Thanks @Hdavid92, I get that and yes that's great but if we're locked into a few cents per test then it's not going to be meaningful. I just don't understand why it would be some huge secret.
Very simplistically - just trying to backsolve/sense check based on average industry data which I've found:
Assuming AT1's tests sell for $15 (before any g'ment subsidies)
Pharmacy margins are around 22-25% (on higher-end for non-prescription products) - so I'll take 25% to be cautious
= $12 wholesale price
Device distribution margins are generally around 40%, but given the high volume and white-labelling, let's low-ball it and assume half that @ 20%. You'd probably assume higher given Access Bio over a barrel due to the antibody test hiccup
= $2.40
Distributor margins to include all freight and packaging costs. No promotional materials required given it's a B2B sale.
How wrong am I on this?
AT1 Price at posting:
32.3¢ Sentiment: Buy Disclosure: Held
