NorthWest Biotherapeutics Inc (NWBO)

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This is key...

Increased production will lower costs.

While BCG wants to claim credit for identifying the Experience Curve, it was first noted in aircraft manufacturing during WW II and remains a key concept when understanding costs within the value chain. This concept states that there is a consistent relationship between the cumulative production quantity of a company and the cost of production. Consequently, the more experienced a company is in manufacturing a specific product, the lower its cost of production. And that means increased margins (for profit) because, as the total production capacity doubles, the value-added costs decline by a constant percentage. (The value-added costs include the cost of manufacturing, marketing, distribution, and administration.)