Hedge Fund Manager Raises Price of Medicine From $13.50 to $750 per Dose

[CanadianLoonie]

...and without governments there would be nothing from stopping a Mad Max style gang of thieves from taking everything you own.

Governments are gangs of thieves taking away the things you own thru legal avenues like taxation, monetary inflation, licensing fees, fines, duties, asset seizures, civil asset forfeitures, eminent domain/expropriation, and what other forms of legal confiscation that I omitted to recall.

The state is in no way involved in this. There are no patents. The issue is that no company has put in the resources to reverse engineer the drug:

You are right on the patent issue and on the control of production/distribution, but the state is still involved because...

It's not patent laws.

As far as I've been able to tell, Turing bought the rights to Daraprim, which is long out of patent but for which there's no approved generic version, and that it also controls most or all of the API that would be necessary for competitors to get approval for a new generic.

...yes, approval meaning the Food and Drug Administration.

People are absolutely furious..furious over Martin Shkreli, the hedge fund manager turned pharma CEO who raised the price on the drug Daraprim from $13.50 to $700 per pill.

"How would free markets deal with this?" They ask. The more cynical blame this on the "dark side of capitalism" as they call for more regulation of drug companies.

Here's the deal, very simply:

Daraprim is not patented, the patent expired ages ago.

So, I can just go and fund a factory tomorrow and sell the drug for $13.50 again and put Shkreli out of business right?

Not so fast. The precious government darlings of the very people who are so angry will not let me. The FDA has certain complex compound carve out rules and a process called strict distribution which make it so I'm not allowed to do so. I can't even import the drug from another country.

Government is the direct and only reason someone can do what Shkreli did.

So what's the solution that misguided masses seek? That's right, they want even MORE regulation and more power to the FDA.

Folks, listen to me, read my lips: the LAWS ARE WRITTEN BY FHE COMPANIES THEY REGULATE - Hillary, Bernie, Jeb and Christy don't sit in their offices with a pen and laptop and come up with 800 page bills. They are written by guys just like Shkreli.

Milton Friedman noted that laws result from well meaning do gooders being coopted by corporate interests. This happens again and again: the corporations want a new law that protects them further, increases monopolies or outright gives them taxpayer money...so they rope in gullible citizen activists to make the changes....often with the citizens thinking they are doing the opposite.

Obamacare is a perfect example. The movie Sicko by Michael Moore went into detail about the problems with HMOs, drug companies and health insurance companies. Who would have thought the solution would be to make the purchase of the product mandatory and take billions of dollars from taxpayers and give it to the insurance execs. Who do people think wrote that law? (Hint: Every company featured in the film Sicko has grown in profits or been acquired...executive pay and bonuses have gone through the roof.)

Shkreli is an opportunist driving on a road paved with people some decades back who said those very harmful words "there outta be a law".

EDIT: Two notes which I thought were clear in the draft but I want to make extra clear: 1) No question this behavior was wrong, unethical and opportunist --- point is that one and only one thing is preventing fair companion from destroying this plan and that's government. 2) Many asked for a solution -- clearly govt regulation doesn't help, it hurts -- we should abolish the FDA and its corrupt practices and we should encourage free and fair competition and imports -- it's an illusion to think the FDA is what protects us -- in many more cases (like this and with imports) it does far more harm

http://t.co/Yce0OQNN9K

[CanadianLoonie]

Patents protection is needed to ensure innovators are rewarded. I guess you missed the part about business ethics.

No, it means you can stop innovating once you've been granted a monopoly for the duration of the patent and rest on your laurels.

In a free market, you get rewarded by developing a market for your product/serivce, with innovation only being the starting point.

If you were an entrepreneur, you would know that ideas are dime-a-dozen and are relatively easy to come up with, while proper and timely execution of those ideas is what is diffcult and is the difference between failure and success.

There is a reason why Nikola Tesla ended up destitute even as an utter engineering genius, while Thomas Edison got the glory, fame, and fortune.

Business acumen is the difference.

[Hugor Hill]

No, it means you can stop innovating once you've been granted a monopoly for the duration of the patent and rest on your laurels.

In a free market, you get rewarded by developing a market for your product/serivce, with innovation only being the starting point.

If you were an entrepreneur, you would know that ideas are dime-a-dozen and are relatively easy to come up with, while proper and timely execution of those ideas is what is diffcult and is the difference between failure and success.

