much more goes into the "cost of sale" before the profit bottom line; sales, marketing, logistics, training docs, travel expenses, meals, etc... generic buprenophine pill requires none of that.. it's a commodity and priced accordingly.. unfortunately probuphine competed directly w/that commodity and rolled out like any other pill which made its pricing challenging for uptake... Apple Tree thought it would be a blockbuster despite the operational challenges inherent in the implant process and insurance coverage... training those DEA docs throughout the country in the belief they would themselves take a profit hit and buy the inventory in the hope they would get paid later by insurance was more than naive, it was a grave mistake (millions squandered and precious time lost) .. a more profitable strategy: much lower initial price of probuphine in line with but above the generic pill given its value in compliance, efficacy as well as non diversion profile... roll out the initial launch to: VA, HMO, prisons; all of which have staff on hand to do the minor procedure without fuss (that also would have cut the training and marketing costs significantly) ... subsequently, when insurance was on board and logistics glitches ironed out, make it available to the docs, while working with the government to make the product available to every primary care physician's office... in all fairness it's easy to see the strategic mistakes after the fact.. but that's why good business people get the big bucks.. they can foresee and act accordingly... clearly Apple Tree & TTNP management are not in that class .. hope a stronger management team takes possession because probuphine is sorely needed in the marketplace right now
