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Mergers and acquisitions can change the entire business setup and affect everyone from management to employees. The changes must be handled pr

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

operly if you do not want the employees to become demoralized by them, since this can affect your business adversely.

This article discusses

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

Examples of combination products may in

hy M&As fail and how you can ensure a successful M&A for your small business.

Reasons for M&A Failure:

The failure rate of mergers and acqui

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

itions for businesses of any size is disturbingly high; one study put it at 50% of the total mergers and acquisitions in the country. M&As fai

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

because of the following reasons:

1) Productivity falls after M&As
2) Talent retention is difficult after change in the work atmosphere

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

Combination pro

or restructuring.
3) The work cultures and ethics of the two companies may not match.
4) The two managements may not be compatible.

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

5) Poor change management.

Then how can you prevent the above problems after mergers or acquisition? The section below may have some an

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

wers.

Managing M&A:

The human factor is the key to a successful M&A. Most mergers or acquisitions fail because of clashing work cultures and

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

unhappy employees. Successful mergers and acquisitions are possible when companies keep in mind HR-related issues.

1) Work Culture: Work cult

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

re-related issues could mar mergers and acquisitions. Culture refers to goals and assumptions that define the expectations and value of the wo

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

k. If the work culture or ethics of the companies clash, then there is going to be a problem. Before mergers, see how the cultures of the two

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

Following aspects would a

businesses differ. List the commonalities and differences. Come up with a shared goal, and convey it to employees. Work to minimize difference

dd to the challenges in developing combination products:

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

in ethics, values, and work habits.

2) Good Management: Nothing can replace good management when it comes to successful mergers and acquisit

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

ons. You need to identify managers who will be able to steer the company in the right direction after the merger or acquisition. They should b

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

able to motivate employees and ensure that cultural differences do not hit revenues.

3) Retaining Talent: Attrition is a sore issue for man

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

businesses after M&A. In order to keep the best people from leaving the company, you need to give them proper incentives, bonuses and trainin

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

Professional from academic institutions, pharmaceutical industries, health care indust

g so that they do not feel neglected after the merger or acquisition. If you need to downsize, do not do it arbitrarily. Rather, see if the em

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

loyee can make valuable contributions to the company.

Companies choose mergers and acquisitions for reasons ranging from tough competitions t

.

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

need for higher turnovers. However, if the merger is not properly managed, then you risk business failure. Therefore, HR and proper managemen

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

Companies that provide selfless information through particip

are crucial for higher revenues. If you think that you need professional guidance in the matter, you can approach a small business consultant

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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