|
|
Post by matt on Mar 2, 2020 16:16:45 GMT -5
Did anybody notice the significant change in Afrezza prices as of March 1? The official prices from CMED are updated once a year, in March, so I think these are going to be the new prices going forward.
The prices originally published ranged from 1563 to 3925 Reals (about $350 to $875) depending on the package size. The prices published for March 1 range from 93 to 209 Reals (about $21 to $47) for the same package sizes. Those are the PMC 20% prices, the maximum that can be charged to a patient by a retail pharmacy in the states with a 20% sales tax rate. The maximum import prices are now 48 to 109 Reals ($11 to $24 per package) and the import prices has to be shared between MNKD and Biomm because the pharmacy mark-up and all taxes are regulated.
I was surprised that the original maximum consumer prices were set so high given that CMED is supposed to regulate new drugs at similar prices to existing drugs with the same active ingredient. The new pricing brings Afrezza in line with those of other imported insulins (Humulin and Novolin R are both 65 Reals for a 10ml vial, about $15), and modestly higher prices are allowed for pre-filled injector pens (Novolin R is 129 Reals for five pens of 3ml each, about $29, and five 3ml pens of Lilly lispro are 301 Reals, about $67).
While these prices are substantially lower than the temporary introduction price, it doesn't appear that Afrezza is being treated any better or any worse than the other foreign insulin manufacturers. However, with the lower prices the question becomes whether MNKD makes any gross profit at all on Brazil sales. If they do, it can't be much.
|
|
|
|
Post by mytakeonit on Mar 2, 2020 17:03:45 GMT -5
Not necessary because we just have to keep the production lines running to keep the cost per unit down. Then we can return to the US and give Afrezza away for free.  Until the scripts start to rise. But, that's mytakeonit |
|
|
|
Post by neil36 on Mar 2, 2020 17:08:05 GMT -5
Good find Matt.
Interesting that MC emphasized Brazil as a cash market where it would be sold to an affluent upper class and not part of the government formulary. Interesting to see how this reconciled over time.
He did say part of the next shipment will ship in Q1 (later this month?), and the majority in Q2. Hopefully we will get a dollar amount associated with each shipment, close to the time of shipment, rather than waiting until the next earnings call.
|
|
|
|
Post by peppy on Mar 2, 2020 17:08:39 GMT -5
Did anybody notice the significant change in Afrezza prices as of March 1? The official prices from CMED are updated once a year, in March, so I think these are going to be the new prices going forward. The prices originally published ranged from 1563 to 3925 Reals (about $350 to $875) depending on the package size. The prices published for March 1 range from 93 to 209 Reals (about $21 to $47) for the same package sizes. Those are the PMC 20% prices, the maximum that can be charged to a patient by a retail pharmacy in the states with a 20% sales tax rate. The maximum import prices are now 48 to 109 Reals ($11 to $24 per package) and the import prices has to be shared between MNKD and Biomm because the pharmacy mark-up and all taxes are regulated. I was surprised that the original maximum consumer prices were set so high given that CMED is supposed to regulate new drugs at similar prices to existing drugs with the same active ingredient. The new pricing brings Afrezza in line with those of other imported insulins (Humulin and Novolin R are both 65 Reals for a 10ml vial, about $15), and modestly higher prices are allowed for pre-filled injector pens (Novolin R is 129 Reals for five pens of 3ml each, about $29, and five 3ml pens of Lilly lispro are 301 Reals, about $67). While these prices are substantially lower than the temporary introduction price, it doesn't appear that Afrezza is being treated any better or any worse than the other foreign insulin manufacturers. However, with the lower prices the question becomes whether MNKD makes any gross profit at all on Brazil sales. If they do, it can't be much. first price was this cheap. (In the letter?) then their pricing book came out with the higher price. now you are saying it is priced back to cheap in US dollars. On the bright side, our scripts will pass 1000. Not on symphony. |
|
|
|
Post by rfogel on Mar 2, 2020 17:28:16 GMT -5
|
|
|
|
Post by ktim on Mar 2, 2020 17:37:22 GMT -5
Good find Matt. Interesting that MC emphasized Brazil as a cash market where it would be sold to an affluent upper class and not part of the government formulary. Interesting to see how this reconciled over time. He did say part of the next shipment will ship in Q1 (later this month?), and the majority in Q2. Hopefully we will get a dollar amount associated with each shipment, close to the time of shipment, rather than waiting until the next earnings call. Since they didn't quantify the size of shipment on this past CC, it appears they have no intention of releasing that info until required to do so in the next two quarterly CC. |
|
|
|
Post by mytakeonit on Mar 2, 2020 19:16:13 GMT -5
All we know at this time ... is that it's bigger than a bread box.
