PIQ 1.41% $1.05 proteomics international laboratories ltd

The cost to end users of the test has been rubbery as they have...

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    The cost to end users of the test has been rubbery as they have been scoping the tolerance for the price point. As usual the company will strive to have the price set at a point where it’s acceptable but not too low so to maximise revenue but not too high as to restrict its uptake and utilisation. As stated they now have survey results giving them indication of where that price point may be USD$100-300 being reasonable $500+ unreasonable. The number $150 was used to plug into the numbers for the economic benefit model. That benefit obviously changes if the test is ultimately offered at $100 or $300 per test.

    As a company with thoughts of maximising revenue they would be thinking on how close they can get to offering the test at $300 without significantly impacting take up of the test. If insurance companies in particular stand to make significant savings by having their insured base take a $300 test it makes sense they would cover the cost as $300 will pale into insignificance compared to the cost of dialysis. For uninsured people is $300 too much? So where the actual consumer cost lands is not yet set but it would appear they have a window.

    Now that just covers the USA, what about other countries? Is the plan to charge country by country. Say $USD150 may be ok in the USA but the equivalent cost may not be ok for Indonesia for example. Could they get away with EUR$150 (=USD$181) for European countries? Charge the market what it can bear and have “subsidised” costs in poorer countries giving access to the most people or play hard ball and set a global price centred around the US and if you can’t pay you can’t have approach.



 
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