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    The mid-term elections are over, the markets are back to their bullish self, and the sky is not falling.

    Wall Street extended its November rally earlier this week, carrying the Dow Jones industria
    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
    l into new territory as investors anticipated a business-friendly outcome of the mid-term elections and bought stocks across the market.

    In Tuesday’s Congressional elections, the opposition Democr
    ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

    Examples of combination products may in
    tic Party regained control of both the House and Senate, leaving the legislature in Democratic hands and the presidency in Republican hands; with legislative gridlock the likely outcome.

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

    ten rally on elections as Wall Street bets change will lead to an environment more favorable to business. The prevailing wisdom is that a split in power in Washington will create legislative gridl
    here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
    ck, slowing down regulatory change.

    Some investors ran for cover Wednesday as stocks fell early in the day as the election results became known. Still, a pullback in stocks was to be expected aft
    d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

    Combination pro
    er back-to-back sharp gains for the major indexes this week.

    Although professional investors are often viewed as being politically conservative, Wall Street likes what many voters hate: gridlock.
    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
    The market likes to alleviate as many risks as possible, so a “non-activist” government is often seen as one less variable businesses must contend with.

    “Gridlock is good, Wall Street doesn’t like
    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
    change,” said one senior Washington analyst. “You’re not going to have runaway spending increase, you won’t have a repeal of the Bush tax cuts, and there’s no legislative change that will roil in
    nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
    ustries.”

    Mind you...Wall Street investors and analysts don’t often agree on much of anything. Is gridlock good? Some think a political stalemate will be mostly bullish for the economy and for t
    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
    he stock market.

    Others noted that regardless of what happens in Washington, corporate earnings and economic growth will continue to drive the U.S stock market rally to five year highs. Still othe
    ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
    s see the “gridlock is good” idea as a myth.

    “What creates good markets in the face of gridlock is not gridlock,” said one New York chief investment officer. “It is other factors. Is the outcome
    ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

    Following aspects would a
    of this election going to matter as much as housing, oil prices, the Federal Reserve or China? The answer in my view is no.”

    An academic analysis of long-term investment trends showed that stock
    dd to the challenges in developing combination products:

    Which markets to tap where the combination products can do fairly well?
    Which combination prod
    markets do not necessarily thrive during political gridlock. In fact, the study showed smaller companies actually thrive when there is no gridlock and the Congress and President work in harmony.

    cts are meaningful and rational?
    Which therapeutic categories to select?
    Which Combinations can address unmet needs of the patients?
    Do combin
    The study, which analyzed ten stock indexes and periods of political gridlock from 1949 through 2004, found that, adjusting for inflation, annual returns in gridlock periods averaged about 6%. In
    tions increase the patient compliance?
    What would be the developing cost?
    How to tackle the risks encountered during combination product developmen
    eriods of political harmony, annual returns averaged about 22%.

    For the smallest companies in the study, the difference was even more pronounced. During periods of gridlock, annual returns averag
    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
    ed about 4.7%, while in years of political harmony annual returns averaged 27%.

    “That sort of suggests when the government is in unity and can work together it actually does things to help busines
    ping new procedures for reviewing their safety, efficacy and quality.

    Professional from academic institutions, pharmaceutical industries, health care indust
    es and small stocks,” said one of the study chairs. “Even in the 1990s there were times where small-stocks did better during the 2-year window when President Clinton actually had a harmonious Cong
    y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
    ress.”

    So...what does the current political landscape look like for Wall Street? Frankly, I don’t think it changes things very much at all; at least not for penny stock investors. Penny stock i
    .

    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
    vestors do not follow trends...and we certainly don’t hang our investment strategy on political gridlock, political harmony, or any other investment legends.

    R.I.S.K. is not a dirty four-letter wo
    elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

    Companies that provide selfless information through particip
    rd for penny stock investors. If anything, political uncertainty is more harmonious with our investment strategy.

    But increased risk may be something that the rest of the herd needs to get use to


    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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