Replies to post #229030 on Biotech Values

[DewDiligence]

Those prices will almost certainly come down as testing volume increases and the fixed (startup) costs are spread over more units.

[DewDiligence]

Re: COVID-19 testing is a low-margin business

https://www.bloomberg.com/news/articles/2020-03-15/coronavirus-tests-from-labcorp-quest-will-cost-50-to-100

LabCorp confirmed in an email an expected price of $51 for all patients but said the price paid by the government’s Medicare program hasn’t been finalized and the company will not bill until that happens.

I.e., the blended ASP including the private and public sectors will likely be less than $51.

COVID-19 testing is essential for public health, but it’s not an especially attractive business proposition.