Originally Posted by
Cilvaringz
Despite your epic meltdown, I will tell you in all honesty what he told us and then you can draw your own conclusion. It's complex and I'm still trying to figure it out ok, so bear with me old tiger.
Martin acquired the rights to Daraprim for 55 million USD. Daraprim treats toxiplasmoses, an infection that can prove fatal if the immune system is suppressed and not capable of handling it (like in AIDS or Cancer patients). It's a case that happens rarely, apparently about 2000 people a year. He says that when he bought the rights, a pill cost $13.50 and was losing over 6 million USD a year because it was rarely used. Compare for example with Ibuprofen that's used by millions upon millions. Now, apparently this treatment has been around since the 40s or 50s. This means that the patent on it has long expired, and you would think everybody and their momma would be making generic versions right? Wrong. Nobody is. Why? Nobody gives a fuck. Why? Because it's only 2000 people, what profit is in that? Shows you why the previous company holding the rights was losing 6 million usd on it per year right? So... two things can happen. Everybody stops giving a fuck, nobody makes this rare disease medicine anymore cause there's no money and 2000 people end up dying on an annual basis. Or in comes Shkreli, the young hedge fund millionaire who wants to specialize in treatments in rare diseases. The problem is, how is he going to find investors to pay 55 million to acquire the rights to Daraprim. The shit is losing 6 mil a year, who in their right minds is going to invest in that? Well, the drug must be under priced then you'd think. But it only costs less than a dollar to manufacture. Yes, but it's a drug from the 40s, nobody ever cared to develop it further because who gives a fuck about 2000 folks, so the drug is highly toxic with nasty side effects, it needs R&D, research and development. Martin claims he wants to make a much more effective and cleaner version of the drug. This he said, meant additional millions in R&D and the extremely expensive FDA costs that come with it, on top of the 55 million paid to acquire the rights. So what did he do? He raised the price on the pill, from 13.50 to 750 usd. And he quickly added that he would only charge this to insurance companies. If a patient would not be insured or have the money to pay for one, Turing Pharma would make sure the patient got it for 1 USD or for free. And this would be the only way to keep this treatment available, keep his investors happy and maximize profits to reinvest in making a cleaner version of the pill.
This is basically what he explained to us with a straight face. Now, I'm no pharma expert so I don't know if his analysis is based on actual facts and truths. But I don't want to jump on the bandwagon just yet. I like to understand things first. From a pure logical perspective, the analysis makes sense. And if it's true then the media has really spun this the wrong way around. That still don't make it right because unregulated drug pricing should not be possible anyway and R&Ds and FDA trials should be subsidized. From an ethical perspective I don't know yet. What makes it difficult to believe is his attitude in the press and the crazy random shit he be saying.
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