The Therapeutic price for a vial of Daxi is determined by a government formula. RVNC is required to provide their Aesthetic US sales for all vials sold each year. Also included are all FREE vials provided as part of a sale. Staff Training vials are NOT included in determining the "Average Vial Sales Price". Allergan gives accounts staff training vials and makes the account sign a document which says the account will NOT sell the staff training. Reps use the Staff Training vials as a way to lower the Botox price to practices knowing ALL practices sell the staff training vials. When using a staff training vial on a paying patient, the practice will take a lot number off of a paid vail and document it on the patient chart. If an audit is done of staff training vails, their lot numbers will never appear in the any patient charts. Yet the vials are missing from the practice inventory. This is 100% illegal and the FDA just looks the other way.
Back to the "Average Price Calculation"...the average price is determined by the Aesthetic Sales Dollars divided by the number of vials sold plus free units...The US Government then takes this "Average Vial price" and discounts it 30% to 33% which created the US Therapeutic Price...Government always gets the best price.
This is why Allergan raised their Aesthetic vial price of Botox this year....this automatically raised the Therapeutic Price of a vial of Botox, making Allergan an additional $50 million just from the price increase from Therapeutic Sales. If Allergan loses cosmetic market share, the revenue increase on the Therapeutic side more than makes up for the lost aesthetic revenue.
Since the Aesthetic and Therapeutic products are the same and owned by the same company, this is the government's way of pricing.
Evolus is trying to side step this government calculation with the Therapeutic ownership of Jeaveau by a different company.
