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What we know is that AMRN sold Vascepa at an approx. price of $144/script in Q4 2018(539K scripts x $144 = $77 MM).
Retailers like CVS and Walmart are selling the same product for $300-350. (Can’t figure out how to cut and paste an iPhone photo into IHUB, but you can call CVS yourself if you really think I’m lying.)
So there is at least 100% markup from wholesale to retail prices.
I AM NOT SAYING THIS IS INHERENTLY EVIL, despite your characterization of my argument.
I repeat, the point is that drug pricing affects everyone, from the consumer of V to those that pay private insurance premiums and taxes supporting public coverage like Medicare. We all have an interest in this issue, and I applaud the Trump administration for attempting to do something to reign in the growth in these costs. For the same reason that utility costs are regulated (this product is essential to public health and safety), drugs costs have to be controlled reasonably.
Have a good day.
Speaking of facts:
Walmart just quoted me $338 for a 1 month supply of 120 capsules. Thanks for that great shopping advice RAF! Also see the attached CVS prescription receipt if you don’t believe my facts on its price.
IMG_0110.HEIC
If you really like facts, see the attached piece on the Trump administration’s efforts to reign in drug pricing, with particular focus on middlemen. I think there may be some capitalists in that administration.
https://www.washingtonpost.com/news/powerpost/paloma/the-health-202/2019/02/01/the-health-202-02012019-health202/5c5303da1b326b29c3778d32/
The point has nothing to do with “gross and net.” The world is full of products that get sold at wholesale price by a manufacturer to a distributor, who sells to retailers, who in turn sell for retail price. The price differentials in between wholesale and retail price are the revenues of those players in the chain after the manufacturers. Nothing wrong with any of this if we are talking about T-shirts or washing machines.
My point is drugs are different because all people need them to live and be healthy. You may not agree that drug pricing should be looked at differently for this reason, I don’t know. But please take a moment to consider the real point being made before making obtuse and insulting suggestions for others to do background reading.
I sell my professional services directly to a client.
It is based on your prior post calculating that Amarin sells the product for $144/script. I’m assuming CVS buys from Amarin, but maybe there is some other middleman in between them. Either way my point is the same and valid.
CVS is charging $300 for a 30 day supply. Pretty outrageous that these middlemen get a100% markup for just processing a script and billing an insurer.
Much of the excess cost in our system is the middlemen. I say let the Amarins of the world sell directly to consumers with a script. Of course we are going in the opposite direction now with CVS swallowing Aetna. If we don’t figure out how to shrink the massive cost we all pay for the layers of profit between drug manufacturers and consumers, it will not be possible change the trajectory on drug costs.
Just sayin.......
Maine Law, actually part of USM in Portland.
The universe has a way of working things out sometimes. After being rejected by several national law schools I decided to apply to some regionals and got into Maine law. Small but very good school and odds are much better in a small pond. Did well and got noticed by law firms in the NE and got hired by the best firm in my home state, VT. Been there for 31 years. Only lawyer in my firm to ever argue a case at the SCOTUS. AMRN will help pay off kids student loans and fund early retirement. Big picture with this stock is that faith based on some fine collective knowledge has rewarded. Be thankful all.
Everybody hates lawyers until they are in trouble and need a good one.
You don’t get it
Yes you should be able to do a rollover.
Hey Bud, did that and stand by my point that the market is not a reliable judge of the credibility of new reports about alleged wrongdoing by politicians.
News flash: whether the President of the United States is or was a participant in criminal conduct is not and should not be a partisan issue. The last generation of Americans was able to see this and behave in a way that history has shown was honorable and fair. The struggle of many in this generation to grasp this truth is both disappointing and a troubling sign that amoral political tribalism has to some become a more attractive force than the rule of law.
Really? The market is now an indicator of whether new information about the US President’s alleged involvement in criminal behavior should be given credence. Here’s a suggestion. Use your own God given abilities to judge what is credible and what is not, because invoking the market’s ability to make this judgment just tends to reflect your inability to do it for yourself.
Thanks for your thoughts Chas. So much apparent confirmation bias on the board, it is useful to get some more objective analysis.
Bouf
Rose, why do you think label expansion is a given? No risk at all?
I had big warts on feet clear up completely after going to 4 GMS/day.
JL—interesting history, but to me the more pressing probability question is approval of expanded label and scope of same. Is there any material risk of non-approval? I have seen way to much gibberish about MO and such, but no useful analysis of this question. Very interested in your thoughts or those of others on this critical Q.
