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biosectinvestor

11/19/22 5:25 AM

#535420 RE: vator #535418

With a gross margin of $100,000, if they had 190,000 patients that would be $19 billion in gross profits. I think there will be a challenge scaling to the levels some abstract number crunching may suggest. A million patients at $100,000 gross profit is a lot, and I suspect there is not enough money for them to scale to that level at a central few locations, and charge that much per patient that they have that kind of revenue. But yeah, the potential revenue scales quickly if the gross margin is that much.

I expect that whomever takes this to full commercialization will set-up shop at special cancer centers in partnership with hospitals to have the production very close to where it is needed. I do not think they will give Flaskworks machines to hospitals to run themselves, that’s a different business entirely and would gut the work they have done and ruin the business and very importantly ruin the development of DCVax.

But fully staffed operations nearby key hospitals or oncology centers, set-up with hospitals as partners and Flaskworks automation, that could be very efficient and could work really well for efficiencies, once they get well established. That would help them to better scale and probably share costs and get buy-in from hospitals to take the technology to another level across solid tumors and cancers.

It’s a different model than other pharmaceutical companies. Dendreon had a similar structure, trying to locate near key centers, though not with care center partnerships. And Dendreon’s manufacturing was a problem and scaling their slow but expensive capacity years before they were approved was a costly disaster for them, not to mention their single dose manufacturing.