On March 19, 2013, in connection with its supply of MelaFind units, MELA Sciences, Inc. (the “Company”) issued a purchase order for approximately $3 million pursuant to its Production Agreement, dated January 6, 2012, with Askion GmbH.
Depending on what their manufacturing cost is these days that sounds like at least 80 units and possibly as many as 100. They seem to be doing fairly well on placements. Now let's hope their new focus on boosting utilization bears some fruit in the fairly near future.
Lets assume each MelaFind unit costs $30k to manufacture and that the 100 unit order is correct.
My understanding is that each machine is sold to a Dermatologist for $10k and then each scan generates $50 in revenue for Mela. So, with those assumptions, break even for a Mela device occurs at 400 patient scans. This does not account for other corporate expenses, just production of the system. If the Dermatologist scans one patient per working day, then it will take roughly 1.5 years for Mela to break even on a given machine. What is the typical demand for MelaFind units currently in service? Can anyone answer this?