Actual - Real Estate

The right time to think about how best to finance your new home is when you first make the decision to move. As you’re looking for your d

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

ream home, here are some things to keep in mind about popular mortgage loan programs today.

Nothing down, or 100 percent financing

There

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

Examples of combination products may in

re tons of programs that let you buy with virtually no money down or cash up front. These are popular because buyers can afford bigger, better ho

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

es. But you must proceed with caution. Naturally, you pay more over the life of your mortgage the more you finance.

You also need to plan for t

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

he worst when making such a big commitment. If something happens where you can’t pay your mortgage two months after closing, will you have any eq

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

Combination pro

ity in your new home to either borrow against or cushion the blow of having to sell quickly? You won’t if you put nothing down.

Finally, the mor

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

you finance the more susceptible you are to fluctuating property values. Real estate values will go up over time almost without exception. But

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

in the short term, you’re better protected the more of a down payment you can comfortably make.

Adjustable Rate Mortgages and Interest-Only Lo

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

ns

Adjustable rate mortgages (ARMs) and interest-only loans are very popular today. They let you pay less now and more in one, two or three

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

ears (usually). Paying less now and more later is right for some buyers.

But this too has pitfalls. With an interest-only loan, you don’t pay d

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

wn your principal at first. It’s cheaper, but your monthly payments are going to spike, often drastically, after the interest-only period is up.

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

Following aspects would a

The same is true, if less dramatically so, with adjustable rate loans.

Be sure you can either afford to pay the adjusted monthly payment down th

dd to the challenges in developing combination products:

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

road, or that you’ll be able to refinance your mortgage again before the payment spikes. Both scenarios involve uncertainty. You need to be com

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

ortable with the level of risk and not just look at your initial monthly payment.

80/20 Mortgages

You may also consider something called

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

an “80/20” mortgage, actually two mortgages – one for 80 percent of the contract price, and a second mortgage for the remaining 20 percent. You’l

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

sometimes hear this referred to as a “piggyback” loan. Buyers often favor these because they can avoid paying a premium for private mortgage ins

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

Professional from academic institutions, pharmaceutical industries, health care indust

rance (PMI) and don’t need to make a down payment.

As with other popular mortgages, you should consider the drawbacks, too. You’ll likely pay tw

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

o sets of closing costs, though that may be less than a down payment plus PMI. And lenders are often very creative when it comes to 80/20 loans,

.

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

specially the smaller, second one. It will likely have a much higher interest rate, and may reach maturity – that is, you may be responsible for

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

Companies that provide selfless information through particip

aying the full balance – after only a short time.

Again, be sure you can either afford your future liability or will be able to refinance.

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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