Hi SCHMID6SIG.

I’ll try to explain it with two exapmles, one for a drug and another for an ingredient.

The explanation is extense, but it’s been carefuly detailed. Don’t get overwhelmed and proceed calmly. Be sure to understand what’s going on before going any further.

Let’s start with an ingredient example.

Basic cost: 50

Basic demand: 100%

Oversaturation: 0%

Net demand: 100%

Saturation: 60%

Bought last month: 45

Upgrades: 0

Actual cost: 50

Net demand depends on 2 variables: Oversaturation and Basic demand.

Basic demand is an independant variable which changes along the time, and represents demand of non-pharmaceutical business for that ingredient, so this value has nothing to do with your competitors or your activity.

Oversaturation is a dependant variable. When saturation rises over 100%, this variable will begin to rise, increasing the cost of the ingredent. At the same time, saturation depends on the ingredents bought last month, by you or your competitors.

Let’s suppose 3 months has passed by, and the variables now are the following ones:

Basic cost: 50

Basic demand: 110%

Oversaturation: 0%

Net demand: 110%

Saturation: 60%

Bought last month: 45

Upgrades: 0

Actual cost: 55

Net demand has increased because non-pharmaceutical business are buying more of it. Becouse of that, the actual cost has increased.

Now, we will supose tah in that same time, you built 2 more productive lines at full activity.

Basic cost: 50

Basic demand: 110%

Saturation: 140%

Oversaturation: 10%

Net demand: 120%

Bought last month: 105

Upgrades: 0

Actual cost: 60

¿What happened this time? More ingredients are being bought, so saturation has increased. Since saturation is above 100%, net demand is increased due to oversaturation.

Right now, this ingredient is very expensive, and you buy a lot of it, so let’s improve it.

Basic cost: 50

Basic demand: 110%

Saturation: 140%

Oversaturation: 10%

Net demand: 120%

Bought last month: 105

Upgrades: 2

Market price: 60

Actual cost: 48

Now, that’s better. This time I specified the “Market cost” so it’s clearer to see how the upgrades affects the cost.

So, let’s recap.

Basic demand varies over the time, and saturation depends on how much ingredients are bought. Plus, when saturation goes above 100%, net demand increases due to oversaturation. This will mark the market price of the ingredient. Then, when we upgrade an ingredient, a discount is applied over the market price.

Now, is time for the drug example.

Healing effect base value: 100

Basic demand: 100%

Cures sold: 30

Saturation: 40%

Oversaturation: 0%

Net demand: 100%

Healing effect value: 100

Combined value (pills): 120

Cure rate: C

Selling price: 120

Basic demand on drugs are more tricky. It depens in how many people is suffering the illness we are treating. Some of them increases based on how many people is infected and decreases based on how many people is cured, some others varies depending on the time of the year, and some others do not vary at all. For the example, we will supouse that the basic demand does not vary.

Saturation and oversaturation follows the same basics than before, but regarding cures sold.

Let’s supouse we build two more productive lines at full activity.

Healing effect base value: 100

Basic demand: 100%

Cures sold: 90

Saturation: 120%

Oversaturation: -5%

Net demand: 95%

Healing effect value: 95

Combined value (pills): 115

Cure rate: C

Selling price: 115

We oversaturated the market selling more drugs than demanded, so it will cause the net demand to decrease.

Now let’s supouse we improve our line producton, increasing the cure rate.

Healing effect base value: 100

Basic demand: 100%

Cures sold: 90

Saturation: 120%

Oversaturation: -5%

Net demand: 95%

Healing effect value: 95

Combined value (pills): 115

Cure rate: A (+20%)

Selling price: 138

So, let’s recap.

Basic demand varies or not depending on the type of illnes, so keep a look over the affected people. Saturation depends on how much cures are sold . Plus, when saturation goes above 100%, net demand decreases due to oversaturation. This will mark the price of the cure. Then, depending on the cure rate, an increase or a decrease will be applied over the combined value.

Now, an extra lesson. Let’s supouse a medicine with 2 cures:

Cure 1

Healing effect base value: 100

Basic demand: 72%

Cures sold: 90

Saturation: 108%

Oversaturation: -2%

Net demand: 70%

Healing effect value: 70

Combined value (pills): 90

Cure rate: A (+20%)

Selling price: 108

Cure 2

Healing effect base value: 400

Basic demand: 140%

Cures sold: 45

Saturation: 68%

Oversaturation: 0%

Net demand: 140%

Healing effect value: 540

Combined value (pills): 560

Cure rate: A (+20%)

Selling price: 672

Drug

Cure 1 value: 70

Cure 2 value: 540

Combined value (pills): 630

Cure rate: A (+20%)

Selling price: 756

When separate: 780

Let’s perform a change on the basic demand of each cure…

Cure 1

Healing effect base value: 100

Basic demand: 107%

Cures sold: 90

Saturation: 108%

Oversaturation: -2%

Net demand: 105%

Healing effect value: 105

Combined value (pills): 125

Cure rate: A (+20%)

Selling price: 150

Cure 2

Healing effect base value: 400

Basic demand: 120%

Cures sold: 45

Saturation: 68%

Oversaturation: 0%

Net demand: 120%

Healing effect value: 480

Combined value (pills): 500

Cure rate: A (+20%)

Selling price: 600

Drug with both cures

Cure 1 value: 105

Cure 2 value: 480

Combined value (pills): 605

Cure rate: A (+20%)

Selling price: 726

When separate: 750

So, conclusions on this last experiment: combining cures on a same drug may increase their combined value, but that doesn’t means that we will earn more profit.

However, let’s check this other combination

Cure 1

Healing effect base value: 100

Basic demand: 107%

Cures sold: 90

Saturation: 108%

Oversaturation: -2%

Net demand: 105%

Healing effect value: 105

Combined value (pills): 125

Cure rate: A (+20%)

Selling price: 150

Cure 2

Healing effect base value: 400

Basic demand: 120%

Cures sold: 45

Saturation: 68%

Oversaturation: 0%

Net demand: 120%

Healing effect value: 480

Combined value (pills): 500

Cure rate: C

Selling price: 500

Drug with both cures

Cure 1 value: 105

Cure 2 value: 480

Combined value (pills): 605

Cure rate: B+ (+15%)

Selling price: 707’25

When separate: 650

When combining a C high value cure with an A low value cure, we get more profit than selling them separetly because of the increment on the average cure rate of the drug. Interesting, isn’t it?

Well, I hope your doubts have been solved.

If you have any other question or need any further aclaration, don’t hesitate to ask.