Anavex Life Sciences Corp (AVXL)

[Gator328]

You're right, to an extent:

Here's a question though. Whatever a company puts into buying/partnering with Anavex, it will need to recoup that and more.

Then we have issues of generics hitting the market after X number of years. And issues with insurance companies being willing to reimburse the high drug costs. Insurers are usually reluctant to pay out huge amounts for new drugs -- even if the data is clear that they work. It's a cruel industry to be sure but that's how it usually goes.

So we have a drug compound that might work much better than the current standard of care, but will people be able to afford it out of pocket? Or will the insurance companies hem and haw until the generic hits the market, and that is when they agree to reimburse it?

The cost of the drug is going to tied into the purchase/partnering price. I think a lot of people aren't looking at the business side of the healthcare industry, and are just assuming that insurers will automatically cover A273 the day it is approved. It usually doesn't work like that.