Originally Posted by
NewGuy
This is a classic case of "the product's great, but we don;t have the right distribution channels to sell it." The sooner that PEB accept and/or fix this, the better.
I've actually been the MD of a company trying to introduce a new disruptive medical technology. I've seen how hard it is to sway the medical profession. PEB have a big fight ahead unless they can get access to an established distribution channel.
DD also mentioned that the test was VERY expensive in the states, but that their COGS were very low. He said that he couldn't mention exact numbers due to commercial sensitivity, but I understand that their GP% is about 80%. He also discussed the issues around co-pay, and how this was variable that each supplier could set. It was at this point that I realised they could be pricing this whole thing incorrectly. Pricing strategy will be absolutely critical, and is not usually the domain of geneticists.
Also, the list of DD's other commitments was pretty worrying. How they hell can he devote proper attention to PEB with so many other things to do. I was shocked.