I am assuming that for acute indications you take
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I am assuming that for acute indications you take the drug until you recover, but for chronic illnesses you would take them forever, right? (Unless of course LL cures some of these chronic conditions...) Anyway, are there any drugs out there that are priced in a two-tiered system? In other words, one price for saving a life, a lower price for managing a condition for the rest of your life?
I would think the total addressable market for LL is going to be huge. And if you have a couple hundred million patients that would benefit, why not make it affordable? You wouldn't need a high price to make a boatload of money, for us as well as Cytodyn...
In the U.S. the market is not as competitive as the rest of the world especially if you have a best in class drug. Mainly because either the government or private insurance covers the expense. But even in those cases you can price yourself out of the market.
Initially leronlimab was going to be priced at $120k a year. I proposed $32k looking at costs involved, having a small in-house distribution arm and making a reasonable profit. That became the price until Vyera wanted an extortionate 100% at their end, then it was $64k. That would have priced it out of much of the HIV market. We do need a reasonable profit so that we can expand our trials.
We would need distribution in place before an FDA approval, but we could get a much smaller mark up from another distributor. With payments to Samsung our end at $35k should still work even though we could charge higher for many indications.
But what about those that don't have insurance or aren't covered by the government. You have a compassionate pricing program that sells the drug at or below cost.
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Just connecting the dots here, and answering the pricing question I posed earlier, but when leronlimab loses patent protection, I can see NP2 contracting the rights to it, producing it and selling at an affordable price. I know its difficult to manufacture and all that, but who better to work that out than Jacob Lalezari?
When I saw he was with NP2 my first thought (which made me smile) was that he wants approvals so when protections run out he can have NP2 make it. Which certainly gives him incentive to make sure those approvals get done.
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