Useful Advices - Business

Many entrepreneurs have preconceived notions about taking their company public, most of which are not accurate. Nine little known facts:

1. You do

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

not need a brokerage firm or investment banking firm to take your company public.

Many companies opt to go public through a direct public offeri

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

Examples of combination products may in

g. In these registered public offerings, a private company follows the same rules and regulations that are followed by companies who go public with

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

an investment banking firm.

2. You do not need to go public through a reverse merger.

Many companies falsely believe that they are too small or a

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

e not interesting enough to go public so they decide to go public through a reverse merger transaction. The truth is that virtually any company can

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

Combination pro

go public through a direct public offering.

3. You do not need to give up control of your company.

Senior executives of small to medium size comp

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

anies believe that they will lose control of their company during the process to become public. While there are additional constraints due to gover

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

ment regulations and investor demands, it is rare for a company to give up control. When companies do give up control during the initial public off

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

ring process, they always do so voluntarily as they have a choice not to proceed with the transaction.

4. You can significantly increase your pers

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

nal wealth by going public.

Going public is a great way to generate immense wealth. Private companies are often valued at far less than their publ

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

cly traded counterparts. The mere process of becoming public adds enormous value to the shares of any private business.

5. You can provide yoursel

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

Following aspects would a

f and your investors with an exit strategy and liquidity.

Companies go public for many reasons. One of the benefits of being public includes the f

dd to the challenges in developing combination products:

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

ct that insiders and their investors can liquidate their holdings over time.

6. You can use newly issued stock to acquire other companies and grow

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

your business.

Many companies want to go public because they understand that issuing stock to acquire other companies is a tremendous advantage. W

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

at private company would not be interested in hearing an offer from a publicly traded company?

7. You can generally raise capital easier, faster a

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

d at a lower cost after going public.

Investors have a natural preference to invest in publicly traded companies. As a result, they are more willi

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

Professional from academic institutions, pharmaceutical industries, health care indust

ng to invest in publicly traded companies.

8. You can issue stock options to attract and retain high quality employees and consultants.

Smart and

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

talented people are always hard to get. Public companies can effectively use stock options as a nice incentive that their private companies can not

.

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

offer.

9. You do not need any minimum level of sales, profits or assets to become public.

Many private companies think they need to achieve certa

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

Companies that provide selfless information through particip

n milestones to become publicly traded. The fact is: there are absolutely no sales, profit or asset requirements for a private company to go public

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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Useful Advices - 9 Little Known Facts About Going Public

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