Turing Pharmaceuticals is price gouging a critical drug for HIV/immunocompromised

[PizzaSHARK]

http://www.usatoday.com/story/news/h...prim/32563749/

Apparently the CEO of this company is a prick that's done this before, with a different drug and different company. The drug in question is Daraprim (pyrimethamine), and sold for $17.50 a pop previously, and Turing spiked the price up to $750 apiece after purchasing exclusive rights to the drug. That same drug costs about 2¢ apiece in India.

Honestly, how the hell is this even legal? I'm not against companies out to make a profit, and spokespeople for Turing Pharmaceuticals claim that they're spiking the price to increase revenue for toxoplasmosis research (which is the condition in question that the drug is used to treat) as well as increase marketing campaigns and awareness for the condition, but... we're talking about a 5000% increase in the price of the drug. How can they possibly justify increasing the price from $17.50 to $750?

EDIT: Important note: Daraprim (pyrimethamine) is on the World Health Organization's List of Essential Medicines. This medicine isn't a luxury, it's a necessity.

[melodramocracy]

And people wonder why some have absolutely zero faith in the US healthcare system.

[lockedout]

Does Obamacare cover it?

[Deleted]

http://www.usatoday.com/story/news/h...prim/32563749/

Apparently the CEO of this company is a prick that's done this before, with a different drug and different company. The drug in question is Daraprim (pyrimethamine), and sold for $17.50 a pop previously, and Turing spiked the price up to $750 apiece after purchasing exclusive rights to the drug. That same drug costs about 2¢ apiece in India.

Honestly, how the hell is this even legal? I'm not against companies out to make a profit, and spokespeople for Turing Pharmaceuticals claim that they're spiking the price to increase revenue for toxoplasmosis research (which is the condition in question that the drug is used to treat) as well as increase marketing campaigns and awareness for the condition, but... we're talking about a 5000% increase in the price of the drug. How can they possibly justify increasing the price from $17.50 to $750?

EDIT: Important note: Daraprim (pyrimethamine) is on the World Health Organization's List of Essential Medicines. This medicine isn't a luxury, it's a necessity.

Actually that would be 4285.71% price increase.

But yeah... that price spike is borderline insane if not outright twisted.
I really cant see it staying for too long once people stop dropping left and right.
My guess is this is just a publicity stunt just like Nestle's CEO comments about water.

[PACOX]

Pharmaceutics in the US (and probably everywhere?) is predatory in nature.

Many doctors are in the business of pushing certain drugs and procedures not for need but for profit. And why shouldn't they if its the nature of the business? Its all money laundering, you scratch my back and scratch your while we both get rich in the process. Had a doctor suggest that one of my clients get some hygienic foot care done through him to take advantage the insurance payouts. It cost the client the same to go to a nail salon, the difference is the nail salon can't bill the insurance agency.

Medicine is all about profiting off stuff people need. The medical industry would be completely different is it prioritized (on a macro level) health > $$$.

Profits > health.

[Deleted]

Many doctors are in the business of pushing certain drugs and procedures not for need but for profit. And why shouldn't they if its the nature of the business? Its all money laundering, you scratch my back and scratch your while we both get rich in the process. Had a doctor suggest that one of my clients get some hygienic foot care done through him to take advantage the insurance payouts. It cost the client the same to go to a nail salon, the difference is the nail salon can't bill the insurance agency.

Medicine is all about profiting off stuff people need. The medical industry would be completely different is it prioritized (on a macro level) health > $$$.

Profits > health.

Eeeeeeeeeexcept that certain stunts backfire so bad you go from profit increase to drastic profit decrease. Here's how it works:

1) Make an outrageous price
2) People riot/find alternative cure
3) People no longer need your drug
4) Profits plummet

And if you think that you can prevent people from using alternative medicine by just imposing law... well... tell me how war on drugs worked out for USA?

Pharmaceutics in the US (and probably everywhere?) is predatory in nature.

