Limb Lengthening Forum
Community Hangout => Off Topic => Topic started by: Johnson1111 on May 23, 2018, 11:57:59 PM
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What do you think is the estimated profit margin for the price they sell the precise nails is?
So it costs what, like 5 dollars to make? They sell it for about $40,000+ in certain cases?
Seems like a good gig.
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Keep in mind they very likely spent millions of dollars developing and getting the thing approved by the FDA, and it's not like there's that many people who will use it.
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Keep in mind they very likely spent millions of dollars developing and getting the thing approved by the FDA, and it's not like there's that many people who will use it.
I agree with the first part but not the second
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Nails themselves are $15k each for 2.2. It's mainly made for deformity correction, and since NuVasive is based in the US, I'm sure they expect insurance to cover bulk of the cost (which is why it's so expensive for CLL).
They're a publicly traded company, so there's a lot of overhead as well. They need to generate profits not just for themselves (engineers, office staff, R&D, corporate real estate, etc.) but to also pay back their investors. Being in the industry they're in, I'm sure they have great lawyers as well.
Sure, the raw materials aren't too expensive, but the same can be said for any product. Every release of the iPhone is shortly followed with "this is how much the phone actually costs" articles. But alas, we're not just buying parts, but a finished product.
I'd estimate their gross profit margin on the Precice nail to be around 20-30%.
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It's supply and demand. They aren't putting a gun to patient's heads and forcing them to buy anything.