Actual - Finance

Bills piling up? Scared to open the mail? Time to face up to your mounting debts.

If you get a sinking feeling each time an envelope hits your door mat it could be time to face those debts head on. So, what's the answer?

Re-mortgaging
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
trong>

If you have mortgage, you could consolidate your debts into that, but beware of saddling yourself with a long-term debt for short-term gain. You may be cutting your monthly payments now, but you'll be paying that money back for a long, lon
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in
g time. There's a good reason why those monthly payments are so cheap: they're spread over something like 25 years. Calculate first how much interest you'll be paying over that period. For example by adding ?5,000 to a 25 year mortgage at a rate o
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

f 5% you'll be paying ?2584.30 in interest in total. Mortgage rates can rise, however, so unless you have a fixed rate, don't assume that tomorrow's rate will be as good as today's.

Even if you don't add your other debts to your mortgage, you cou
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ld still shop around for a lower rate. Check the terms of your mortgage and then check a site like www.thisismoney.co.uk to find a better rate. You may have committed yourself to sticking with yo
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro
r mortgage for a fixed term or be liable to penalties if you change, so do your sums before swapping around.

Consolidation

Maybe you have run up a credit card bill which, due to your other financial commitments, you are unable t
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
o clear quickly. If you also have an overdraft, your money situation may feel out of control. Credit experts reckon that you should always try to clear your outstanding balance at the end of each month and not let your balance spiral out of contro
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
l. Don't treat a credit card like a loan - if you need a loan it's better to take one out: the rates are generally far better.

The case for consolidation applies particularly if you have one or more maxed out credit cards or store cards. Especial
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ly where you only make the minimum monthly repayment, or are struggling to chip away at the debt. Credit cards and store cards can have super-high interest rates.

Presuming a balance of ?5,000, if you were only to pay off ?150 monthly you'd still
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
clear it in under four years paying only ?1507 in interest over time. However, if you were clearing it off by paying the minimum each time, it would take you 14.5 years to pay off every penny. By the end you would have paid ?3365 in interest.

On
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
loan with a lower rate of interest will enable you to pay off more money faster. That ?5,000 could be paid off in just over three years with interest charged at a typical 7%, costing you ?575.67. So it might be a higher rate than a mortgage, but
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
the shorter period means you won't be spending so much of your hard-earned cash on interest.

Don't worry that by consolidating you're adding to your debt. It's far more practical to have one sum to pay off, rather than several accounts all attrac
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
ting interest. A loan provider will expect you to make a fixed payment each month, so you won't be able to make mini payments that never clear more than the interest.

IVA - Individual Voluntary Arrangements

If you really are in
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
trouble with huge debts that are overwhelming you (or those over ?15,000), you may need to talk to an insolvency practitioner about an IVA. This scheme was set up to allow debtors to freeze interest rates and pay back debts over a longer period of
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
time. However, beware of those enticing adverts claiming you can write-off all your debts . There are fees to be paid up front and the IVA will stay on your credit record for six years. Typically the process takes five years and you will be commi
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
ted to making regular payments calculated to be within your capacity.

The Debt Advice Bureau stresses that although assets such as your home are at less risk of seizure than with a bankruptcy, they are still at risk. Any savings or other financia
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
l assets are likely to be taken.

You will be unable to get credit whilst you are in the IVA process and any credit you get after will be subject to high interest and other penalties. So you could be spending eleven years under harsh financial con
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ditions.

Bankruptcy

The final resort in cases of bad debt is bankruptcy, but don't be thinking this is your "Get out of Jail Free card". A bankruptcy judgment will have serious implications on your future creditworthiness and al
.

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 your assets can be seized.

There is a huge stigma attached to bankruptcy and how you are viewed in future will be affected in terms of not only creditworthiness, but also in employment, running a company and buying property. Going bankrupt is a
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
very public matter, with adverts published locally and nationally asking your creditors to come forward.

Just like an IVA, there are large expenses involved in being declared bankrupt plus a 15% levy by the official receiver on all sums received

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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