Cases - Business

The government requires unclaimed money be turned over to state. Now they are passing bills to spend this money t

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

hat may belong to you! Are they legalizing theft

Unclaimed money accounts in the United States total over $25 B

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

Examples of combination products may in

LLION dollars. The money ends up in these account do to the governments “escheat laws” requiring institutions such a

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

s banks to turn over funds from dormant bank accounts, uncashed checks, unused gift cards, etc. States are now pa

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

sing bills to spend the money from these Unclaimed Property Trust Funds.

These funds are owed to millions of A

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

Combination pro

mericans and instead of making any sizable effort to contact the rightful owners, the state is now proposing to spend

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

this money to handle there own budget problems.

States are passing bills allowing them to use the missing money fund

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

s. One such case is a Bill was passed last year in Arkansas. nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

/ftproot/bills/2005/public/SB929.pdf" target=_blank>The Bill was created impart to allow the State to transfe

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

r up to $15,000,000 of funds from the “Unclaimed Property Proceeds Trust Fund” to the States General Improvement Fund

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

The subtitle of this Bill states the funds are to be used “…to provide additional funds for the State budget”.

Som

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

Following aspects would a

e states such as Indiana and Iowa require that 60% of the money from unused expired gift certificates be sent to the

dd to the challenges in developing combination products:

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

tate and 40% remain for the retailer. George Delta, from the counsel to the Incentive Marketing Association, stated “

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

States require businesses to give them some type of periodic report of the amount of unclaimed property they are hold

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

ng. This allows the state to monitor this potential source of income.”

With the states experiencing such great budg

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

et benefits from the unclaimed property funds, they have little incentive to locate the rightful owners of this money

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

Professional from academic institutions, pharmaceutical industries, health care indust

In the state of California the lost funds have reached over $5 billion and it is estimated 1 in 5 have unclaimed mo

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

ney. How hard is it to find Ryan Seacrest, Reese Witherspoon, Julia Roberts, Kate Hudson and Benicio Del Toro? They

.

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

are all owed money from California’s state database. Microsoft is owed over $25,000!!! California’s Unclaimed Proper

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

Companies that provide selfless information through particip

ty Trust Funds is likely to be a target piggy bank for the CA Governor to use to assist with the states budget issues

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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After hearing Daniel Pink speak about his new book A Whole New Mind: Moving from the Information Age to the Conceptual Age for the fourth time, I finally read it cover to cover (less than a day). I f...

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