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Every once in awhile someone comes along to rewrites the accepted rules of their business.

Henry Ford rewrote the rules of auto making when he decided to have partially assembled cars move through stationary

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

workers, reversing the accepted way of manufacturing large products.

In 1879, Franklin Woolworth opposed retail rules with his concept of pricing an entire store at a single discounted price – 5 cents. When t

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

Examples of combination products may in

he store failed to attract customers, closing a few weeks after opening, retail critics said it was proof the concept of a low-priced retail operation would never work. Woolworth would defy their opinions when

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

he opened a second store later that year, adding a second price, 10 cents. The new store was a hit and led to 1,000s of stores under the Woolworth banner and dozens of copycats.

Today, Eddie Lampert is boggli

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

ng analysts by completely ignoring the leading retail indicator, comp-store sales (a comparison of sales this year to last year in stores open at least a year), and growing his company anyway! Lampert led K-ma

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

Combination pro

t Corporation out of bankruptcy, craftily building a cash reserve large enough to purchase rival Sears. Both companies were losing market share at the time of the merger, leading analysts to comment that Lampe

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

rt would sell the real estate assets of the new company and then liquidate it. As comp-store sales continued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four

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

-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s

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

once again building a bankroll as profits are up significantly. Lampert’s position is that producing fewer sales at a higher margin is a recipe for success.

Lampert’s secret to success

Lampert secret

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

to success defies another business belief of traditional management. Lampert is running a discount organization with no discount experience. Traditional logic states plainly that someone is unable to run a com

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

any without a working knowledge of that industry.

Malcolm Forbes once said, “Education’s purpose is to replace an empty mind with an open mind.” Lampert knew finances, how to generate profits, and how to prod

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

Following aspects would a

uce cash reserves. Yet Lampert’s mind was empty to retailing. As he learned from the best minds at K-mart and Sears, Lampert was able to maintain an open mind as a fertile field for developing a strategy to re

dd to the challenges in developing combination products:

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

juvenate the company.

His plan, replace low-gross sales with high-gross sales. His formula generates fewer transactions, but still enough transactions to offset expenses. It is almost the exact opposite of th

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

Wal-Mart philosophy. Or is it? Could it be that Lampert is simply refining the Wal-Mart concept?

Consider that Lampert has seriously reduced the number of temporary price reductions, just like Wal-Mart – but

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

with higher entry price points.

Relating Eddie’s success to you

Lampert’s success is only unusual because others do not key into their need for learning. Here are some important points to consider:

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

. Recognize your shortcomings. Sure you know your products, but do you need help understanding the sales or negotiation process? Perhaps you know how to do your job, but do you have the skills to teach others

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

Professional from academic institutions, pharmaceutical industries, health care indust

how to tap into their own talent? Surround yourself with experts.

2. Don’t be afraid of admitting you need to know more. Nobody is so smart they cannot learn more or benefit from the fresh viewpoint of anothe

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

r. Set pride aside and find help in the form of a mentor or professional coach.

3. Think differently. Sometimes success is simply a matter of turning a deaf ear to the experts and go with you gut. If you try

.

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

t, you have to believe in yourself or you will give up too soon. Woolworth’s first store failed. He believed he was right and proved himself on the second try. Success takes confidence and time.

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

Companies that provide selfless information through particip
>

Only time will tell if Lampert is correct – and if he is in the same league as Ford and Woolworth. Regardless, we can all learn from his success and use his lessons for our own benefit.

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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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