KK2 - Aside from the answers that BDAZ has posted, the NNT of any drug is a great place to start on a pricing model before marketing begins. In your example of an NNT of 100, this equals 1 event saved per 100 patients taking that drug for say 1 year. If the average cost of 1 event would be $120,000 then the potential value of that drug is $1,200 per yer or $100 dollars per month per patient. For a pharma company to find out if they are going to make a reasonable return after R&D, manufacturing, marketing and distribution costs an estimated NNT is a good starting point after successful completion of a phase one trial. The example I used is very basic and many variations may be used in an actual process. The information garnered is necessary for both the pharma companies and the payors(the insurance companies). In ABL's case, for example only, if we had an NNT of 20 and a cost of an event at $100,000 then the potential price point for 1 years worth of medication would be $5,000 or just over $400 per month.

In the example I used a couple of days ago for valuation the of RVX I did use a $5,000 per year cost of ABL to come up with a potential market cap of $24 billion. There are many variables that go into any analysis so don't get stuck on that one potential valuation. It's one of many in a matrix.

All IMO, dyodd.

tada