Fury rises over drug price spikes

“And with these new profits we can spend all of that upside on these patients who sorely need a new drug, in my opinion”, Shkreli continued.

When Turing acquired Daraprim back in August the drug cost all of $13.50, now it’s priced at a hefty $750. Adding insult to injury, Martin Shkreli, CEO and founder of Turing Pharmaceuticals, the company that bought Daraprim, then unleashed a set of Tweets flaunting both his wealth and indifference for those who will not be able to afford the hike in costs. Now the catalyst that ignited a Twitter outrage this week was in the specifics of the price.

He reversed course under pressure Tuesday night, but not before the national attention struck fear into the hearts of biotech investors over increased scrutiny of drug prices, sending stocks plummeting. The two political figures were said to have sent a letter to the pharmaceutical company, calling the activity the most recent inclusion on the list of price hikes involved in several essential drugs. Hillary Clinton, a Democratic presidential candidate, called the move “price gouging”.

It is quite apparent that Shkreli has heard the outcry.

But rising drug prices are likely to remain an issue for the industry. Shkreli has already responded to media backlash with a promise to lower the price of the drug.

Companies generally can charge what they want for approved drugs because the USA government doesn’t regulate medicine prices, as other countries do.

Ricky said Wednesday that Shkreli was a silent partner in Collect Records and that he was heartbroken by the revelations.

That means the primary check on medicine prices is large buyers – insurance companies, big hospital chains and group purchasing organizations that negotiate sizable discounts off the manufacturer’s wholesale price.

“Martin Shkreli’s stated rationale for hiking the price of a lifesaving drug used by many AIDS patients within hours of acquiring the rights to the drug seems like a page taken right out of the pharmaceutical industry’s “profits before patients” playbook”, said AHF Chief Pharmacy Officer Scott Caruthers.

The price of Daraprim will undergo a rollback after Turing Pharmaceuticals imposed a 5,000 percent price hike.

She said the drug was also used for malaria treatment but there were other alternative drugs for first line treatment of the disease.

“It’s all legal”, Bach said.