But, that's mytakeonit
|
|
|
|
Post by peppy on Mar 2, 2020 19:19:54 GMT -5
Did anybody notice the significant change in Afrezza prices as of March 1? The official prices from CMED are updated once a year, in March, so I think these are going to be the new prices going forward. The prices originally published ranged from 1563 to 3925 Reals (about $350 to $875) depending on the package size. The prices published for March 1 range from 93 to 209 Reals (about $21 to $47) for the same package sizes. Those are the PMC 20% prices, the maximum that can be charged to a patient by a retail pharmacy in the states with a 20% sales tax rate. The maximum import prices are now 48 to 109 Reals ($11 to $24 per package) and the import prices has to be shared between MNKD and Biomm because the pharmacy mark-up and all taxes are regulated. I was surprised that the original maximum consumer prices were set so high given that CMED is supposed to regulate new drugs at similar prices to existing drugs with the same active ingredient. The new pricing brings Afrezza in line with those of other imported insulins (Humulin and Novolin R are both 65 Reals for a 10ml vial, about $15), and modestly higher prices are allowed for pre-filled injector pens (Novolin R is 129 Reals for five pens of 3ml each, about $29, and five 3ml pens of Lilly lispro are 301 Reals, about $67). While these prices are substantially lower than the temporary introduction price, it doesn't appear that Afrezza is being treated any better or any worse than the other foreign insulin manufacturers. However, with the lower prices the question becomes whether MNKD makes any gross profit at all on Brazil sales. If they do, it can't be much. Here was your original post. mnkd.proboards.com/post/192877Afrezza pricing finally announced in Brazil. The official prices in Brazilian Reals (US dollars in parentheses) are: 8U X 90 70.63 ($17.14) 12U X 90 105.95 ($25.71) 4U X 60, 8U X 30 47.09 ($11.43) 4U X 30, 8U X 60 58.86 ($14.29) 8U X 60, 12U X 30 82.41 ($20.00) 4U X 90, 8U X 90 105.95 ($25.71) These are “factory prices” and represent the maximum amount Biomm can charge any pharmacy for the product. MNKD is paid from the factory price. The maximum price that can be charged to consumers depends on the state in which they live since the controlled prices include all taxes. However, for reference the 12U X 90 pack has a maximum consumer price of 209.11 ($50.77) in the states with the highest tax rate, so about double the factory price. The difference between the “factory price” and the “maximum consumer price” goes to sales taxes, import duty on foreign medicines, and includes a retail markup of approximately 32% for the pharmacy. For reference, GoodRx shows a lowest price for the 12U x 90 kit of $1,020 at Costco, so Brazil prices are about 2.5% of US prices for the consumer. On the original thread. mnkd.proboards.com/post/192877/thread |
|
|
|
Post by neil36 on Mar 2, 2020 19:23:46 GMT -5
FWIW: BIOMM was up 6.63% today
|
|
|
|
Post by matt on Mar 3, 2020 8:09:51 GMT -5
Here was your original post. mnkd.proboards.com/post/192877Afrezza pricing finally announced in Brazil. The official prices in Brazilian Reals (US dollars in parentheses) are: 8U X 90 70.63 ($17.14) 12U X 90 105.95 ($25.71) 4U X 60, 8U X 30 47.09 ($11.43) 4U X 30, 8U X 60 58.86 ($14.29) 8U X 60, 12U X 30 82.41 ($20.00) 4U X 90, 8U X 90 105.95 ($25.71) These are “factory prices” and represent the maximum amount Biomm can charge any pharmacy for the product. MNKD is paid from the factory price. I remember that post (I have not gone THAT senile, yet) but there were several price changes after I posted that first one. At least part of the difference is that when a new drug is introduced, one way that CMED prices it is with reference to the prices set in a defined list of countries OR the home country of production, whichever is lower. Since MNKD is only sold in the US and Brazil, under that regime the US price was the benchmark and a few pricing spreadsheets reflected that reality. The pricing sheet for February had the higher prices I mention above, the one for March has the lower prices. Why the change? I think the higher prices in January and February were from one pricing methodology, and the prices for March are from the other. The pricing regime on the latest sheet is marked "Regulado" or regulated while at least one of the earlier sheets said "Liberado" or free pricing. It doesn't help that CMED issued several versions of the price sheet in December, not all of which even listed Afrezza. However, I think the new March prices are more in line with what the official policy is in Brazil so I would expect those prices will apply during the March 2020 to February 2021 period. |
