Introduction
The day when Martin Shkreli, the current CEO of Turing Pharmaceuticals, increased the price tag of the drug used in the treatment of HIV by 5000% was questioned by everyone in the US. Daraprim is a drug that has been on the market for many years and before the current price, it increases cost no more than 13-14 dollars per tablet. Now, the shocking price of 750 dollars per pill means that the annual cost of the treatment could be hundreds of thousands of dollars (Fang par.1).
Public reaction to Shkreli’s decision
Daraprim is the tradename for pyrimethamine – a compound that helps to treat and prevent malaria and is also used to treat toxoplasmosis. Toxoplasmosis is an infectious disease that can cause serious problems to people with weak immune systems (Rushton par.1). Babies born from infected women are especially at danger since the parasite can cause blindness and neurological complication. Shkreli’s decision to increase the price of a drug that has been used since 1940 by such an incredible amount was immediately met with opposition and critique from various specialists in infectious diseases. Dr. Judith Aberg, the chief of the division of infectious diseases at the Icahn School of Medicine at Mount Sinai, stated that such a sudden increase in the price of Daraprim might compel hospitals to use alternative forms of treatment that could probably be less effective (Pollack par.3).
Shkreli’s response to the critique
Martin Shkreli justified his decision by stating the money the company would get from the increased price would go towards the development of much better analogs for treating toxoplasmosis. During one of the interviews where Shkreli was asked to explain the current price tag of the drug, Shkreli responded: “Because the drug was unprofitable at the former price, so any company selling it would be losing money. And at this price, it’s a reasonable profit. Not excessive at all.” (Boyle par.12). Shkreli also has been questioned about his decision numerous times on Twitter, but people could not get a definite answer from the CEO of Turing Pharmaceuticals, as Shkreli preferred to answer the question by calling names. What is more interesting is that, in reality, a pill of Daraprim costs one dollar to be produced, but, according to Shkreli, this does not count the costs of marketing and distribution (“US Pharmaceutical Company Defends 5,000% Price Increase” par.5).
Unfavorable outcome
The negative backlash Martin Shkreli received from various sources regarding his decision made him to officially state to ABC News that the price of Daraprim was going to be reduced, although he did not specify by how much exactly. However, it did not save him from further critique and accusation towards his price increase. Furthermore, his competitors responded accordingly. As a reaction to Shkreli’s outrageous decision, Imprimis Pharmaceuticals Inc. offered to sell their Daraprim for one dollar per pill. The CEO of Imprimis Mark Baum shared his feeling towards the issue to Business Insider: “I’ve served this patient population for a long time, and when I see a company do this … it just shocks the conscience” (Miller par.4). Figuratively speaking, this move was another nail in the Turing’s coffin.
Conclusion
Martin Shkreli did no good for his company and himself by skyrocketing the price of a 62 years old drug. His arguments for the decision were hardly even sound or reasonable and did not ease the tension formed around him from all sides. Although he has stated that the price of Daraprim would be reduced to make it more affordable, the promise has yet to come into action.
Works Cited
Boyle, Darren. Drugs Boss Who Hiked the Price of Life-Saving HIV Treatment by 5,000%. 2015. Web.
Fang, Janet. This Guy Just Raised the Cost of an HIV Drug by 5000%. 2015. Web.
Miller, Matt.The World’s Most Hated Pharmaceutical Mogul Has New Competition. 2015. Web.
Pollack, Andrew. Drug Goes From $13.50 a Tablet to $750, Overnight. 2015. Web.
Rushton, Christine. Company Hikes Price 5,000% for Drug That Fights Complication of AIDS, Cancer. 2015. Web.
US Pharmaceutical Company Defends 5,000% Price Increase. 2015. Web.