Ryoncil adopts "spot type" cryopreservation technology, with a recommended dose of 2 × 10 ⁶ MSC/kg, administered twice a week (a total of 8 times). The single infusion is priced at 194000 US dollars (with a total cost of approximately 1.55 million US dollars).

Many people naturally compare the price of mesenchymal stem cell drugs with that of CAR-T drugs. After all, a single dose of CAR-T in the United States costs over 400000 US dollars, making mesenchymal stem cells cheap. However, if calculated based on the course of treatment, Ryoncil would cost 10 million RMB, which is simply astonishing!

We also acknowledge that Ryoncil has a nearly 30-year research and development cycle, with a cumulative investment of over 1 billion US dollars. The company wants to recover its costs as soon as possible.

In addition, the research and development company Mesoblast was rejected by the FDA twice in 2020 and 2023, during which it invested tens of millions of dollars to improve potency testing data.

We believe that the more crucial point is that Ryoncil, as the first approved MSC therapy in the United States, has a 7-year market exclusivity period and no competitive threat in the short term, giving it an absolute advantage in pricing. Meanwhile, Mesoblast's ambition is to develop this therapy for indications in more patient populations such as adult GVHD, inflammatory bowel disease, heart failure, etc. Perhaps some diseases will only require 1-2 doses at that time? If the price is set low from the beginning, it will be difficult to handle then!

From an economic model perspective, the company believes that medical expenses for untreated patients can reach up to $2.5 million (including ICU and complication costs), while using Ryoncil treatment for a total of $1.55 million can save 45% of overall costs. Under the system of free pricing power, pharmaceutical companies can independently set prices based on "value orientation". Ryoncil, based on the Quality Adjusted Life Year (QALY) model, takes into account the survival value of pediatric patients for the next 40 years in pricing considerations.

We know that healthcare expenditure in the United States accounts for 10.71% of GDP, and commercial insurance coverage reaches 91%, which provides a payment basis for high priced drugs.

Therefore, we don't need to worry about whether Americans can afford this medicine. Instead, we should be grateful that students are born in China. Compared with similar drugs in China, such as Platinum Health Excellence Amy Metosay, it is estimated that the price will be 100000 to 200000 yuan/time, thanks to China's lower R&D expenses and labor costs.

Source: https://pharm.jgvogel.cn/c1491311.shtml