Here in UK I remember renting a room fron a lady whose son had some health problems not so long ago. He then got a prescripton from the doctor and recieved a bunch of drugs free of charge. I assume it may be the same for adults as well. So NO. Anywhere else besides US people are sane and dont monetize human health all that much.

[Crissi]

Fuck that. Hiking an essential drug like that, by that much, is pathetic. A small hike is acceptable, but 5000% is completely necessary for the mission stated.

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Eeeeeeeeeexcept that certain stunts backfire so bad you go from profit increase to drastic profit decrease. Here's how it works:

1) Make an outrageous price
2) People riot/find alternative cure
3) People no longer need your drug
4) Profits plummet

And if you think that you can prevent people from using alternative medicine by just imposing law... well... tell me how war on drugs worked out for USA?

The alternative treatments dont work nearly as well.

[PizzaSHARK]

Does Obamacare cover it?

Turing claims that they're planning reduced-cost and no-cost alternatives for the uninsured and people who can't afford it, and hospitals are still stocking it and administering it regardless of the new price.

This may just be a way for Turing to gouge insurance companies for more money. If anything needs to happen with our healthcare system, the providers and insurance companies need to be taken out back and whipped with a tree branch for a couple hours until they knock that silly shit off.

[Dsonsion]

That's just cruel of him. They've clearly gone beyond the boundaries of reasonable price hiking. This is a good example of why markets need some sort of regulation.

[Spectral]

I guess it's not clear to me why people think they have the right to tell a company what price they're allowed to sell a product they developed at. This is emphatically not a charity. The purchasing entities should decide what they're willing to pay for it; ideally, a government would pay a pretty high price if they think it's worth it.

The only thing that bothers me is that they're plainly lying about their motivation for the price hike.

[Deleted]

The alternative treatments dont work nearly as well.

Still better than that insane price.

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I guess it's not clear to me why people think they have the right to tell a company what price they're allowed to sell a product they developed at. This is emphatically not a charity. The purchasing entities should decide what they're willing to pay for it; ideally, a government would pay a pretty high price if they think it's worth it.

It becomes a right when preventable deaths of majority start occuring for the sake of selfish minority.

[Endus]

In short, this is exactly how capitalism is intended to work. The need for the drug means that demand is high, ergo unless they increase supply, price will rise. If they have an effective monopoly, they have little reason to increase the supply, since this would only dilute the demand, rendering lower profits per unit. It doesn't matter that people need it to live, because that factor is irrelevant in a capitalist framework. Well, not irrelevant; it means there's higher demand and you can raise the price. It certainly does not suggest the price should be kept low.

Now, I totally agree that all that's reprehensible, but then, this kind of stuff is why I'm a self-avowed socialist.

[PizzaSHARK]

I guess it's not clear to me why people think they have the right to tell a company what price they're allowed to sell a product they developed at. This is emphatically not a charity. The purchasing entities should decide what they're willing to pay for it; ideally, a government would pay a pretty high price if they think it's worth it.

The only thing that bothers me is that they're plainly lying about their motivation for the price hike.

Because most of us have some sort of moral code and realize how horrible of a person you'd need to be in order to behave like this. This is not a new or experimental drug that just arrived after billions of research dollars, dude - it was developed and approved back in 1953.

I guess most of us believe that corporations should have some sort of ethics along with their business sense. Though, frankly, I don't understand why medicines that are on the WHO's list of essential medicines aren't controlled by the government, anyhow. If the international organization that basically defines modern healthcare says they're necessities, why are we leaving their distribution in the hands of private companies rather than the state?

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In short, this is exactly how capitalism is intended to work. The need for the drug means that demand is high, ergo unless they increase supply, price will rise. If they have an effective monopoly, they have little reason to increase the supply, since this would only dilute the demand, rendering lower profits per unit. It doesn't matter that people need it to live, because that factor is irrelevant in a capitalist framework. Well, not irrelevant; it means there's higher demand and you can raise the price. It certainly does not suggest the price should be kept low.

Now, I totally agree that all that's reprehensible, but then, this kind of stuff is why I'm a self-avowed socialist.

