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hurley cruppers

09/19/17 7:38 AM

#6482 RE: lasers #6481

lasers, can you clearify to pbor in post 6468 what you meant
on profit

post 6468 by pbor, The only thing I don't understand is that although MACI is a very unique solution, why is it sold at such discount price. (I remember lasers mentioned there is $1000 net profit on MACI per procedure)
Other companies sell orphan drug for up to hundreds of thousands.
I'm not arguing that the price of the product should be higher, and just trying to understand how do they come up with prices.

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From the recent CC,

Gross profit for the quarter ended June 30, 2017 was $9.3 million or 55% of net revenues compared to $5.5 million or 43% of net product revenues for the second quarter of 2016. Excluding the impact of the $1.4 million partial reversal of the reserve, gross margins were 51% for the second quarter.


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IMHO, when a company has operating expenses, it takes a certain number of procedures to do just to breakeven or cover the nut.
After that, any procedures over and above the minimum floor are
gravy (profit over and above cost of goods sold). The profit margin on 300 Maci procedures is not the same profit margin on 20K Maci procedures once the company does enough procedures to cover the nut. Therefore you can not assign a $1000
profit per Maci procedure as a blanket number across the board.