PLX will charge $150k per year until they can ramp up manufacturing to cover 100%. Once they can produce for 100%, the drop prices to capture 100%. Then maximum number of patients ELELYSO can treat with ramped up production = 5500 patients X 100% = 5500 patients.
INCENTIVES FOR SWITCHING
PLX offers patients $5,000 per year rebate to pay their medical premiums for using ELELYSO. They get insurance companies to offer doctors $10,000 rebates for prescribing the cheaper "generic".
PLX only charges $100k net price for treatment ($105k before rebate). Insurance companies pay total $115k ($105k for drug $10k rebates to doctors) minus co-pays, etc. Net savings to insurance company is $85K per year.
PLX captures 100% of market because Cerezyme can't compete.
PLX MARKET VALUE
The maximum worldwide sales possible for ELELYSO is 5500 patients X $100K = $550,000,000. PLX's share of revenue is 40% = $220,000,000. EBIDTA = $220M X 0.90 X 0.97 = $192M