munchtrade wrote: Zookie wrote: Any thoughts on the $/mg that SPR could charge for formulated Infuz2O? Figured this might be a good place to start with trying to model value.
Happy Monday, gang.
While we wait for the market drama to unfold, I did some highly scientific napkin math. LOL
If we use the example of Canopy's Houndstooth Soda, we can work backwards and make some wild assumptions on what an mg of APP could be sold for.
Depending on what industry you're in, gross margin can vary wildly, but as an aspirational target for this example, let's say we aim for 50% GM. H&S is selling retail for $4, which contains 2mg of THC. OCS (or other provinces) take a 50% haircut off that price, so Canopy sells for $2. Use the 50% GM assumption again, and it costs them $1 to make a single can.
Add in the other ingredients, the packaging, costs of good sold, etc that make up that $1. This is where assumptions reallly go off the rails - I'm going to guess 10 cents per mg. I think that's a conservative number and hope they could fetch more.
Using 10 cents, and basing SPR's previous report that they had 33M 10mg doses, that would translate to $33M in revenue. We know that they probably have more capacity than that since they expanded their facilities last year.