Did I mention the price

Let’s be honest, we are all trying to make a living.

But does the list price of the average disposable assembly cause you concern? Does $200 for a 50l plastic bag sound expensive? The biopharmaceutical industry is an exciting environment as it is rarely consumable costs that are a go or no go criteria. Or as written up in a more scholarly article by Mike Hoare, Nigel Titchener-Hooker et al :

"…..the capital investment required for a disposables-based option is substantially reduced at less than 60% of that for a conventional option. The disposables-based running costs were evaluated as being 70% higher than those of the conventional equivalent. Despite this higher value, the net present value (NPV) of the disposables-based plant is positive and within 25% of that for the conventional plant."

Although 25% is significant for many manufacturing industries, it is generally less significant for this industries where uncertainties and time to market are the primary drivers.

So the question remains unanswered - "What is a fair price?" I am really curious as to what others feel and think about this. I don’t expect that any bag or other disposable supplier will be about to suggest how they got to their number or disclose their market analysis on price sensitivity.

10 October 2006 | Uncategorized | Comments