Anavex Life Sciences Corp (AVXL)

[BakedLangostino]

I agree. But unless we partner with a major pharma, we're going to have to compete with the mabs and ultimately the doctors who prescribe them and have cozy relationships with the sales reps. Call my cynical but I don't think it's as given as many here presume that once Blarcamesine is approved it will automatically become the standard of care. Follow the money. Doctors, hospitals -- they all operate on the for-profit model in the USA and more visits for infusions, MRIs, etc means more money to be made. So there will be some doctors, perhaps many, who initially push for the more dangerous and more expensive alternatives unless Anavex can find a way to level the playing field.

One way to do this is through pricing. Come in well below the cost of the current standards of care and now insurance companies balk at paying the higher rates for the mab drugs.

Insurance medical directors fight with hospitals and doctors all the time about repricing things. A hospital can admit someone for several days and the insurance medical director will argue that it was unnecessary. A lot of times the hospitals and doctors ultimately acquiesce or negotiate a lower amount because they want to be paid.

A lower price point makes for a more compelling case for insurers to force providers to prescribe Blarcamesine. The fact it's safer and more convenient is secondary to the fact that it's more profitable to do so.