Do you want your life-saving pill for $750 a pill or $1 a pill? That’s your choice and I’m betting on the free markets working for this one and teaching one overreaching CEO a lesson.
Remember Martin Shkreli the Turing Pharmaceuticals CEO who increased the price of Daraprim from $13.50 a capsule to $750 a capsule because the drug costs so much to make and he wanted the profits for future research?
The drug in question, Daraprim, happens to be the only drug that is approved for treatment of a life-threatening parasitic infection.
He learned a tough lesson. A San Diego biomedical company on Thursday announced it’s selling an alternate medication to Daraprim for $1 a capsule, the San Diego Union-Tribune reported.
Mark L. Baum, CEO of Imprimis Pharmaceuticals, told the paper that one catch is that its formula isn’t FDA-approved and may be sold only through a doctor’s prescription to a specific person. He added that the process of getting FDA approval would take years and cost millions, while not filing keeps prices low and profits higher.
That does tell us something about the FDA too. Drugs are too scarce and too expensive because of this government agency which has grown so large that it has whole departments whose entire purpose is to feed off itself and stamp papers.
Shkreli said he needed the increase to fund research in the future. Then he said he would lower the price after the furor over his pricing and capped co-payments at $10 for patients with regular insurance and $1 for Medicaid patients.
He is defending himself on Twitter and on various TV news and business programs.
Mr. Shkreli explains why he raised the price 5000% in the video below. Sixty percent of his patients get the pill for one penny, he said.