Biotech Values

[zipjet]

55-25Elasticity of demand for L:

I can't speak to science or medical practice.

But I have heard enough comments about the high cost of L to the users that it seems pretty clear that the demand will be elastic, that is, demand will increase with reduced price.

You would need to know quite a bit about medical practice and the products that are substituted to do more than guess at the demand response.

But I like guessing. So I would suggest that in the event of a tL launch and a branded generic launch with pricing dropping another 25% that we would see an increase in unit demand in the 10% to 25% range.

I have modeled that case for royalty purposes with and without the elasticity though I have only publicly acknowledged the latter.



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