mattkid - thanks for rerunning the numbers.I am confused by your...

mattkid - thanks for rerunning the numbers.

I am confused by your notes regarding the reduction in production costs. On my reading of the numbers in your text, you are actually saying that production costs will fall by about 3/4 from $19.50 per unit to $5 per unit once you go past 2 million units of production.

Surely not??

Even if you are assuming that they are halving - which is what your words say - this seems aggressive to me. But that is only a hunch.

Also - I would want to be very very certain that there is a long-term future for Fonda before putting any terminal value onto the product at all. I don't know enough about the competitive landscape, but given the rate of change in the market for anti-coagulants, how confident can you be that Fonda will still be in use in even 15 years time?