CEO Defends 5,000% Drug Price Hike

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drug medicineA drug commonly used to treat life-threatening parasitic infections has jumped in price to $750 per tablet, from $13.50, after being acquired by a pharmaceutical startup run by a former hedge-fund manager.

The 62-year-old drug, Daraprim, was acquired by Turing Pharmaceuticals this year.

Turing’s CEO Martin Shkreli defended the price increase in an interview with Bloomberg Monday.

“At the end of the day, the price per course of treatment — to save your life — was only $1,000,” Shkreli said. Daraprim is still underpriced relative to its peers.” He also explained that the company simply needed to make a profit on the drug.

Biotech stocks plummeted Monday after Hillary Clinton announced that she would release a plan to combat high prescription-drug costs in response to the Turing incident. Read more at The New York Times.

[CB Frommer-Matzav.com]

5 COMMENTS

  1. Another example of patent law abuse. There is no inherent intellectual property right – it was made up in order to promote reimburse research and development by letting the high costs be offset by higher profit. If you disagree that intellectual property rights are not inherent, pay up your royalties forOver the period of sixty years all costs should have been recovered in addition to lots of healthy profit. In this case,

  2. Another example of patent law abuse. There is no inherent intellectual property right – it was made up in order to promote research and development by letting the high costs be offset by higher profit. If you disagree that intellectual property rights are not inherent, pay up royalties for using wheel and fire. Over the period of sixty years all costs should have been recovered in addition to lots of healthy profit. In this case, the patent law is assisting overpaying investor’s cost recovery.

  3. Here’s a simple question – what price will allow the manufacturing company to make a profit? Unless it awfully close to $750, this seems like charging someone dying of thirst in the desert $750 for a glass of water.

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