Just Other Articles

Accounts receivable funding, also known as factoring, continued an upward trend in 2005 with volume exceeding $11

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

2 billion. This represented a 9.3% increase over the prior year, which is the strongest year to year growth rate

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

Examples of combination products may in

since 2000. In fact, only 2001 was the only year in the past 20 that factoring volume did not rise. A/R funding

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

continues to be an accepted part of financing, but according to the Commercial Finance Association’s Annual Asset

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

Based Lending and Factoring 2005 Survey, two thirds of the volume came from the northeast and southeast parts of

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

Combination pro

he country. The northeast is the major region for factoring volume with 42% of the total.

The survey indicated

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

hat only 5% of factoring volume came from the Midwest, which includes some highly populated states with a plethor

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

of companies that typically use A/R funding. States in the Midwest included in the survey were Illinois, Michig

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

n, Ohio and Missouri. Why are the totals so low for these states? One reason could be that Midwest firms typica

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

ly become utilize more traditional means of financing, and are hesitant to look for alternatives when bank loans

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

ren’t available. Another factor is that 59% of all ’05 volume was represented by the textile and apparel industr

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

Following aspects would a

es. Most of firms of this nature are located in the east.

Most factoring volume (72%) involved clients selling

dd to the challenges in developing combination products:

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

oods to retailers. Only 9% were service provider clients with the remainder (20%) being clients selling goods to

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

anyone other than retailers. Clearly, even though factoring volume is increasing each year, there are still seve

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

al industries that could benefit from using factoring as a financing tool.

Factoring is a largely a non-recourse

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

notification business. 80% of factoring was

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

Professional from academic institutions, pharmaceutical industries, health care indust

n a non-recourse basis. This means that if a customer doesn’t’ pay, the factor can’t come back to the client for

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

payment (unless the non payment is the result of product disputes and liability or fraud). The majority (85%) of

.

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

factoring was performed on a notification business. This arrangement requires clients to notify their customers

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

Companies that provide selfless information through particip

hat their accounts receivables have been assigned to a company and that payments should be remitted to the factor

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.justotherarticles.org.ua/article/5407/justotherarticles-Factoring-Volume-Continues-to-Grow.html">Factoring Volume Continues to Grow</a>

BB link (for phorums):
[url=http://www.justotherarticles.org.ua/article/5407/justotherarticles-Factoring-Volume-Continues-to-Grow.html]Factoring Volume Continues to Grow[/url]

Whenever you form a new corporation?whether a business or non-profit organization?in Florida, you are given benefits. Some of these benefits include the following:

1. Four top tips: Four highly recommended methods for managing debt are to track your expenses, cut spending, pay cash and establish an emergency fund.

The power tools of today are not the same as the ones that were carefully placed on the pegboard near your grandfather’s workbench- they are actually quite far from it. Modern technology has made amazing advances in the simplest of features.

Tags

Links

Just Other Articles - Factoring Volume Continues to Grow

Related Articles: