USA drug company to cut 5000% price rise after backlash

In an unrelated incident, Turing Pharmaceuticals announced plans to raise the price of pyrimethamine (Daraprim) by more than 4000%.

The drug, which is popular for treating life-threatening parasitic infections increased about 5,000 percent from $13.50 per tablet to $750 after the Turing purchased the rights, the New York Times reported.

His main reason for increasing the price of the drug was because he believed his company was not making enough of a profit.

Daraprim fights toxoplasmosis. The infection is particularly unsafe 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.

Martin Shkreli, CEO of Turing Pharmaceuticals, announced on Tuesday, September 22 that there will be a rollback in the price of live-saving Daraprim, which is used for the treatment of toxoplasmosis or parasitic infections, usually associated with AIDS.

The price increase evoked outrage among some patients and industry groups.

Presidential candidates and political leaders have also expressed disagreement over the price hike. A Turing spokesman said the company is committed to “a serious price adjustment”, but hasn’t decided how much or set a timetable.

“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.

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.

That move was met by accusations of price gouging, and Rodelis agreed to return the drug to Purdue Research Foundation, which oversees the non-profit that manufactures the drug. That happens when several companies make the same generic drug or similar brand-name drugs.

The Human Rights Campaign was among the critics of the increase.

Bach noted Canadian drugmaker Valeant Pharmaceuticals global Inc. twice this year bought heart drugs and then hiked the price threefold or more.

“It’s all legal”, Bach said.