Jawad Sethi’s Post

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Endocrinologist and Lipidologist at Arizona Community Physicians

This TDAPA approval is a big deal. When a new drug gets FDA approval, it takes a lot of time and effort to get providers to use it. But here it’s totally different ball game. Starting 1st of July CMS will pay 249.99 USD per vial of Defencath. A dialysis session needs 2 vials and so, 500 USD per session of dialysis. Patients get dialysis 3 times a week and so, 288 vials per patient per year/ 72000 USD per patient per year. The dialysis provider such as DaVita etc. will get part of this payment and CorMedix will get the rest. Let’s say the dialysis provider gets 150 USD per vial and CorMedix gets 100 USD per vial. That’s big money for the dialysis providers and so the major dialysis providers are eagerly waiting for July 1st to start using Defencath. The company estimates 37 to 46 million vials just in the outpatient setting per year. That’s like up to 4 billion USD per year revenue just from outpatient. Inpatient will be additional. Looking at 4 billion USD revenue in 2025. That means a share price of about 75 USD per share. Counting inpatient revenue: 100 USD per share. Guaranteed full CMS reimbursement for first 2 years and then 65% of ASP for 3 years and after that dialysis bundle. Easy 2000% gain in 12 months!

This favorable decision by CMS ensures that we will meet our expected launch timing in July for outpatient distribution. I am excited to bring this innovative drug product to kidney patients undergoing hemodialysis through a CVC to reduce their risk of contracting deadly catheter related blood stream infections. https://lnkd.in/eJT9fYSF

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