Vaxxas will use the traditional profit model to assure they capture the full economic value of the Nanopatch. In the traditional model, the customer buys the product and the seller makes a profit from that sale. Specifically, Vaxxas will sell the Nanopatch to healthcare providers such as hospitals, pharmacies, doctors’ offices, etc. and make a profit from that sale. The traditional model is most suited for Vaxxas because healthcare providers value the product, can’t attain this value elsewhere, and the Nanopatch will be priced similarly to competitors. Healthcare providers value this product as many of their customers will buy it. As the Nanopatch gains popularity, it could spur the healthcare providers sale’s and add value to the business.
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Therefore, these results do not necessarily represent the financial predictions for Vaxxas and the Nanopatch accurately. Based on the model, the net present value (NPV) for Vaxxas is -$210,196,731. While a NPV of negative $210 million sound alarming, the main reason for such a large negative is FDA approval costs. Aside from the fact that the model is not perfect for Vaxxas, even half of this NPV is concerning for Vaxxas’ market future. Likewise, as seen in Figure 19 and Figure , because Vaxxas is expected to be in hundreds of millions of dollars in debt ten years after market, there is no calculatable payback period within ten years post market.
A large amount of investor funding and an increase in sales from the estimate may play a factor in raising that number to a more positive value and allow Vaxxas to be more profitable. However, at the rate shown in Figure 19, it will take well over ten years before they stop losing money, and much longer before they begin to make a profit. One way to combat the massive loss is to sell at a higher rate than the model predicts as shown in Figure
Therefore, these results do not necessarily represent the financial predictions for Vaxxas and the Nanopatch accurately. Based on the model, the net present value (NPV) for Vaxxas is -$210,196,731. While a NPV of negative $210 million sound alarming, the main reason for such a large negative is FDA approval costs. Aside from the fact that the model is not perfect for Vaxxas, even half of this NPV is concerning for Vaxxas’ market future. Likewise, as seen in Figure 19 and Figure , because Vaxxas is expected to be in hundreds of millions of dollars in debt ten years after market, there is no calculatable payback period within ten years post market.
A large amount of investor funding and an increase in sales from the estimate may play a factor in raising that number to a more positive value and allow Vaxxas to be more profitable. However, at the rate shown in Figure 19, it will take well over ten years before they stop losing money, and much longer before they begin to make a profit. One way to combat the massive loss is to sell at a higher rate than the model predicts as shown in Figure