I spoke to Matt on Wednesday about the Insulin cost
Aug 22, 2014 19:27:36 GMT -5
liane and mannmade like this
Post by obamayoumama on Aug 22, 2014 19:27:36 GMT -5
I spoke to Matt about how they were going to calculate the cost of their product. He said that they would be able to add in the cost of the Plant and equipment but not the development cost of the drug. He also reminded me that all of the insulin that they acquired from our First supplier, and if you recall they were buying a lot before they cancelled that contract, has been expensed, but that they would be adding that insulin into their cost. It seems that Sanofi required MNKD to sign a new insulin agreement, before Sanofi would sign the joint Venture. Sanofi wanted to make sure they would have enough insulin to start. It seems that their new insulin contract should produce about $4 billion of product, plus whatever insulin is from the first contract. It seems the PFE insulin, may or may not be used. MNKD/SNY would have to get approval to use the PFE insulin and he said that no one has ever submitted a request to used 7 year old insulin that has been frozen before. It sounded like that wasn't a strong possibility. I also asked about the European approval status and they aren't the lead on that and the timing is up to Sanofi. The structure of the deal seems fair, equal to about a mid 20% royalty or about a 50% profit share. When you add up the upfront and the milestones and the profit sharing you get to those numbers. He also said that SNY would be able over the years to bring down the supply chain costs.
I asked about what the plans for a launch was, and he said that Mnkd's executives know, and are excited, but couldn't mention timing or anything.
When you step back and look at the deal, I think both parties got a fair deal.
I asked about what the plans for a launch was, and he said that Mnkd's executives know, and are excited, but couldn't mention timing or anything.
When you step back and look at the deal, I think both parties got a fair deal.
