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Post by casualinvestor on Dec 21, 2017 9:50:46 GMT -5
It doesn't have to be so dramatic. If Afrezza is priced 30% below competitors' products, he should be able to lock down deals quickly. Whatever it is it would seem Mike, having spent his career doing this, would likely know. Matt from here on PB did once post that the way the deals are done to get preferred coverage would make it hard to be able to lower price enough to counter what the PBM would lose if they missed their target volumes... i.e. MNKD could give it to PBMs and it might still be in their monetary interest to minimize or prevent its use, at least while Afrezza is still only being prescribed by a very limited number of doctors. Hope I'm not misrepresenting what he said. Apply grain of salt. I would certainly defer to those that have worked in the industry, as it's hard to know what goes on behind the scenes unless one has been there. To put some numbers to this (from OOG's posts): Afrezza sells about $550K/week Novo sells about $150M/week If use of Afrezza costs an insurer a 0.5% reduction in their Novo discount, even a 100% Afrezza discount would still cost the insurer money. A price discount for insured people will not increase adoption much.
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