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6 Molybdenum-99/Technetium-99m Production Costs
Pages 80-89

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From page 80...
... This cost information is used in Chapter 10 to address the fourth charge of the study task (Sidebar 1.2) , which calls for an assessment of the "potential cost differential in medical isotope production in the reactors and target processing facilities if the products were derived from production systems that do not involve fuels and targets with HEU." The study charge does not specify the point in the medical isotope supply chain (Figure 3.5)
From page 81...
... The committee judged that its report would be most useful to all of these audiences and purposes if it provided cost estimates at several points in the supply chain. The committee concluded that it could develop reasonably accurate cost estimates at the following three points in the supply chain: 1.
From page 82...
... The cost of producing a Tc-99m generator includes the gross cost of the Mo-99 (i.e., the price paid by the technetium generator producer for the Mo-99 plus any delivery charges) plus the fixed and variable costs associated with producing the generator.
From page 83...
... Tc-99m generator producers publish list prices for Tc-99m generators, but the committee was told by several companies that nobody pays list prices. Costs are negotiated with each purchaser and are affected by market mechanisms.
From page 84...
... The committee attempted where possible to develop multiple cost estimates at each point in the supply chain, both to improve its confidence in the estimates and also to understand cost variability. However, in some specific cases it was difficult for the committee to differentiate between "costs" and "prices" based on available information.
From page 85...
... However, the calibration is not based on 6-day curies, but rather on the number of curies that are contained in the generator on the day of or day after its delivery to the radiopharmacy, hospital, or clinic. The committee will refer to this calibrated quantity as technetium generator curies.  No producers provided cost estimates to the committee or were asked to confirm such estimates.
From page 86...
... Technetium generator manufacturers publish list prices that can be used as a first step in estimating costs. The 2008 price list for a technetium generator sold by the Australian company ANSTO Radiopharmaceuticals and Industrials (ARI)
From page 87...
... In contrast to the United States, Australian and Pacific markets place different social values on health care and have different structures for pricing and reimbursing medical treatments. The committee obtained a proprietary generator list price for another technetium generator producer that supplies the U.S.
From page 88...
... The price variations reflect different bundles for different numbers of generator purchases. The cost variation for technetium generators sold to Fraser Health is about 12 percent for the 7.5 Ci generator and 10 percent for the 10 Ci generator.
From page 89...
... The committee did not obtain enough data to develop quantitative distributions of technetium dose costs. DISCUSSION AND FINDINGS The committee estimates the following costs/prices for medical isotopes at three points in the Mo-99/Tc-99m supply chain.


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