23 September 2015

What Happens When This Doesn't Generate a Media Sh%$ Storm?

Martin Shkreli, the hedge fund pharma executive who generated outrage when he bought a drug for rare diseases and boosted its price by over 5555%, has backed down after he got called out by the New York Times:
"Yes it is absolutely a reaction — there were mistakes made with respect to helping people understand why we took this action, I think that it makes sense to lower the price in response to the anger that was felt by people," Shkreli, 32, said.

Turing Pharmaceuticals of New York bought the drug from Impax Laboratories in August for $55 million and raised the price. Shkreli said Tuesday the price would be lowered to allow the company to break even or make a smaller profit.

Daraprim fights toxoplasmosis. The infection is particularly dangerous for people who have weakened immune systems, like AIDS patients, as well as for pregnant women, according to the Centers for Disease Control and Prevention.


Democratic presidential candidate Hillary Clinton was among those who expressed outrage over the price increase. On Tuesday she outlined a plan she said would limit how much patients have to pay out of pocket for medications each month.
As I noted last night, after Glaxo Smith Kline sold the drug market rights and before Shkreli bought the drug, the price was raised by 1350%, from $1.00 to $13.50 a pill, but since it wasn't going from $13.50 to $750.00 a pill, nobody batted an eyelash.

Notwithstanding the protestations of contemptible greedheads like Martin Shkreli, generating unearned profits through financial engineering and exploitation of monopoly power benefits no one but contemptible greedheads like Martin Shkreli.


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