Biotech Values

[DewDiligence]

Re: SRDX device for AMD/DME



>> what is a reasonable estimate of sales price for this device? Assume 2 years treatment with a single implant (10 minute procedure) is significantly more effective than the two current FDA approved treatments.<<

Under these assumptions, the device ought to be priced commensurately with two years of treatment by competing products.

Visudyne is priced at about $5,000 per infusion; if four treatments are needed during a two-year period, that comes to $20,000. If Triamcinilone is added to Visudyne off-label, as many ophthalmologists are now doing, add another $1,000 for the intravitreal injections to bring the total to about $21,000. (The cost of Triamcinilone itself is very low because it is generic.)

Macugen is priced at roughly $1,000 per eye per injection, excluding the doctor’s markup and charges for the injection, so let’s say the total price per procedure is $1,250. During two years, a patient would get seventeen injections for a total cost of $21,250 based on the above assumptions.

Note that Macugen’s price would nearly double if both eyes are treated, while Visudyne’s price would be nearly unchanged.

By the time SRDX’s device reaches the market, there are apt to be other competitors including Lucentis, but these will likely be priced in the same ballpark. Thus, I think it’s reasonable to expect that SRDX’s device, under your assumptions of two-year safety and efficacy from a single implant, could be a compelling treatment option priced in the neighborhood of $20,000.