Hi Jonty, the figure was taken from a quote here - ”costs us...

Hi Jonty, the figure was taken from a quote here - ”costs us approximately $100 to extract a kilo of narcotics out of poppy capsules, and we think our competitors are around $300”; https://www.themonthly.com.au/issue/2017/february/1485867600/hamish-mcdonald/new-opium-wars

had thought it was investor preso but couldn’t recall... so went back to search. Have relooked at the figures and your quite right in for eg 2018 group overheads were
$19m aud and total sales volume target for 2018 nrm was 52 tonnes - which would be $365,000 aud Per tonne - however between fy 17 and 18 the business changed from 2NRM products to 4NRM, 2API’s and 32 tablets..https://www.pallapharma.com/files/TPE%202018%20Half-Year%20Results%20Presentation.pdf.... so not sure how much of the overheads were in the new product lines scale up costs and how much for the nrm. What are your thoughts?

it seems the market in the US has been disrupted due to the number of companies who have faced lawsuits for allegedly bribing doctors to prescribe their products. In response a number of these former Pharma have gone into administration or sold their divisions but this has only been quite recent eg late 2019 for some ; taking out the misuse factor these products are a necessity in medical care. I might be wrong but maybe Palla is well positioned in the middle of the incumbent competitor upheaval eg lower costs and clean hands / no history whereby they would have the risk of litigation.