Tags |
|
|
Links |
|
|
Actual - What Is Equity Sharing?
With equity sharing, you get to make profits without being a landlord. The downside? You will tie up some money and depend on others to protect your investm
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
ent.
I haven't seen much about equity sharing since it was promoted and hyped by late-night TV real estate marketers twenty years ago. It was often present
I haven't seen much about equity sharing since it was promoted and hyped by late-night TV real estate marketers twenty years ago. It was often present
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ed as a way for the buyer to get into a house with no down payment. But from the other side, as the investor putting up the cash, it might still be a decent
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
investment.
How Equity Sharing Works
Suppose a young couple has the opportunity to buy a house for $106,000, and the seller will finance the deal if they
How Equity Sharing Works
Suppose a young couple has the opportunity to buy a house for $106,000, and the seller will finance the deal if they
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
can pay just $6,000 down. They have less than half of that in the bank, so they can't do it. Then they hear that you might be able to help.
After talking t
After talking t
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
o them, and looking at their credit report and their situation, you decide that they are responsible enough, so you agree to put up the $6,000. However, you
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
don't charge interest. Instead you will take a half of the equity build-up in the home in six years. In other words, they make all the payments, but you ge
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
t half of the equity.
Why would they do this? Because they haven't found another way to buy a house with no money for a down payment. In any case their pay
Why would they do this? Because they haven't found another way to buy a house with no money for a down payment. In any case their pay
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ents, with taxes and insurance, will be close to what they would pay in rent if they didn't buy. Half of the equity in something is better than none.
If th
If th
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
ey sell, you get your $6,000 back, plus half of any equity left after closing costs. If they want to keep the home beyond five years, you will get an apprai
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
sal, and they will need to refinance to pay you your $6,000 and equity share. How much might that be?
Suppose that the original financing from the seller w
Suppose that the original financing from the seller w
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
as at 8%, with payments of $955.66 (15-year amortization). After five years, the balance will still be almost $79,000. That means they have built $21,000 in
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
equity from paying down the loan. If home prices have appreciated at 4% annually, The house will now be worth about $129,000.
The home is worth $129,000 an
The home is worth $129,000 an
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
d there is 79,000 owed on it. You are entitled to the return of your $6,000, plus half of the $44,000 remaining equity, or $22,000. They either refinance an
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
d pay you $28,000, or the home is sold. In the latter case, if the costs of selling are $8,000, you would get $24,000 (your $6,000 plus half of the other $3
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
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
6,000 in equity), and they would get $18,000.
Whether you get $28,000 back or $24,000, that's not a bad return on your investment. Meanwhile, the young cou
Whether you get $28,000 back or $24,000, that's not a bad return on your investment. Meanwhile, the young cou
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
le has $18,000 cash they probably wouldn't have had otherwise. Alternately, they refinance to pay you, and owe $107,000 on a home worth $129,000. You can se
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
e that equity sharing can be a win-win proposition.
One cost you will have is for an attorney to draw up an agreement for an arrangement like this. You hav
One cost you will have is for an attorney to draw up an agreement for an arrangement like this. You hav
.
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
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
e to anticipate all possible outcomes (what if they want to sell after a year?), and account for them in the contract. Remember also that if they just never
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
made a payment and lost the house, you will likely lose everything. That risk is why you get paid such a high return on your investment with equity sharing
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.actual.org.ua/article/131729/actual-What-Is-Equity-Sharing.html">What Is Equity Sharing?</a>
BB link (for phorums):
[url=http://www.actual.org.ua/article/131729/actual-What-Is-Equity-Sharing.html]What Is Equity Sharing?[/url]
Related Articles:
Using Classified Ads as a Valuable Sales Generator
5 Easy Steps to Making Website Pic Links
Bookmark it:
|