Scumbag of the Week

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Martin Shkreli Is Big Pharma’s Biggest A**hole

Thanks to Martin Shkreli, life-saving drug Daraprim will now cost $750 per pill—up from $13.50. And no one, not even the FDA, can stop him.

Hedge fund manager Martin Shkreli is 32 years old but he’s acting half that age on Twitter today after news broke that his company, Turing Pharmaceuticals, had raised the price of the life-saving drug Daraprim from $13.50 to $750 per pill.

Daraprim is used to treat toxoplasmosis, a condition caused by a parasite that exists in nearly a quarter of the U.S. population over age 12, but which can prove deadly for the unborn children of pregnant women and for immunocompromised individuals like AIDS patients. These vulnerable populations will now have to pay over 5,000 percent more for their treatment.

Due to the sudden price hike, Shkreli, whose company only acquired Daraprim last month, has already dethroned the dentist who killed Cecil the Lion as the most-hated man in America. And based on his social media behavior, he has no interest in shaking off that reputation.

[AURaptor 1,122]

I heard part of his excuse and all I could think of is how it sounded like something from The Onion.

[homersapien 11,367]

Free market capitalism at work.

What's the problem?

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Free market capitalism at work.

What's the problem?

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Found an interesting comment over at Gawker on the matter:

This seems to happen with a lot of generics and for reasons that are not as clear-cut as in this case:

At Toy’s pharmacy, the cost of a bottle of the generic heart medication digoxin shot up from $131 in September to $989 a month later for the same dosage. He said tetracycline, an antibiotic used to treat bacterial infections, rose from $31 for a specific dosage to $450 over the past year.

In some cases, the increases can be explained by a manufacturing problem that puts the drug in short supply or a shortage of a key raw material used to make the medication. But in many of the cases, observers say, the extreme jump in price comes without an explanation and seems to make no sense.

Dr.

David Belk

, an Alameda internist who hosts a website called the True Cost of Healthcare, said he’s noticed that some generics will

experience a price hike in a specific dosage of a drug, while the same drug at a different strength will stay the same. In other cases, he said, prices will shoot up and then drop in a short period of time.

I’d venture to guess that, partly due to our screwed-up healthcare system, pharmaceutical companies know they can get away with outrageously overcharging on generic drugs that cost them pennies to manufacture.

Incidentally, two lawmakers opened an investigation into this matter last year. One of them is currently running for the Democratic nomination:

“It is unacceptable that Americans pay, by far, the highest prices in the world for prescription drugs,” says

U.S. Sen. Bernard Sanders

(I-Vt.) in a

statement

. “Generic drugs were meant to help make medications affordable for the millions of Americans who rely on prescriptions to manage their health needs. We’ve got to get to the bottom of these enormous price increases.”

[icanthearyou 4,462]

Free market capitalism at work.

What's the problem?

Exactly. Shkreli is not determining the price. Supply and demand (market forces) are determining the price. To the ideological economist (likely an extremist), there is no such thing as price gauging.

Unfortunately, too many do not see the virtues of capitalism as the inherent fairness, equality, and innovation spurred by competition. Too many see the concentration of power that stifles competition through domination and leads to exploitation, gauging, and inequality as the ultimate prize.

Politically, I think we need to understand and appreciate the difference between policies that promote a growing and robust economy versus, policies that promote the dominance of a monopoly, or oligopoly, and the growth personal fortunes. I think we have to understand that the latter is ultimately self defeating.

[AURaptor 1,122]

I don't like the price? Then develop your own pill.

[MDM4AU 332]

Found an interesting comment over at Gawker on the matter:

This seems to happen with a lot of generics and for reasons that are not as clear-cut as in this case:

At Toy’s pharmacy, the cost of a bottle of the generic heart medication digoxin shot up from $131 in September to $989 a month later for the same dosage. He said tetracycline, an antibiotic used to treat bacterial infections, rose from $31 for a specific dosage to $450 over the past year.

In some cases, the increases can be explained by a manufacturing problem that puts the drug in short supply or a shortage of a key raw material used to make the medication. But in many of the cases, observers say, the extreme jump in price comes without an explanation and seems to make no sense.

Dr.

David Belk

, an Alameda internist who hosts a website called the True Cost of Healthcare, said he’s noticed that some generics will

experience a price hike in a specific dosage of a drug, while the same drug at a different strength will stay the same. In other cases, he said, prices will shoot up and then drop in a short period of time.

I’d venture to guess that, partly due to our screwed-up healthcare system, pharmaceutical companies know they can get away with outrageously overcharging on generic drugs that cost them pennies to manufacture.

Incidentally, two lawmakers opened an investigationinto this matter last year. One of them is currently running for the Democratic nomination:

“It is unacceptable that Americans pay, by far, the highest prices in the world for prescription drugs,” says

U.S. Sen. Bernard Sanders

(I-Vt.) in a

statement

. “Generic drugs were meant to help make medications affordable for the millions of Americans who rely on prescriptions to manage their health needs. We’ve got to get to the bottom of these enormous price increases.”

I've heard this referred to as the Sovaldi effect. Sovaldi is one of the new Hep C drugs that actually cures you of Hep C. There are generic makers out there saying, "well, if they can get $1000 a pill, I can take mine from $2-3 up to $7-8 and no one will notice." The consumers copay remains the same ($10-15) but the total cost of the drug went from $60-90/month to $210-240/month. The cost of Rx is skyrocketing right now. The PEEHIP plan saw their drug spend increase something like 22% last year.

Here is a blog about Rx cost increases from March of this year.

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Time to revisit this.

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I'm glad they skipped the trial and he's been properly convicted.

[augolf1716 21,109]

Well deserved