:

Current value of the sto

dd to the challenges in developing combination products:

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

cks – Price paid for the stocks

Price paid for the stocks

Suppose $3000 was invested in shares one year ago, taking 100 shares at $50. At the present mo

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

ment the share price is $60. So the investment is worth 60 times to 100- $6000. So calculating the return will give the next result: (6000 – 3000)/3000= 100%.

Plu

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

shares usually earn dividend payments. So it is imperative to assume that the company will pay, for instance, $3 per share in dividends. So the return will be cal

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

culated on the following formula:

Dividends + Current value of the stocks – Price paid for the stocks

Price paid for the stocks

300+6000-3000/3000=110%

Therefo

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

Professional from academic institutions, pharmaceutical industries, health care indust

re accumulating earnings, interests and dividends it is possible calculate the overall return, which is what is really earned or lost by the investment-ROI. But ev

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

en this formula does not include taxes, which can make a serious influence on the return. RIO is a very flexible calculation that requires detailed analysis and ta

.

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

king into account a lot of variables. For example if we deal with a company that rents equipment and has many employees it is – amortization, constant and variable

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

Companies that provide selfless information through particip

expenses, general influx of bankrolls and many more. So ROI calculation is an imperative smart action of every person who wants to take the most of his investment

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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