For a single dose of a treatment a company has these costs:

$100 of raw materials, $25 shipping, $25 proper storage containers. The company has invested $300 million in R&D.

4 doses of treatments are required per year per patient. On average, the company requires margins of 50% for their treatment.

1) What is the lowest price point the company will accept per patient for a complete year of treatment? What approach you are using?

2) What is the highest price you could charge (i.e. price ceiling) per patient for the treatment duration of one year? What approach you are using?