Anavex Life Sciences Corp (AVXL)

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Implications for the medical insurance industry.

As a contravening position to my earlier post (where I claimed that approval and use of 2-73 will be a major threat to large segments of the medical care industry, and, therefore, early announcements of 2-73 efficacy will not be well-received by the “experts”), one must consider the implications for the medical insurance industry — which is burdened with ever-increasing costs to care for senile dementia (Alzheimer’s), Parkinson’s, and several other neurodegenerative diseases for which there is considerable animal and some human data showing profound treatment efficacy with 2-73.

What will be the results when medical insurance companies come to the realization that prescription of 2-73 to those showing the earliest, slightest Alzheimer’s or Parkinson’s symptoms will terminate the debilitating progression of those extremely costly diseases?

Insurance companies will be able to save billions of dollars. Might the medical insurance fraternity bring pressures to bear on FDA for “compassionate approval” of 2-73?

And, I’m certain the pricing wizards at Anavex will take all of this into consideration. Most of us have pondered what the company might charge for a daily or weekly dose of FDA-approved 2-73 (or any of the other in-the-pipeline drugs). I’d hope it will be minimal, say $3 to $5 a day (I could afford that). But, given the profound insurance savings, Anavex may charge much larger fees, which the medical insurance companies will still accept, resulting in reduced overall costs (no more institutional care costs, etc.).