Mr. Beer would tell shareholders that HoF was an ULTRA ORPHAN disease at first. Because he was from Genzyme he knew how to price the drug right and to expect it would be in the neighbor of 250K to 400K. Most people's definition of orphan drug status is less than 5000 patients world wide. Now Mr. Beer has said before the FDA gagging that there may be as many as 15K patients worldwide.
But the biggest trick of all was to hold back on his full pricing for a short period of time. He then makes an announcement of a price increase DUE TO INCREASED demand. What do we have here? The latest Apple iPad going on sale just three days before X-mas? No we have a small molecule drug that can be easily made in bulk for an extremely small population. All the while Mr. Beer is almost getting tears in his eyes while discussing the rough plight of these HoF patients. His famous words are that these people have a lethal level of lipids running through their arteries and they don't know plight potentially befalls them. He then says that the company motto is "the patient is waiting.". Let's see what the patient is waiting for? They are waiting for price increase that was per-planned as a way to show artificially noted increased demand in an"ultra-orphan" disease with a simple small molecule to manufacture ........and they have to raise the price based on increased demand when before the public had been reassured that there would be plenty of medicine available. And why not? It is a small molecule, can be easily manufactured and he uses these people with a business ploy to raise the price because of increased demand when the margins are already over 80%. Great guy Mr. Beer, excuse me the patient is waiting. t
It doesn't follow the real cause of a price increases n normal economics where you want to cool demand because demand out strips supply, or your costs for whatever reason have gone up and margins have notably thinned. None of that occurred here IMO. t