5000% Increase in Price of Drug

Smart business or greedy business?

In reading the title you might think I accidentally tacked on one, two, or three extra zeros. Unfortunately for the thousands of patients out there using Daraprim all of those zeros belong. Daraprim is a 62 year old drug that was recently bought by Turning Pharmaceuticals. CEO Martin Shkreli defends his decision to raise the prices and makes many statements on how he believes that he did nothing wrong.  Daraprim is a drug used for treatment of eating under-cooked meat, contaminated water, and some cancer and AIDS patients use.

Where does all this money go?

Before this drastic price increase Shkreli claimed that Daraprim was an unprofitable drug to pharmacies and actually lost them money. That being said, Daraprim's new price of $750/pill from $13.75/pill now generates profit. According the Shkreli the revenue will also go towards research of Toxoplasmosis and finding a cure. According the Turning Pharmaceuticals, the primary stakeholders for this company are the patients therefor the research is a top priority.

People lash out.

Of course a price increase like that doesn't happen without major outrage. Even Hilary Clinton came out and said "Price gouging like this in the specialty drug market is outrageous". Oncologist are also outraged with this price increase. Dr. David Agus said "Patients shouldn't be taxed and charged for future research and development. Patients should pay for the drug they're getting and what they need in the situation that they are".

Works Cited:

"Turing Pharmaceuticals CEO Martin Shkreli Defends 5,000 Percent Price Hike on Daraprim." CBSNews. CBS Interactive, 22 Sept. 2015. Web. 23 Sept. 2015.