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As the trouble with subprime lenders unravel, we need to be ready to be proactive and grab financial stocks that are getting

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

hammered for unfair reason. This means that the company is either getting involved very little in the subprime business or pe

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

Examples of combination products may in

ople are concerned that even the AAA rated loans will be seriously affected.

That brings us to two possible candidates that

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

I can think of:

Washington Mutual Inc. (WM). This company has little if any mortgage borrowers with subprime credits.

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

Washington Mutual is the ninth biggest subprime lenders according to Marketwatch. However, due to its sheer size, it represe

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

Combination pro

nts less than 5% of its total loans. Washington Mutual is also one of the biggest mortgage lenders in the country. If the hou

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

sing sector weakened considerably, Washington Mutual will get hit in the process. What is attractive about Washington Mutual

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

is its low valuation (forward P/E of 9 if all is well and good) and 5% dividend yield at current price of around $ 40. When d

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

efault of subprime loans occur, Washington Mutual may take a hit for the current year's earnings, but if the incident is isol

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

ated, earning would rebound the following year. At $ 40 per share, I believe that Washington Mutual is too risky for the play

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

. If it happens to go down to $ 30/ share, this has a significant chance of getting you a 50% return or so down the road.

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

Following aspects would a

>Countrywide Financial Corp. (CFC). Countrywide is getting linked more to subprime borrowers than Washington Mutual There

dd to the challenges in developing combination products:

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

fore, share price may drop more. At current price of $ 35, Countrywide has a forward P/E of 7. Still, forward P/E is misleadi

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

ng should many of the subprime borrowers default on their loan. Countrywide is the third largest subprime lenders in the coun

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

try according to Marketwatch. However, subprime loans merely represent 7% of the company total loan. While the dividend is no

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

t enticing, its forward P/E is lower than Washington Mutual. For patient investors, Countrywide Financial might be a good inv

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

Professional from academic institutions, pharmaceutical industries, health care indust

estment at $ 25 per share.

Will there be any opportunity to pick up these shares at the forementioned price? Nobody knows. H

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

owever, the goal in investing is to minimize risk. I feel that at current price, while cheap, has a little more risk that I c

.

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

an tolerate. Of course, you should not simply buy the shares just because the price hits certain point. Do further research t

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

Companies that provide selfless information through particip

o find out if the drop is warranted or not. The above mentioned price is merely a starting point for investor to do research.

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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This article profiles the differences between leaders and managers. It focuses specifically on the many benefits that leadership contributes to an enterprise as contrasted with management.

New sites like the Pixel Challenge and www.pixelchallenge.com and the Great Pixel Giveaway at www.pixelgiveaway.com provide effective alternatives to the original Million Dollar Home Page.

The Fair Isaac Corp. has developed this computer model that takes into account different pieces of records about your credit status, both current as well as past. After gathering all this data, the model compares it to the data of thousands of other people and assigns you a score.

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