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Chiugray

10/16/22 10:53 PM

#522408 RE: ae kusterer #522403

Kusterer,
I don't have any insight into the cost structure at King's college, and I'm not an insider in drug manufacturing. My pure guess would be $100K to $200K, by a slow, cheap, manual labor processing way.

Generally the cost of manufacturing of a drug during a clinical trial or even at initial launch under low volumes will always be multiples higher than at normal production levels.

The formula roughly:
+ incremental direct costs
+ an allocated overhead costs
+ amortized fixed costs
+ cryogenic shipment
+ rush fee surcharges
+ pricing based on low volume purchasing (shipping, supplies)
+ inefficiencies of mistakes/waste
= total cost
Divide by the number of units produced
= The cost to manufacture 1 batch, fully loaded cost
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biosectinvestor

10/16/22 11:01 PM

#522410 RE: ae kusterer #522403

For 1 shot, no long-term storage and maybe a different process. I agree they should be able to eventually have scale and other opportunities to lower costs, and likely for the CDMO, which is just labor basically and has been paid all the way along the way for everything else, their cost is lowish. But you still have a very long trial and the cost of that capital to get here. It’s not just the immediate input costs.