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Ever wonder why you feel so satisfied with 8% or 10% annual returns if you have parked your money at a big investment firm? Ever wonder why you are very reluctant to question if 20% annual returns are possible without fear of enormous

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

risk? The answer is simple. Most big investment firms, through squawk boxes on MSNBC, and through the reinforcement of their portfolio managers and financial consultants have conditioned you to believe that 20% stock returns are not po

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

Examples of combination products may in

sible without great risk. I’m here to bust that myth and to tell you what you need to know to start earning higher returns in your stock portfolio.

Big investment firms don't want you to ask too many questions to their financial consu

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

tants so they train all of their financial consultants to teach you investment myths that discourage you from asking hard-hitting questions. And if this method of prevention doesn’t work, most financial consultants are trained by their

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

big firms to be virtual public relations experts in the technique known as block and bridge. Just listen to any political press conference and you will see this technique employed dozens of times within half an hour. Well trained jou

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

Combination pro

rnalists will hone in on this technique immediately and find ways around it but the average person investing with a big investment firm may have much more difficulty with this technique. In fact, I would argue that fear and confusion a

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

e among the top commodities that financial consultants of large investment institutions sell.

Financial consultants make you fear being out of the stock market at the wrong time by telling you that if you missed the best 90 days in th

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

stock market from 1963 to 1993 versus being fully invested, that your average annual return over that 30 year period would drop dramatically from 11.83% to 3.28% (Source: University of Michigan). They utilize this fear to sell you on

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

he concept of Modern Portfolio Theory and diversification. Why?

Because the outdated concepts of Modern Portfolio Theory and diversification allow firms to undercut your expectations of performance from your stock portfolio. Modern po

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

rtfolio theory and diversification are also known as the lowest common denominator theory. They are the easiest concepts to teach thousands of financial consultants, and the concepts maximize the revenue of big investment houses. What

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

he concepts don’t do is maximize the potential returns in your stock portfolio. But isn’t it in the best interest of big investment firms to maximize their client’s stock returns, you may ask?

Absolutely not. Teaching thousands of fin

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

Following aspects would a

ncial consultants more productive strategies of investing takes more time, and more time spent by financial consultants trying to maximize clients' returns will ultimately decrease the firm's bottom line. Furthermore, only a very small

dd to the challenges in developing combination products:

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

percent of the financial consultants they hire would be capable of grasping the concepts of more creative strategies, thus creating high percentages of failures. Consequently, it is a much safer business decision for these firms to sti

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

ck with lowest common denominator strategies that will maximize the firm’s revenues and profits.

Realize that financial consultants are also trained “block and bridge” experts. What’s this? Blocking is the technique of acknowledging a

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

tough question, while bridging is a technique used to avoid a tough question to make an irrelevant point. For example, if you asked your financial consultant, “I’ve heard that many people earned 20% in their portfolio this year, but I

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

only earned 5%. Why is that?” When a financial consultant uses the block technique, he or she would answer “I acknowledge the fact that you may be concerned about only earning 5% this year when other people earned 20%.” Then using the

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

Professional from academic institutions, pharmaceutical industries, health care indust

ridge technique, he or she then would say, “But the issue here is risk. When we met, you told me that your objectives were growth over a ten year horizon and you told me that you had an average risk tolerance. My strategy is the best a

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

nd safest for you given those parameters.”

Notice that the question of why people earned 20% was absolutely avoided, and in such a manner that you probably didn’t even realize it. If block and bridge was used to answer such a question

.

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

chances are you would move forward in your discussion without even realizing that it is possible to gain 20% in your portfolio without changing your risk parameters or your time horizon.

To summarize, if you understand that most inve

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

Companies that provide selfless information through particip

tment mantras you hear from financial consultants are merely marketing myths designed to close the deal, you can learn to ask hard-hitting questions that will improve the performance of your stock portfolio.

© 2006 SmartKnowledgeU.com

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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