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Assume the Mayo Clinic has developed a new drug for the treatment of a disease. The development cost $23,000,000 initially plus it will cost them
Assume the Mayo Clinic has developed a new drug for the treatment of a disease. The development cost $23,000,000 initially plus it will cost them $900,000 per year for ongoing operations and $27.50 per vial to produce. The Mayo Clinic has 15 years left on their patent and their required rate of return is 10%. How much do they need to charge to breakeven per dose assuming 85,000 patients get 12 doses per year
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