Quote:
Originally Posted by techweenie
Someone calculated that the annual cost of this drug is $650K per patient at the $750 price. The guy backed off and will name a new price in the next few weeks. Somehow I think it will still be several thousand percent over what it was before he paid $55 million to snatch up the rights.
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I don't think $650 k is realistic.
I read there are roughly 10,000 annual users.
Douchbag said it's a $5 M a year business.
That's, at current price, $500 per patient which at $13.50 per pill gets you roughly 35 pills.
I'm under the impression this is prescribed similar to an antibiotic where you take a course to knock back a bug. Not a Doc so I could be way off base there but that's my understanding.
I think what's happened is he just finished a $90 M series A raise, blew $55 M of it buying a drug with annual revenue of $5 M meaning best case scenario (if that's 100% pure profit which we know it's not) he's looking at an 11 year break even.
IMHO, it's as simple as Mr Douchbag's arrogance caused him to make a monumentally bad deal that he thought he could swing in his favor.
Put another way, he claims the product does not make enough profit, that may be true but it's only because he paid too much for it.