There is a reason why Nikola Tesla ended up destitute even as an utter engineering genius, while Thomas Edison got the glory, fame, and fortune.

Business acumen is the difference.

If I know that after spending millions of dollars to invent a drug, a rival can reverse engineer it immediately, why would I bother with the R & D?

Medicine saves people, not business acumen.

[CanadianLoonie]

If I know that after spending millions of dollars to invent a drug, a rival can reverse engineer it immediately, why would I bother with the R & D?

Medicine saves people, not business acumen.

So are you interested in saving people or making money to begin with?

[The Colt 45s]

Prices of medications fluctuate all the time. There is a new hepatitis cure that costs $100,000 for a ninety-day treatment. Supply and demand dictate the prices.

From my research, what I suspect is happening, the company is seeking revenues to help it conduct new pharmaceutical trials into alternative treatments using the medication: A newly approved treatment equates new patent protections. This practice is common.

It sucks to have to pay that high price, but most people never pay that price. Most people see a co-pay/coinsurance because prices are negotiated between insurers, pharmacies, and pharmaceutical companies.

[Hugor Hill]

Prices of medications fluctuate all the time. There is a new hepatitis cure that costs $100,000 for a ninety-day treatment. Supply and demand dictate the prices.

From my research, what I suspect is happening, the company is seeking revenues to help it conduct new pharmaceutical trials into alternative treatments using the medication: A newly approved treatment equates new patent protections. This practice is common.

It sucks to have to pay that high price, but most people never pay that price. Most people see a co-pay/coinsurance because prices are negotiated between insurers, pharmacies, and pharmaceutical companies.

In most cases sure. But in this case, one dipsh1t is dictating the price. And the rest you are just drinking said dipsh1t's coolaid.

[CanadianLoonie]

In most cases sure. But in this case, one dipsh1t is dictating the price. And the rest you are just drinking said dipsh1t's coolaid.

But it's legal because he is following government laws and regulations...

[-DLC-]

Prices of medications fluctuate all the time. There is a new hepatitis cure that costs $100,000 for a ninety-day treatment. Supply and demand dictate the prices.

From my research, what I suspect is happening, the company is seeking revenues to help it conduct new pharmaceutical trials into alternative treatments using the medication: A newly approved treatment equates new patent protections. This practice is common.

It sucks to have to pay that high price, but most people never pay that price. Most people see a co-pay/coinsurance because prices are negotiated between insurers, pharmacies, and pharmaceutical companies.

Fluctuate??? When a pill jumps 500% overnight, that's not a "fluctuation"...it's off the charts.

Save the "for the betterment of" BS....this is about gouging people for profit. It's about $$, not saving the world.

Sure, let's put our faith in this piece of crap to take care of medical science.

"Most" people. But "some" wouldn't have coverage and may die. How's that ok?

No.

[Hugor Hill]

But it's legal because he is following government laws and regulations...

Wrong. It is legal because there isn't laws and regulations against this kind of price increase.

[The Colt 45s]

Fluctuate??? When a pill jumps 500% overnight, that's not a "fluctuation"...it's off the charts.

Save the "for the betterment of" BS....this is about gouging people for profit. It's about $$, not saving the world.

Sure, let's put our faith in this piece of crap to take care of medical science.

"Most" people. But "some" wouldn't have coverage and may die. How's that ok?

No.

It takes a lot of $$$ to fund medical research. It also takes many years of expensive clinical trials to bring a patent to market. Raising the medication's price raises immediate operating capital, and this capital is used to fund further research and development. This happens all the time. Take Noven's Brisdelle, a low dosage version of Paxil. Paxil is an SSRI antidepressant that went off-patent years ago and costs about $3.50 for a thirty day supply whereas Brisdelle is now patented to treat menopausal hot flashes and costs about $175.00 for a thirty day supply. Different patented treatments, different costs.

[Warhippy]

HAhahaha we have a heart in the industry after all

 

Suck it Shkreli, suck it and die!  Some nobody just stepped on the toes of big pharma and those wonderful patentless drugs that are being used to make fortunes off of the sick.  It's via loophole but hell yes good news

 

http://usuncut.com/class-war/martin-shkreli-explodes-1-dollar-aids-pill/

 

A pharmaceutical company called Imprimis Pharmaceuticals Inc announced on Thursday that they are offering an alternative to Daraprim — the drug whose 5,550 percent price gouge caused nationwide outrage — and intend to sell it for $1 a pill.

