CUV 3.92% $15.65 clinuvel pharmaceuticals limited

Ann: Chair Letter to Shareholders, page-18

  1. 310 Posts.
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    I caution you on giving financial advice. It's risky...just ask the banks.

    The blind will follow. Kodak knew the most about cameras. Martin Shkreli knew how to reprice drugs. Lehman Brothers were excellent bankers. Cilnuvel know best, until they don't.

    Anywho, some actual analysis;

    To price for Vitligo they would have to cannibalise the entire EPP market. Or set a dual pricing scheme, something that is highly unethical. Essentially they can't charge 50k for an EPP implant & 2k for vitiligo. Anyway on Vitiligo, why would insurance pay out for a clinically mild cosmetic condition? It simply wouldn't. No doubt people will voluntarily pay for it, especially at $500-2k. Problem is dual pricing.

    Pricing Scenarios
    1) EPP Pricing = no real vitiligo market. (High margin, low volume)
    2) Vitligo pricing = cosmetic only, non-insurance market & EPP patients get affordable care. (Low margin, high volume)
    3) Research a marginally different delivery method complete trials & have two products for two markets.

    Take your pick or prove me wrong.

    Note: I think the managers of CUV are doing an excellent job, hence why I got interested in researching them. I just think the buyers of this companies stock are pay an insane price.

 
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