Daraprim,
a 62-year-old drug used to treat the life-threatening parasitic infection,
toxoplasmosis, experienced a dramatic price hike after being acquired by the
start up Turing Pharmaceuticals, run by former hedge fund manager Martin
Shkreli. While Shkreli maintains that the cost hike will fund new research in
treating toxoplasmosis and is now in line with the costs associated with
treatment for other rare disease, physicians and members are not pushing for
drug reformulation as the associated side effects of Daraprim can be easily
managed. The price increase is in line with Shkreli’s developing reputation for
questionable profit acquisition in the drug arena: in 2011, he started another
company whose primary focus was acquiring old drugs and increasing their
prices; prior to that, he worked to stall drug approvals made by companies
whose stock he was short selling.
Shkreli is not alone in the business of, seemingly, questionable drug
price hikes: this year alone, Cycloserine, a tuberculosis drug, and Isuprel and
Nitropress, both heart drugs, experienced dramatic price increases after they
were acquired by other drug companies. Even Daraprim’s price increased from $1
a tablet to $13.50 after it as acquired by CorePharma, prior to Turing’s
acquisition this year.
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