I have been thinking about the unique advantages of manufacturing bavituximab. CP, reading your post and listening to the Novartis CEO, clarified some thoughts.
Here is a mix of close paraphrases of CEO Jimenez, and my own thoughts.
“last year Novartis acquired GSK’s immune oncology portfolio to compliment their own I/O.
They have broadened their line (I/O): They want all the ingredients in their kitchen, for making enchiladas.
They believe that the winners in I/O are going to be be those who own all of the elements of the combinations so that they’re not having to “split the economics”: You own all of them.”
Once Bavi is commercially approved, I see two distinct economic advantages of “owning” anti-PS tech. First is the right to manufacture, currently bavituximab, and use it in house at wholesale cost. Secondly, there is the economic advantage of selling it at retail to users in the wider I/O market to use in their combination I/O treatments.
I believe these are core economic advantages of owning all the elements of your I/O combinations. Your competitive cost for treatments in the I/O market has distinct advantages over your competitors, building your bottom line, and longer term competitive advantage.
If you own the rights to production, and your immuno-biologic is uniquely synergistic with a field of other I/Os, then you can exclusively supply oncology users in the fast growing immuno-oncology market with its wide horizons of time and increasing possibilities.
The major profits will come through manufacturing Bavi for the wide oncology market, and the newly expanded Avid, with margins of 50%, almost has a license to print money: )
Locked down by the IP.
AZN does not necessarily have the pole position.” SK.
IMO
sunstar
