Low margin ? I cant believe you just said that . Let’s help you one last time...because I have other posters to respond to.
In Japan, the Japanese Governments National Health Insurance set reimbursement for Temcell at the equivalent of approx $7500 at today’s exchange rates for 72m cells per bag. This is the licensed brand name for our first generation product Remestemcel which is not as potent as Rexlemestrocel and should be considerably more expensive per million cells to produce at low volume. Hence , even if we used our 1st generation therapy by way of example, that would equate to a 6m cells being sold as a cost of $625 per 6m cells in Japan ….but that is after JCR have made a handsome margin and we have received royalties in the 20’s per cent.
I would estimate that our COGS for CLBP would amount to no more that $500 per treatment . Furthermore the potential pricing, when contrasted with the costs of spinal fusion surgery, justify a sales price of at least $12-15k per treatment in my opinion . On the assumption of 15% market share by 2030, with peak US sales of over $2bn and royalties from ROW , the NPV valuations would be close to our Heart Treatment. All that is left is to ask Grunenthal or another player or royalty partner, to find $25m for the confirmatory trial …and I believe the share price will be move substantially.
SO , Sector, are you saying that 95%+ is low margin ?
Lastly, if you can help slow , let alone significantly halt, a rapidly degenerative condition like CLBP, just like heart, you allow the patient a quality of life that they would be prepared to pay enormous sums for….get realistic and stop wasting everyone’s time on these threads with vastly inaccurate information. If you cannot see the irony of using the testimony against Mesoblast of a man linked with the IP of an similar alternative autologous therapy which has not been proven as efficacious as ours in a phase 3 trial (unless you can shown me otherwise?) then you really are scrapping the barrel. OP
DYOR
MSB Price at posting:
$1.35 Sentiment: Buy Disclosure: Held
(20min delay)