Martin Shkreli, also known as “Pharma Bro,” the CEO of Turing Pharmaceuticals who purchased the rights to the drug used in HIV and AIDS treatments and skyrocketed the price to $750 overnight, quickly became the poster child for big pharmaceutical greed. The previous price for Daraprim was $13 a pill before Shkreli’s much-maligned price hike.

As US Uncut reported last week, the news of Senator Bernie Sanders’ presidential campaign donating Shkreli’s $2,700 donation to medical research incited a furious reaction from Shkreli.

Imprimis generally develops compounded medications for prescription drugs that do not meet the needs of a patient, Yahoo News reported.  They will now be offering a compounded formula of Turing’s drug in capsule form.

Beyond Daraprim, the company also announced that they plan to continue creating compounds of drugs that are sold far above their actual cost.

The company also offers massive discounts on their drugs for those in need, like Medicaid recipients, sometimes as low as $1 for an entire bottle.

The one drawback of what Imprimis is doing is that their formulation is not FDA approved. However, it can still be legally sold through a doctor’s prescription.

Even though, Pyrimethamine is generic, meaning anyone could make a competitor for Daraprim, it was just that nobody had, since it was a niche drug and not destined to be a big money maker.

If Imprimis wanted to get FDA approval it would reportedly take years and millions of dollars, which would make it more difficult for the company to keep their prices affordable.

US Uncut reached out to Shkreli for comment. His only response to us was “lol.”

[Lancaster]

^

While some would like to criticized "capitalism" for the price hike.... it's capitalism that's bringing in an alternative. 

The new pills probably just costs pennies to produce, thus even at a dollar a pill, the company will still make a killing considering they'll get all the business from now on (at least until another competitive product comes onto the market). 

[Dancin'Droid]

Governments are gangs of thieves taking away the things you own thru legal avenues like taxation, monetary inflation, licensing fees, fines, duties, asset seizures, civil asset forfeitures, eminent domain/expropriation, and what other forms of legal confiscation that I omitted to recall.

You do realize that government is the only reason you can actually own something? I can say that Vancouver or the moon is my property but unless thereis a gang of thieves enforces it no one will listen to you.

[Hugor Hill]

Update: competitor introduces a $1 pill

http://finance.yahoo.com/news/drug-compounder-offers-cheap-version-194229044.html

TRENTON, N.J. (AP) -- Stepping into the furor over eye-popping price spikes for old generic medicines, a maker of compounded drugs will begin selling $1 doses of Daraprim, whose price recently was jacked up to $750 per pill by Turing Pharmaceuticals.

San Diego-based Imprimis Pharmaceuticals Inc., which mixes approved drug ingredients to fill individual patient prescriptions, said Thursday it will supply capsules containing Daraprim's active ingredients, pyrimethamine and leucovorin, for $99 for a 100-capsule bottle, via its site: www.imprimiscares.com.

 

 

 

[CanadianLoonie]

Update: competitor introduces a $1 pill

http://finance.yahoo.com/news/drug-compounder-offers-cheap-version-194229044.html

[DeNiro]

I wouldn't say they're anti-capitalist. If that were true they would be against themselves.

I would say it's more anti-greed.

[elvis15]

Figured I'd give this another bump after some news today:

CEO who raised price of life-saving drug 5,000% arrested on securities fraud

Quote

The drug company CEO who sparked worldwide outrage for raising the price of a life-saving pill by 5,000 per cent has been arrested on securities fraud.

Pharmaceutical entrepreneur Martin Shkreli, 32, was arrested by the FBI as part of a securities fraud investigation early Thursday morning at his New York City home, according to Reuters.

The allegations date back to a former hedge fund and drug company Retrophin Inc. Shkreli founded in 2011.

His arrest was confirmed Thursday by FBI spokeswoman Kelly Langmesser.

[D-Money]

18 minutes ago, elvis15 said:

Figured I'd give this another bump after some news today:

CEO who raised price of life-saving drug 5,000% arrested on securities fraud

[Tre Mac]

Looks like the founder of Retrophin is going to get it up his Rectumphin in the penn.

[otherwise]

He is also the guy who bought the Wu-Tang album once upon a time in shaolin, which means the FBI might end up owning it.. or maybe it will be released to the public???????? Apparently this guy was also planning on bailing Bobby Shmurda out, don't think that will happen now.