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Wednesday, June 30, 2021 5:31:19 AM
The costs associated with manufacturing of a drug that is still in development are catagorized as R&D. I can certainly see a solid argument that the costs of "Specials" manufacturing should go to COGS, but this is an edge case so not going to war on the issue.
The revenue line that has been reported for several years is consistent with what we would expect from Specials. We know the program has a capacity for 4-6 patients/month. Logistics would preclude it actually producing that much though (you can not freely schedule the patients). The revenue had been slowly growing from about to about $700K/q in Q4 '19. Discounts always exist in this field, and 10 patients/Q at $70k each looks reasonable.
Then the revenue fell to 0 in Q2 '20 with Covid, and has now slowly grown back to less than half the previous levels. That all looks to be a reasonable pattern.
If this is the revenue from Specials, then they are not manufacturing capacity limited as of today. So do not see why anybody expects some huge increase due to Sawston this year.
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