A couple of years ago, MNKD bought up a mountain of insulin and it's all sitting in freezers.
It's been expensed out, already. No acquisition cost of ingredients.
That first big shipment that moves out of the loading docks and into all of the pharmacies...will be cheap.
Only expense will be the packaging and shipping.
That's a BIG advantage and will soften the impact of that first initial shipment.
"Only expense will be the packaging and shipping."
The only cost saving will be the raw material cost of insulin. All other cost are quite real including the cost of technosphiring the raw insulin, depreciation, manufacturing and other fixed and variable costs.
Total cost would only be reduced by the amount of insulin not paid for and how large a percentage that makes to the total cost figure.
I hope that helps.