Bouf
Hilarious!!!!
This board could use more humor, as the long and bumpy road seems to have frayed some nerves.
Big Repatha price cut announced. Has to be in anticipation of Vascepa, no?
https://www.cnbc.com/2019/01/07/amgen-ceo-on-drug-price-cut-too-many-patients-struggled-to-pay.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
JL—thanks for the thoughtful response. One one level we are all speculating based on limited information, but I will take your educated speculation any time. To me the strongest tell is the ramp up of supply. Just no reason to do that unless there is a reasonable chance the demand will exist later this year, and to show the FDA the capacity will exist.
Bouf
The question is why mgmt. is not making pubic noise about pushing for expedited review, as you are right the standards seem to be met by VS. Hoping this is obvious enough for an on the ball person at JPM event to ask the Q and get an answer.
China progress report would be nice before Feb. 2019 when they report for Q4 and 2018
The Chinese partner announced start of a clinical trial there in Jan. 2018. At the time they said results expected in 2 years. The R-IT results have to make the approval in China easier and hopefully quicker. Anyone with insight on impact of R-IT on Chinese approval?
WSJ Report today on fast-track drug approval in China
https://www.wsj.com/articles/big-pharma-wins-drug-approval-in-china-ahead-of-west-for-first-time-11545137592
Any reason Amarin would not try to get on this path to approval in China?
Agree with all except the patents buyback. I have not read those deal docs, but I assume Amarin kept the right to pay off and buy back patents whenever it chooses to. The BO funds could be used to close on the payoff to Pharmakon. It can all be handled at the same time, just like paying off an existing mortgage on a house when it gets sold. So secondary proceeds can be used to create profit, not pay off debt.
Nice move, strengthen bargaining power all around with only minor, temporary hit to PPS.
Omega 3s to treat depression....
Good recent article on topic.
Cigna has been covering my off label VAS script for 6+ months.
None of the valuations I have seen factor in this potentially huge additional market.
I can imagine AMRN mgmt. struggling for a handle on what this might add to share value, as well as potential bidders.
Maybe the next big study.....
https://www.health.harvard.edu/blog/omega-3-fatty-acids-for-mood-disorders-2018080314414
Not sure BB has blocking position in all cases. Takeovers can also be done by a process called a scheme of arrangement under U.K. law, and this requires only 75% approval. We would need a U.K. M&A person to figure out which way this one might go. Certainly more complex given that Amarin is a U.K. registered co. trading on a U.S. exchange.
GIA or not......
We can’t forget the personal financial incentives of the decision makers. Per the most recent proxy statement, executive incentive compensation (options and restricted shares)all vest on an accelerated basis in the event of a change of control. I assume the same is true for directors.
Powerful incentive to cash out big on a BO at a fair price.
They will each have to ask: am I better off with a BIG bird in the hand (plus shares in the acquirer, if it is a cash and stock deal), or the chance of a bigger payout over time (with the myriad risks that always attend the future).
Each will have their own personal considerations, but my take is human nature will drive most to want to cash out.
Bio.....I can’t understand why they would wait until 2019 unless they have already asked for Fast Track and been denied. V seems to fit all the criteria for FT approval. Insight from anyone w/better understanding of new process appreciated. To me, this seems to be the most important mid-term issue we face.
Happy Thanksgiving to all.........
Seattle Genetics gets FDA approval under new process 2 weeks after submission and 2 months after top line results.
Any reason V cannot get FDA approval on same pace?
Seattle Genetics stock jumps 6% after new FDA approval for lymphoma treatment https://www.marketwatch.com/story/seattle-genetics-stock-jumps-6-after-new-fda-approval-for-lymphoma-treatment-2018-11-16?siteid=yhoof2&yptr=yahoo
Trying to pitch in with some twitter pushback to Matt the Herpester and his tribe.
Read the NEJM article. The mineral oil is a nothing burger. This article is like Trump claiming that Central Americans fleeing gang violence is a national security threat to the USA.
— Andre Bouffard (@Munk414) November 10, 2018
If they don’t accept a rebuttal article, one more piece of evidence they conspired.
Even better is a responsive piece on SA showing why it is factually wrong and likely not published in good faith. Isn’t SA an open platform?
NBC piece
If this is so clear and beyond dispute why has it not been recognized and acted on by big money pharma which has every incentive to fill the pipe.