NorthWest Biotherapeutics Inc (NWBO)

[gnawkz]

I am going to admit, I am a bit lost on how there can be "volume" manufacturing for DCVax-L.

In typically manufacturing plants, economies of scale benefits become realized because "Setup" and "Switching" time is minimized and "Run" time is maximized. DCVax-L is manufactured per patient. Thus, there can be no additional "Run" time benefits beyond what a batch is suppose to produce (2-3) years. Adding additional patients does not reduce "Setup" and "Change" time cost that would.

Thus the typical benefits from larger volumes (minimizing Setup & Change Costs) are not applicable due to the customized nature of the treatment. This is from my understanding of how -L and -Direct are manufactured.

My thought is that what ever the initial cost of manufacturing the treatment is, is what it will stay at for the foreseeable future regardless of the increase in patient volume.

This is how I've been analyzing NWBO's future COGS.