Stock Update (NASDAQ:KBIOQ): KaloBios Pharmaceuticals Inc Announces New Product Pricing Model
KaloBios Pharmaceuticals Inc (OTC:KBIOQ) announced the adoption of a new pricing model that will guide the company’s strategy and operations. This framework applies to all products in the company’s current and future pipeline, including benznidazole in the potential treatment of Chagas disease.
“Our new pricing model is a commitment to define and develop transparent, responsible pricing for the products we hope to bring to patients in the future,” said Cameron Durrant, MD, MBA, KaloBios’ Chairman and Chief Executive Officer. “Drug pricing is a big concern for all stakeholders in healthcare. We believe that our approach balances the needs of key stakeholders, including patients, clinicians, payers, NGOs, investors, policy makers and advocacy groups.”
KaloBios’ Responsible Pricing Model:
- Responsible Pricing = affordable for patients and payers, transparent for stakeholders and delivers a reasonable returnfor the company taking the risk of bringing products to patients.
- We plan to price our products at overall cost, plus a reasonable and transparent profit margin, if and when we commercialize them.
- In the case of benznidazole, for instance, the price will be cost plus a modest profit margin. We are not conducting original research on benznidazole and therefore do not plan to incorporate an “R&D premium” into the price.
- We will publicly share the key elements that make up the pricing of our products.
- We will seek input from key stakeholders on what would constitute a reasonable return.
- We will not take arbitrary price increases on our products and will limit any increase to no more than the rate of inflation or Consumer Price Index and to no more than once a year, if at all.
- We will not engage in aggressive or predatory pricing policies or “price-gouging.”
- We plan to ensure patients, irrespective of their ability to pay, will have access to benznidazole, if and when KaloBios commercializes the product for Chagas disease in the United States.
- In developing countries, we plan to make benznidazole available at, or near cost and plan to work with partners on creating access programs to ensure patients in need receive the medication.
KaloBios anticipates sharing additional information related to how it will implement this model over the coming months and years. (Original Source)
Shares of KaloBios closed last Friday at $5.60, down $0.70 or -11.11%. KBIOQ has a 1-year high of $45.82 and a 1-year low of $0.44. The stock’s 50-day moving average is $4.33 and its 200-day moving average is $7.01.
KaloBios Pharmaceuticals, Inc. is a biopharmaceutical company, which focuses on the development of monoclonal antibody therapeutics. It develops a portfolio of proprietary and patient-targeted monoclonal antibodies designed to treat severe life-threatening or debilitating diseases for which there is an unmet medical need, with a clinical focus on severe respiratory diseases and cancer. The company’s antibody technology, Humaneered, treats serious medical conditions with a primary clinical focus on respiratory diseases and cancer. KaloBios Pharmaceuticals was founded on March 15, 2000 and is headquartered in South San Francisco, CA.