A more logical twist to SO's auto analogy
Jan 3, 2019 14:46:03 GMT -5
edvarney, sportsrancho, and 12 more like this
Post by joeypotsandpans on Jan 3, 2019 14:46:03 GMT -5
In his recent MNKD "update" SO uses an analogy as follows:
Author’s (SO) reply » Jason....
"Whether a product is good or not does not mean an investment is good or not.
Most Americans drive cars from Ford, Chevy, and Toyota. They do not drive a Mercedes, BMW, or Lexus. Further, Americans are actually quite frugal when it comes to out of pocket costs related to Health Care.
Let's assume Afrezza is a 10 on a scale of 1 to 10, and a more standard treatment is a 7. There are many more people that will take the 7 and less cost than take the 10 and more cost. That is simply how things work."
Now let's take a look at this from what I would consider a better analogy which he should have used IMO. Rather than compare Ford, Chevy, and Toyota to the others he mentions I would have used comparing them to Tesla instead. The products he compares them to really give the consumer little benefit other than they are upgraded luxury autos ie., Lexus is an upgraded Toyota, essentially the same as Novolog to Fiasp in my view as a T2.
However, the comparison of Ford, Chevy, and Toyota vs. Tesla, well now you're talking as Tesla is in a different class unto itself, same as Afrezza is in a class unto itself as far as those who rely on it would claim. Tesla is not just about autos, it's also about the technology, in fact those who invest in it are not investing in it so much as an auto company rather they look at it as a tech stock....sound familiar?
So lets get to the cost issue as he mentions the consumers and in this case the patients "frugality" issue. With Tesla the cost is prohibitive for most consumers although with the newer model it is becoming far more affordable. If Afrezza was more affordable the demand for the product would be similar to the relative demand for a Tesla at an affordable price. Why? Because it's human nature to want the best in class if possible.
So it goes back to the insurance issue and the current cost of production of Afrezza based on current economies of scale and current demand. In essence, the deals with Brazil and India etc. may not bring much in the way of upfront cash BUT they will go a long way in improving the production efficiencies and helping drive cost down (again sound familiar ie. Tesla), that in turn should continue to help improve with insurance.
There are far more similarities between Afrezza/MNKD with Tesla (the more innovative and superior product) than the analogy that SO used in his attempt to drive his point home. JMHO fwiw
Author’s (SO) reply » Jason....
"Whether a product is good or not does not mean an investment is good or not.
Most Americans drive cars from Ford, Chevy, and Toyota. They do not drive a Mercedes, BMW, or Lexus. Further, Americans are actually quite frugal when it comes to out of pocket costs related to Health Care.
Let's assume Afrezza is a 10 on a scale of 1 to 10, and a more standard treatment is a 7. There are many more people that will take the 7 and less cost than take the 10 and more cost. That is simply how things work."
Now let's take a look at this from what I would consider a better analogy which he should have used IMO. Rather than compare Ford, Chevy, and Toyota to the others he mentions I would have used comparing them to Tesla instead. The products he compares them to really give the consumer little benefit other than they are upgraded luxury autos ie., Lexus is an upgraded Toyota, essentially the same as Novolog to Fiasp in my view as a T2.
However, the comparison of Ford, Chevy, and Toyota vs. Tesla, well now you're talking as Tesla is in a different class unto itself, same as Afrezza is in a class unto itself as far as those who rely on it would claim. Tesla is not just about autos, it's also about the technology, in fact those who invest in it are not investing in it so much as an auto company rather they look at it as a tech stock....sound familiar?
So lets get to the cost issue as he mentions the consumers and in this case the patients "frugality" issue. With Tesla the cost is prohibitive for most consumers although with the newer model it is becoming far more affordable. If Afrezza was more affordable the demand for the product would be similar to the relative demand for a Tesla at an affordable price. Why? Because it's human nature to want the best in class if possible.
So it goes back to the insurance issue and the current cost of production of Afrezza based on current economies of scale and current demand. In essence, the deals with Brazil and India etc. may not bring much in the way of upfront cash BUT they will go a long way in improving the production efficiencies and helping drive cost down (again sound familiar ie. Tesla), that in turn should continue to help improve with insurance.
There are far more similarities between Afrezza/MNKD with Tesla (the more innovative and superior product) than the analogy that SO used in his attempt to drive his point home. JMHO fwiw
