Anavex Life Sciences Corp (AVXL)

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Sales Price Will Not Result from Production Cost

This is a big question. After FDA approval for any of the several central nervous system diseases Anavex 2-73 will treat, how much will Anavex Life Sciences Corp. charge for a daily dosing? Will that price reflect in any significant way the cost of the dose’s manufacture?

If that’s the major fraction of the drug’s sales price, it will be very low. With the greatest dose concentration of, say, 50mg, that’s 20 doses per gram, or 20,000 per kilogram. If it were to cost, say, $400 to make a kilogram of Anavex 2-73, each dose would cost $0.02.

At ten times that, a dose would be $0.20. And for some conditions, optimal dosing may be less than 50mg.

No drug is sold solely at manufacturing cost. Anavex will want to recover, over time, at least, testing costs, marketing (drug representatives going into doctors’ offices to explain the drug), etc.

No way to know with any accuracy the eventual sales price of Anavex drugs. Will be interesting to see how the company elects to price their products.