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Biotech / Medical : LIPO-Liposome -- Ignore unavailable to you. Want to Upgrade?

To: Ed who wrote (712)	7/13/1999 1:47:00 PM
From: Cheeseburger	Respond to of 900

IF APPROVED, Evacet will have a label for 1st line treatment for MBC. (as compared to 2nd line for Abelcet). I believe that Lipo has proved and could get a label claim for REDUCED CARDIOTOXICITY, REDUCED STOMATITIS/MUCOSITIS, REDUCED NAUSEA/VOMITING, REDUCED FEVER/CHILLS, and REDUCED EXTRAVASATION INJURY ALL WITH EQUIVALENT EFFICACY compared to plain doxorubicin. That compares to reduced renal toxicity for Abelcet (the one and only label advantage of Abelcet over plain amphotericin B). It is estimated that the worldwide market for plain doxorubicin is approx. $350-$450 million/year, of which approx. 60%+ is for treatment of MBC (including adjuvant therapy). That compares to a worldwide market of approx. 20 million for plain amphotericin B. The daily INCREMENTAL cost for Abelcet (and the other Lipid based amphotericin products) range from 30X-50X. That compares to MY estimated $8-10/mg or 2-3X (for AVE. wholesale branded Adiamycin(doxorubicn))or approx. 8-10X the generic price of unbranded doxorubicin. Now at $10/mg for Evacet and assuming an ave. of 300mg/m2 /treatment yields a price of approx. $6,000/treatment. This compares very favorably to the other propietary products for the treatment of MBC. Taxol, Taxotere, and Herceptin cost approx. $10,000 - $12,000/ treatment and Doxil would run upwards of $15,000/treatment based on pricing of $30/mg. Now for another disclaimer......... I have no experience in pharmaceutical manufacturing. That being said, it would seem to me that the gross margins on Evacet should be very high. WHY? 1. It would seem to be a fairly inexpensive product to manufacture. Evacet is composed of 3 vials. One contains doxorubicin (we already know that is inexpensive). The second vial contain a plain buffer at a ph of 4 (again inexpensive). The third and last vial is composed of plain, empty liposomes. Throw in some packaging and you have Evacet. 2. The fixed manufacturing costs of Evacet are ALREADY COVERED by Abelcet. Thus, I believe that the gross margins on Evacet could approach 90%. But let's assume 80% as gross margins for now.