Tesaro (TSRO) is using some funky math and PR razzle dazzle to make the price of its newly approved PARP inhibitor Zejula look cheaper than it really is for treating ovarian cancer.

In a statement Wednesday tied to the drug's commercial launch, Tesaro said a one-month supply of Zejula will cost $9,833 at a dose of 200 mg once per day.

That last bit is the razzle dazzle because FDA approved Zejula at a dose of 300 mg once per day.

Let's pull out the calculator... That means at the FDA-approved dose, Zejula will cost 50% more per month or $14,750. A year's supply of Zejula at the FDA approved dose will cost $177,000.

Clovis Oncology's (CLVS) PARP inhibitor Rubraca costs $13,750 per month.

"We specified the 200 mg dose because that was the most commonly administered dose in the NOVA trial," said a Tesaro spokesperson, when asked to explain the dose/price discrepancy.

It also makes the drug look cheaper than its competitor when it's actually more expensive.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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