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In developed markets, executives point to high labour costs and saturated markets as the critical challenges with innovation being a key priority. In emerging markets the challenges are quite different:

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

labour costs are low and markets are largely untapped. Whilst 2007 promises to deliver much, executives need to be realistic about the complexity of the task ahead.

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

Examples of combination products may in

Top line growth will be a higher priority than cost control for most executives throughout 2007. Spending will be targeted at the front office first and foremost: sales and marketing are the areas of
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

the business to receive the greatest share of the investment.

Globally, China and India continue to grab headlines and attract the largest share of investment. Within the next 3 years more than half of
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
the executives surveyed expect to get more than half of their revenue from abroad.

Huge Growth

Demand and supply issues dominate the CEO’s agenda: by 2010 India alone is expected to have some 5
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro
0 million middle class people. Supplying the increased demand is a huge opportunity and a challenge and many firms are struggling to keep pace with demand.

In addition, rising volume of trade within em
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
rging markets (rather than merely between developed and developing markets) is putting added pressure on infrastructure. The notoriously poor transport networks within developing countries remain a majo
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
r challenge and transport providers need to invest in putting domestic transport solutions inside China and India to allow these economics to develop and to allow consumers to consume.

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

Executives recognize that emerging markets such as India and China not only provide today’s new customers, but also tomorrow’s new rivals. A small but significant minority of firms point to
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
the threat of rising competition from domestic companies based in emerging markets

Shortage of Talent

One of the biggest challenges facing Chief Executives during 2007 is a shortage of talent.
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
his is especially true in emerging markets where one in two respondents identify a lack of available talent as the primary barrier to growth.

Competition for the best talent is an international game wit
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
some of the world’s major banks traveling to India to recruit for their offices in London, New York, Hong Kong and Singapore.

With the increased pressure on talent comes issues around turnover and wage
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
costs. Wage inflation in the Indian information technology sector is about 20% and staff turnover is double that as highly skilled workers switch jobs to boost their salaries. It is a similar story in
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
hina with most multinational operations contending with a 20-30% annual turnover rate.

Global Corporate Strategies for 2007:

Nearly 60% of executives surveyed for this report believe that they w
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ill invest more time and money in emerging markets than developed markets. China vies with the US and UK as the overseas market that executives expect to visit most frequently in 2007.

Managing an ente
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
prise that sprawls across several continents and many more countries may be good for the air miles account but poses huge challenges.

To succeed, firms must localize their products and services, differe
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
tiate themselves appropriately in a range of markets and have the right people in place around the world

Localise Products and Services - Market leading companies recognize the need to develop
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
products that are tuned to local needs, cultural preferences and demands A tube of toothpaste or soap in Western packaging won’t sell in India, for instance, unless it’s packaged in smaller containers m
.

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
re easily transported and sold within smaller retailers
Differentiate – three quarters of respondents will differentiate themselves on quality in future rather than cost as consumers become mor
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
discerning
Fight for talent – executives are putting more effort into building successful training and development programmes and placing greater emphasis on performance based compensation

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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