|
|
|
Post by celo on Mar 3, 2020 9:17:28 GMT -5
The question is, if I flew to Rio, filled a prescription for 2 years of Afrezza under the idea that it doesn't expire, how much money would I save? A ton
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Mar 3, 2020 9:32:18 GMT -5
Good find Matt. Interesting that MC emphasized Brazil as a cash market where it would be sold to an affluent upper class and not part of the government formulary. Interesting to see how this reconciled over time. He did say part of the next shipment will ship in Q1 (later this month?), and the majority in Q2. Hopefully we will get a dollar amount associated with each shipment, close to the time of shipment, rather than waiting until the next earnings call. You have to wonder.....Is MNKD using their stash of insulin that has been in storage for the Brazil market? This could have changed over the years but MNKD purchased a lot of insulin years ago from Pfizer and as of a couple of years ago it's been in storage and gets inspected regularly for viability. I was at the ASM and the question was raised. I remember Al Mann saying they have over $10 Billion dollars worth of Insulin in storage with a ZERO COST. I wonder if they still have it and if they are using it for Brazil? |
|
|
|
Post by agedhippie on Mar 3, 2020 10:56:48 GMT -5
You have to wonder.....Is MNKD using their stash of insulin that has been in storage for the Brazil market? ... It's a different API so the FDA would need to approve that. There is not a lot of point anyway because they are currently not using all the insulin they are buying from Amphastar. They are a lot more likely to burn down the Amphastar backlog for Brazil because it's already paid for and is the correct API. |
|
|
|
Post by rfogel on Mar 3, 2020 12:49:52 GMT -5
You have to wonder.....Is MNKD using their stash of insulin that has been in storage for the Brazil market? ... It's a different API so the FDA would need to approve that. There is not a lot of point anyway because they are currently not using all the insulin they are buying from Amphastar. They are a lot more likely to burn down the Amphastar backlog for Brazil because it's already paid for and is the correct API. What is the status pf that Pfizer insulin? Does Mannkind really have 10 billion dollars worth of insulin locked away in a freezer somewhere? |
|
|
|
Post by mango on Mar 3, 2020 13:31:40 GMT -5
It's a different API so the FDA would need to approve that. There is not a lot of point anyway because they are currently not using all the insulin they are buying from Amphastar. They are a lot more likely to burn down the Amphastar backlog for Brazil because it's already paid for and is the correct API. What is the status pf that Pfizer insulin? Does Mannkind really have 10 billion dollars worth of insulin locked away in a freezer somewhere? They do have a surplus bulk insulin, and have sold differing amounts of it from time to time. For example, "Total revenue for the first quarter of 2018 was $3.4 million compared to $3.0 million for the first quarter of 2017, an increase of $0.4 million or 15%. This increase was primarily due to the increased net revenue from Afrezza, partially offset by the sale of bulk insulin of $1.7 million in the first quarter of 2017." investors.mannkindcorp.com/news-releases/news-release-details/mannkind-corporation-reports-2018-first-quarter-financialIf you would like to learn more about MannKind's bulk insulin, then email MannKind IR. |
|
Until the scripts start to rise.
