Replies to post #251469 on Kraig Biocraft Laboratories Inc (KBLB)

[rayovac812]

A lab produced protein can be made in the usa but not a silk fiber farm

I could see them doing this with cheaper labor outside the US, but with these margins it is doable. More doable elsewhere. No matter what, I think it takes a partner to achieve it.

I have no idea how much it would cost KBLB to manufacture foreign proteins, but reading some facts from 2015, I think we could beat $61,000/kilo costs substantially. The silkworms would make spider silk, spin the cocoon, then we separate the proinsulin and cocoon(if the cocoon could be made with insulin as a bonding agent for the cocoon)...then filter or dehydrate until you have the proinsulin, recirc the water for the next batch etc. You would still have the silk to process for fiber as a byproduct, so you contract to have it processed for medical or military, when the tech gets there.

Here is the post.....again entertain this when we hear more on gen 3 successes........
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This is why I said the markets will not take KBLB seriously until they either announce corroboration with PFE,JNJ etc or with the announcement of any of the targeted proteins in the patent. If they start with proinsulin or others, katie bar the door.

https://www.researchgate.net/publication/306253307_BioProcess_Design_and_Economics_2nd_Edition

From a huge document(gtman1's) and it is the costs under certain circumstances.... to invest in the making of proinsulin. Some folks choose to ignore these numbers but they are important and why gtman said if Spiber & Co. had a protein production breakthrough, we all would know about it. KBLB has done it. Here are the costs and profits if you build a facility that can handle 1803 kilos of proinsulin.

Key Economic Evaluation Results for Human Insulin Production
Direct fixed capital $145 million
Total capital investment $178 million
Plant throughput 1,803 kg/year
Manufacturing cost $110 million/year
Unit production cost $61/g
Selling price $100/g
Revenues $180 million/year
Gross profit $70 million/year
Taxes (40%) $28 million/year
IRR (after taxes) 35%
NPV (for 7% discount interest rate) $250 million

These are fixed costs and they are explained earlier in the PDF starting on the bottom of pg 11.44

Notice the costs per gram $61 per gram...this is $61,000 per kg.(2.2 lbs) A partial reason for being so expensive is the raw materials required....see table 11.12 (pg 11.54)

So KBLB comes in at 300 per KG for Spider silk, and I really don't know if the proinsulin would require further processing to get pure insulin crystals, but I assume it would be more expensive than $300/kg, but still no where near $61,000/kg. It would also be more than 300/kg of proinsulin for KBLB because as gtman explained, the sericin is 1/3rd of the total proteins the silkworm produces. So you tell me does this small example make them a buy out candidate?

When/timing is any ones guess. Do they wait for KBLB to announce ability to make various target proteins, or do they get out in front of that success? I say they wait and verify the ability to produce whatever protein they produce, but this could easily be an exception to the rules.