Every system has its flaws. The ideal system would likely be found somewhere in between the extremes, but good luck getting any government to adopt and uphold such a system, even if you could figure out which elements of which systems you need for this ideal system in the first place.

This kind of behavior sounds like a damn plot point for a Shadowrun campaign, though.

[Independent voter]

Retrophin

Retrophin was created in February 2011 as a potential solution to Muscular Dystrophy.[6] It was created and run from the offices of MSMB Capital as a portfolio company. Retrophin is a biotechnology company dedicated to creating treatments for orphan diseases.[3] He was fired by the Board of Retrophin and replaced as CEO by Stephen Aselage in September 2014.
Controversy

Shkreli has been known to make controversial statements on Twitter about others.[7]

In September 2014 Retrophin acquired the rights to thiola, a drug used to treat the rare disease cystinuria. It was with Shkreli as CEO that Retrophin introduced a 20-fold price increase for Thiola, despite no additional research and development costs incurred by obtaining these rights.[8][9]

Shkreli has also came under fire from CREW (Citizens for Responsibility and Ethics in Washington) for the alleged manipulation of the FDA regulatory process in order to move stock prices for his own financial gain,[10] though these allegations did not result in any charges.

On August 17, 2015, Retrophin filed suit against Shkreli seeking $65 million in damages.

In August 2015 Turing Pharmaceuticals, Executive Chairman Martin Shkreli raised the price of Daraprim from $13.50 per pill to $750 per pill — a 5,455% increase[4] — shortly after purchasing the rights to the drug. Turing has exclusive rights to market Daraprim, which has been on the market since 1953. [11]

[dejaa]

That same drug costs about 2¢ apiece in India.

At that price, it's cheaper to take a vacation to India, see a doctor there and get a prescription for as much as you need for a 2c a pill.

[PizzaSHARK]

At that price, it's cheaper to take a vacation to India, see a doctor there and get a prescription for as much as you need for a 2c a pill.

That's the joke that's starting to sound more like a practical piece of advice. You could also maybe see about getting it shipped from India, even though that would probably be illegal. You could probably still get it done via Silk Road or a similar service for far less than you'd pay for the drug here.

[Mormolyce]

Mmmm, that's some good PR.

Actually that would be 4285.71% price increase.

But yeah... that price spike is borderline insane if not outright twisted.
I really cant see it staying for too long once people stop dropping left and right.
My guess is this is just a publicity stunt just like Nestle's CEO comments about water.

4285.714%

Let us continue this mindless pedantry out to more and more decimal places!

[PizzaSHARK]

Shkreli has been known to make controversial statements on Twitter about others.[7]

Yeah, there was some editorial on a site I'd never heard of that said Shkreli basically flamed him on Twitter, but there were no links to the posts in question so I just wrote the whole thing off. Hard to believe a multimillionaire CEO would act like a 12 year old on the internet, but not unheard of.

[Spectral]

It becomes a right when preventable deaths of majority start occuring for the sake of selfish minority.

It really doesn't. Lots of deaths are preventable in all sorts of ways that countries aren't willing to pay to prevent. Triage really is a thing.

[PizzaSHARK]

It really doesn't. Lots of deaths are preventable in all sorts of ways that countries aren't willing to pay to prevent. Triage really is a thing. Also, let's be clear about terms - this isn't the "majority", it's a tiny minority with a mostly avoidable disease.

Sure, but this minority are people that are immunocompromised in some way, which makes this mostly avoidable disease potentially fatal for them. Toxoplasmosis infects something like 60 million in the US, according to a quicksheet on the Mayo Clinic's website, so it's not precisely "mostly avoidable" when it infects such a large percentage of people in a first-world country. It's just that it doesn't really do anything to healthy people with healthy immune systems, because our immune systems keep it in check.

Also, the idea of triage being tied to revenue sounds pretty dystopian to me. What's the Hippocratic Oath say about a situation like this, or are pharmaceutical companies not really beholden to that code?