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Asking questions and listening effectively are important skills both in selling and negotiating. The first phase of negotiation involves both parties agreeing the background to the negotiation and fishing for the opening demand or offer.

It is often better

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

to present the opening demand or offer in terms of a hypothetical question, as this allows the negotiator to retreat to his initial position if necessary.

The opening offer will probably be at or just about the level of the negotiator’s maximum expectatio

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

Examples of combination products may in

n, giving him room to manoeuvre, but not so high that the offer lacks credibility. Do not attempt to win. at this stage, but hold sufficient back so that you are able to move, if necessary, at a later stage.

This is a difficult period in the negotiation pr

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

cess and a professional negotiator will often use silence or other pressure techniques to solicit information from the other party.

Further Movement and Concessions:

During negotiations, it can be in the interest of each side to keep asking questio

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

ns and raising objections. Many excellent negotiators are low reactors who will proceed very slowly. However, given that the opening position of each party differs, then there has to be movement and concessions if a deal is to be struck.

Negotiators will t

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

Combination pro

nd, at first, to discuss extra demands, trying to get the other side to agree to these without offering anything in return. They will be reluctant to give information or will defer decisions in order to increase the pressure on the other person.

When an

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

offer does come, it will often be on the basis of a quotation based on the minimum quantity at the lowest possible price. In all this, the negotiator is attempting to dominate the interview, pressing for maximum advantage, and trying to force the other pe

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

rson to concede on a major issue.

The skilled negotiator will ask the other side for a complete list of all his, or her requirements, and will not concede on a single issue until he knows the nature of the whole package. He will then begin to trade concess

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

ons, starting with the smaller, less important aspects of the package.

Negotiators should avoid making one-sided concessions which will severely weaken their final position and could affect the overall profitability of the deal.

When movement comes, it be

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

gins slowly, and then can be very rapid as both parties sense a deal is on the cards. Movement does tend to be discontinuous with either party moving and the other holding up the agreement at any one time. This leads to short periods of deadlock, which ca

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

be brought to an end in different ways.

Some of these are:

• Period of silence. Wait for the other party to speak.

• Agree to a concession. Always trade concessions by saying“If I do this, will you do that”?

• Adjournment to review position

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

Following aspects would a

s.

• Agree to leave certain issues to one side for later and concentrate on the rest.

Identify areas of common agreement.

• The use of the relationship with the other side to break the deadlock.

Signals to be aware of that could mean the other side wishes m

dd to the challenges in developing combination products:

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

ovement to take place could include:

• Trial movement. One side uses words like “What would you say if ...?” or uses hypothetical examples.

• Summarises the position to date and asks “Where do we go from here?”

• One side calls for adjournm

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

nt.

• Appeals to the other side’s better nature.

• Asks for more information.

• Uses “crowding” techniques to force movement, e.g. aggressive behaviour, sets deadlines and time limits, threatens use of the competition.

The use of concessions is a vital pa

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

rt of building a profitable relationship for both parties in the negotiation. Earlier, we discussed the different elements that could constitute the final deal. The use of concessions enables negotiators to build a mutually profitable deal that is not one

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

-sided in the other side’s favour i.e. It results in a “win-win” outcome.

And Finally – Bargaining:

When it comes to bargaining try to get the other side to commit themselves first. For example:

Scenario 1.

Buyer: “I’m willing to reach so

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

Professional from academic institutions, pharmaceutical industries, health care indust

e sort of deal, but I want a 10% discount”.

Salesperson: “Okay, I’ll agree a 10% discount, but we’ll have to look at a longer-term agreement”.

Buyer: “Well, thanks for the 10% but the 1 year contract we have already agreed will have to stand

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

”.

Scenario 2.

Buyer: “I’m willing to reach some sort of deal, but I want a 10% discount”.

Salesperson: “Okay, we may be able to look at our discount structure, but to do that we’ll need to agree a 2 year contract”.

Buyer: “Oka

.

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

, well 2 years may be possible, but can we go to the full 10%?”

In the first scenario an offer of 10% was made, but what was asked for was vague. Responding to a specific demand like this we need to be vague, but positive: “Okay, we may be able to loo

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

Companies that provide selfless information through particip

k at our discount structure”. and our counter demand needs to be specific: “But to do that we’ll need to agree a 2 year contract“

Remember, when you bargain, offer vague, ask specific.

Copyright © 2007 Jonathan Farrington. All rights reserve

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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