Actual - Real Estate

The Affordability Indexes of Greater Vancouver and Metropolitan Toronto, were they measured in degrees Celsius, would be fast approaching the absolute zero or minus 276 degrees these days. And so are the affordability ind

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

exes of all other large urban centers in the United States, ranking North America in third place after East Asia and Europe on the scale of the world’s most unaffordable places when it comes to housing. We win the Bronze Medal,

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

Examples of combination products may in

so to speak, but I am not so sure there is reason to celebrate. Tokyo and Hong Kong, with an average resale value of U.S.$1,100 and U.S.$900 per square foot approximately have turned into cities of sardines, with people reduced

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

to live in 300 square foot cubicles to afford a roof over their heads. London and Paris, with average resale values of U.S.$700 and U.S.$650 per square foot respectively have turned into cities of renters. By comparison, Vancouv

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

r and Toronto with resale values of U.S.$420 and U.S.$430 per square foot respectively are still dirt-cheap - for foreigners, that is, certainly not for Canadians.

The Affordability Crisis is a very serious matter indeed. It ha

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

Combination pro

s economic, political, social and demographic reverberations and repercussions. We have heard it over and over again these past few years: historically low mortgage rates, pent-up demand, low inventories and an improved overall

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

economic atmosphere have all contributed to hot local real estate markets. Which, in turn, have driven prices literally through the roof. But an intelligent analysis of the roots of this crisis, in all fairness, must really reac

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

h beyond the mere finger pointing to the relationship between supply and demand. Home ownership is the single most important element in the democratization of prosperity. It is the element of social stability and cohesion and, t

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

erefore, an important pillar of a sustainable modern economic capitalistic growth. We do everything with our homes in addition, of course, to live and sleep inside: we use them as collateral for personal lines of credit, we use

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

them to increase our net worth, we use them to establish our hierarchy within society, we use them to improve our own self-esteem and, last but not least, we also use them as the parachute of last resort to save us from dire fin

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

ancial straits. Ownership of our homes is everything to us. Now, try to think of a world without such ownership: everything we normally think of as an asset and a credit all of a sudden turns into a liability and a debit – our o

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

Following aspects would a

wn personal balance sheet in reverse. That’s how important housing affordability is in our lives.

The primary culprit and cause of the crisis is the ratio between wages and real estate market values. This ratio is entirely skew

dd to the challenges in developing combination products:

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

d to values. Whereas market values in metropolitan areas in Canada have appreciated an average of fifteen percent per year for the past five years - or a total of seventy-five percent since 2000, salaries have increased an avera

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

ge four percent per annum – or twenty percent total. There is, therefore, a fifty-five percent gap, which accounts for the problem buyers are facing today when it comes to go to the bank and qualifying for a loan. And if you thi

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

nk you are out of the problem because you have bought already – well, think again: no buyers, no demand, and lower values. Lenders claim they cannot lower their qualification standards, and that is probably credible in light of

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

how cutthroat the lending business has become. And governments have chipped in already with aid programs especially oriented towards first-time buyers and tax incentives and credits applicable to everyone else. Which, then, leav

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

Professional from academic institutions, pharmaceutical industries, health care indust

s consumers with no other choice but to rent – just like in Europe, until such time as a new economic equilibrium is established.

Price dropping has been a steady staple these past few weeks in many markets. Many economists do

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

not envision this as a market downturn, much less the onset of the real estate bubble believers in Apocalypse have been prognosticating all along. The general belief is that we are now facing a ‘deceleration' of capital apprecia

.

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

tion – but still an appreciation - now forecasted to hover to on or about five percent in 2006. Real estate, therefore, remains a viable investment venue, but not the gold mine it has been these years past. More importantly, a s

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

Companies that provide selfless information through particip

lower appreciation will allow salaries and wages to catch up and thus to regenerate the pool of buyers, especially first-time Buyers, entitled to take their first steps into the world of real estate.

Luigi Frascati

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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Actual - The Affordability Crisis

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