Replies to post #7286 on Pluristem Therapeutics Inc (PSTI)

[CryptoCells]

I believe they announced the plan to build the facility in July 2011, and received FDA approval in June in 2014.

Much of the time involved in establishing such a facility revolves around standards compliance, not only in the construction itself but in approval processes.

My guess is that the turnaround time for a self funded building project would be reduced compared to the first facility, but it would still take a good amount of time. Taking over an existing space with standards already in place is an option, however you would still have to hire many specialized employees quickly, and train them...adding to the production timetable.

A manufacturing partnership allows for quicker access to precertified space, and labor.

I remember Zami saying that the existing facility has $1 billion annual production capacity, making the retail cost per dose about $6700. To your point, good problem to have, but a potential problem nonetheless if we assume a year plus build process otherwise. Given that the source material for these products is a free placenta, theres pleny of margin there to address the scaling concern with minimal impact to profitability. I think there is some credence to Allos thinking regarding Lonza.