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Although you hear a lot about alternative energy being a good investment today, I think that it’s still a lot more hype than reality. Yes I’ve heard the arguments for alternative energy investments such as high oil prices now make the development of alternative energy so

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

urces more appealing on a cost-benefit scale. And I know that major oil companies are pumping billions of dollars into developing alternative energy. Still, considering that Exxon declared over $9 billion in profits, not revenues, in just one quarter in 2006,
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in
> several billion earmarked for alternative energy development is not a lot. And while I’m also aware that companies like Vesta Wind Systems has jumped by 40% in the last six to nine months, I still think that alternative energy investments are more of a trading strategy rathe
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

than investment strategy for the time being.

As you know we always discuss investing here, not trading, meaning that we wish to hold almost all of our investments for at least six months or longer, not just a couple of weeks or months. Although alternative energy is real, and it
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
does work there are many reasons to be skeptical before jumping on board.

First of all, most crisis as presented by the media serve multiple interests, none of which includes the public at large. This is ironic because the major media all over the world seems to be deathly silent r
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro
egarding real crises that do affect the public at large, such as one of the largest looming financial crises today. Anyone remember the travesty that was touted every single day in the media for at least a solid month leading up to New Year’s Eve 1999 that was called Y2K? And
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
hat whole “crisis” passed with not even a blip on anyone’s screen. But Y2K did serve many corporate interests. It served the media’s interest because by attracting scores of readers and viewers and higher advertising revenues, and it served the technology ind
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
stry’s interests by resulting in millions, if not billions of increased sales of computers and software by fearful consumers.

I would not be one bit surprised years later to find out later that the public relations branches of technology companies were the ones that manufactu
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ed and released the lion’s share of Y2K stories to the media for public consumption. Likewise this is why I’m skeptical of the Peak Oil crisis. Personally I think Peak Oil has been manufactured by big oil to justify higher crude oil prices. The term Peak Oil conjures up
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
images of scarcity, and we know that scarcity in the supply-demand yield curve leads to higher prices. Furthermore, the media is happy to disseminate the Peak Oil theory because any type of crisis generates more advertising revenue for them. Personally I think that most
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
of the crises we hear about in the media are junk, cooked up in the back offices of public relations divisions of the very industries the well-publicized crises will benefit.

If anything, the threat of lost imports from Venezuela as Venezuela continues to strengthen t
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
ade relations with China poses more of a threat to the U.S. economy that the Peak Oil crisis. Over the next six years, China will invest over USD $5 billion in oil exploration and production in Venezuela and Venezuela will increasingly become less dependent upon the U.S. not only f
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
r its oil exports but also for oil infrastructure as China increasingly fills both of these needs.

With sophisticated 3-D and 4-D seismic imaging equipment today, we know that big oil has unearthed some huge reserves of oil in deep sea territories. In the past it was impossible to
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
drill at the depths that oil and gas companies drill at today. But now, with the rapid development of deep-sea drilling technology, drilling at depths of 3,000 meters (over 10,000 feet) is not only becoming more common, but are leading to some significant oil and natural gas discov
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ries. In fact knowing that exploration is increasingly going deep sea, I bought a Norwegian company that specializes in building deep sea drilling infrastructure called Acergy and in a little over two months I’m sitting on nice fat 25% profits. At this point I’ll employ
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
ight stop-losses on the stock but I still wouldn’t be surprised to see it go much higher in the next year. The point is, I don’t buy the Peak Oil crisis. And if the Peak Oil crisis isn’t real, and there is still a trillion more gallons of oil to be pumped out of th
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
ground, big oil can and will kill any alternative energy sources from making it into the mainstream. There will be just too much profit at stake.

Case in point. Many people believe that some of the alternative energy sources being discussed today like fuel cells and so forth are n
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ew. In fact they aren’t new at all and have been around for decades. They just have never made it into the mainstream because big oil has always successfully killed their development. In 1834, Thomas Davenport invented the battery electric car. In 1889, Thomas Edison built an
.

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
lectric vehicle using nickel-alkaline batteries. Over a hundred years later, in 1996, U.S. auto giant General Motors manufactured electric cars that ran at speeds of up to 135 kilometers an hour, released zero emissions, and cost only USD $0.16 per litre to operate. What happened to
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
a car that was much more friendly to both the consumer and the environment that the petrol powered car? Big oil killed it because it was big oil unfriendly.

So for this very reason, though I may be wrong, I think the future for alternative energy is just that – in the future

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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