The cost of one dose of IV Tylenol is set to increase to $33. This is up from $12 per dose when cadence pharm brought it to market. Because of this increase price my hospital is removing it from the hospital formulary and it will no longer be available. They projected this drug alone would cost the hospital $600,000. I think this will be repeated at many hospitals across the US. This make the purchase price for cadence pharm way to high at 1.4 billion. Stock price should decrease
from a doctor friend: "the drug the hospital is recommending instead of ofirmiv is toradol which is very cheap, but I never allow in my patients due to risk of bleeding and kidney injury "
Sales will not plummet however they will show erosion in market share. Caldolor may show as much as 15% of market share, where previously they were at 5%. At $10.50 a vial, it shows it will be a viable alternative to Ofirmev in certain situations.
We have taken Ofirmev off formulary at our hospital. With the price increase we were anticipating spending $300,000 in our hospital in 2015. Not gonna happen. We will have to wait and see if this backfires on MNK. I know a lot of hospitals are restricting it in their hospital. We will see the outcome.
scare tactics like this may work on small cap co's w/ stupid shareholders, but it doesn't work on "real" companies that know what they're doing.
good luck w/ your short attempts...MNK buyers continue to add on dips, and after Q2 and QCOR and the estimates get raised, AGAIN, i wouldn't be surprised to see this stock at $100+.
Note the $80-100 rule. EVERY STOCK that hits $80, ALWAYS will hit $100+...just a matter of timing (go ahead and check). This will happen with QCOR also.
Btw, I think there's a good chance MNK stock begins moving up even BEFORE earnings, and in anticipation, imho.
Companies "usually" test the waters before they adjust a price like this. Would be dumb to increase a price only to decrease revenue and profits. Doesn't make sense. I'm sure some may reduce or eliminate, but marketing apparently thinks enough will keep and pay more to make the adjustment profitable. Just curious what background you have or why your hospital alone determines overall market reaction?
Sentiment: Strong Buy