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Perfect example of "Market Based Health Care"

This is a discussion on Perfect example of "Market Based Health Care" within the Current Events forums, part of the Tech Support Forum category. CEO Martin Shkreli: 4,000 percent drug price hike is ‘altruistic,’ not greedy Martin Shkreli — the former Hedge Fund Manager


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Old 09-22-2015, 10:43 AM   #1
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CEO Martin Shkreli: 4,000 percent drug price hike is ‘altruistic,’ not greedy

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Martin Shkreli — the former Hedge Fund Manager and embattled CEO of Turing Pharmaceuticals who has been criticized in recent days for raising the price of a 62-year-old drug by more than 4,000 percent overnight — has been misunderstood.

At least that's the main message from his appearances on various TV news shows Monday and Tuesday. In an interview on "CBS This Morning," Shkreli explained to reporter Don Dahler that the drug in question, Daraprim, was unprofitable at the old price.

Daraprim, which is used to treat a life-threatening condition called toxoplasmosis caused by parasitic infections, had been sold at $18 a pill by the company that previously held the rights to the drug. But when Turing bought the medicine last month, it immediately raised the price to $750 a pill — a move that some patient advocates calculated would bring the annual cost of treatment for a single person to hundreds of thousands of dollars.

Shkreli didn't do himself or his company any favors over the weekend when the news of the price hike went viral online after an HIV/AIDS group complained of the increase and he took to his Twitter account to admonish anyone who dared to question the business decision.
Now I understand the GOP plan to revise Health Care to be "Market Based"

https://www.washingtonpost.com/video...652_video.html
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Old 09-22-2015, 11:43 AM   #2
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Sounds like a perfect explanation by a greedy kid........bet his parents are mighty proud of him. My understanding is the pill was sold for $13.50 and was only increased 5555% by my calculations. No wonder our country and healthcare system are in such trouble.
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Old 09-23-2015, 11:12 AM   #3
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Prime example of supply and demand.......I have the supply and I'll demand whatever I want.

Ok.......the poor guy has relented and will back down on the price but hasn't said when or by how much. Regardless, the guy is nothing more than a predator. He knows virtually nothing in regard to healthcare........other than it is a very lucrative business.
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Old 09-23-2015, 11:49 AM   #4
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If the drug at the old price is unprofitable, it costs more to produce than it is sold for. Who do you propose should make up the difference? How much work would any of the people on this thread do if it cost them more to do the work than they get paid?
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Old 09-23-2015, 11:56 AM   #5
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As I read it, the old price was not profitable due to the price he paid for the patent . . So he pays twice what the patent is worth and raises the price 500 times over what it was sold for.

Sweet deal!

Wonder how many of us can raise our salary 5,000%

The man is a Hedge Fund manager . . thinks like a Hedge Fund Manager . . acts like a Hedge Fund Manager. Saw an opportunity to make a lot of money and jumped on it
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Old 09-23-2015, 12:02 PM   #6
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A bit like having a Real Estate mogul as head of government . . you get someone who is used to taking advantage of every opportunity to line his pockets that comes along

But no one would vote for someone like that would they????
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Old 09-23-2015, 12:06 PM   #7
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Quote:
The former hedge fund manager who ignited a firestorm of criticism over drug prices after hiking the price of a specialized drug from $13.50 a tablet to $750 a tablet said in an interview Tuesday his company will substantially lower the price.

Martin Shkreli, CEO of Turing Pharmaceuticals, told ABC News his company will lower the price of Daraprim after several days of making headlines and receiving complaints from medical groups, however he did not specify the new cost.

“We’ve agreed to lower the price on Daraprim to a point that is more affordable and is able to allow the company to make a profit, but a very small profit,” he said.
Amazing how shining the light on a deal can change the economics!

CEO says drug price will be lowered after hike from $13.50 to $750 a tablet | Fox News
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Old 09-23-2015, 12:11 PM   #8
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After 62 years, the research and development costs have long since been recouped and the price stabilized at a fair profit margin for this drug. However, the company didn't see it that way and even stated that it was doing patients a favor by raising the price an exorbitant amount.

Quote:
Turing spokesman Craig Rothenberg has said the company will use the money from the sales to further research treatments for toxoplasmosis, which he said has long been neglected. He also said the firm had plans to invest in marketing and education tools to raise awareness of the disease
As someone with a medical background, I can tell you that those with compromised immune systems have a very limited choice of treatments for this condition, which is hardly worth treating for those with healthy immune systems. Essentially, the company was telling immune-deficient people to pay up or die. Of course, the company was probably figuring that insurance will foot the bill. In a sense this was just another insurance scam.

However, many immune-deficient patients are also in a group that has a lot of political clout. Due to the massive backlash in PR, not only from the public but also from lawmakers (who depend on the public to get re-elected), the company has now decided to lower the price.
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Old 09-23-2015, 12:17 PM   #9
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Funny, I don't get paid for helping here or for being on this thread, anyone here who does.
I do get paid for work I do for an employer, Seems to be a bad business man who would pay more than it's worth, then expect to raise the price massively without an outcry and likely a fair drop on repeat customers.
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Old 09-23-2015, 12:45 PM   #10
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Turing Pharmaceuticals purchased only the US marketing rights to the drug for $55 million. The drug itself has no patent protection as the patent has long-ago expired. Anyone pharmaceutical company can make it.

The drug pyrimethamine (its generic name) has been around since the Eisenhower administration and is important in the treatment of malaria worldwide. In fact, the WHO recognizes it as one of the drugs that any sufficiently stocked clinic should have on hand. However, in the US we have little malaria but we do have quite a few AIDS patients who have good health insurance. While there is another drug combination looks promising for the treatment of toxoplasmosis, it's not yet FDA approved. This Shkreli guy was just trying to make a huge profit, regardless of what he said earlier about being "altruistic."

So, if this drug costs so much to manufacture that he has to raise the price in order to break even, then how do all those barely-funded clinics in Africa use it? Most over there have no insurance. Once again, there is no patent on the drug -- it's been expired for decades -- Shkreli just bought the US marketing rights. Doesn't anyone else produce pyrimethamine but Shkreli's company?

Answer below:

Quote:
In India, multiple combinations of generic pyrimethamine are available for a price ranging from U.S. $0.05–$0.10 each (3–7 rupees).
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Old 09-23-2015, 01:32 PM   #11
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One of the pretty, but airheaded ditzes on Fox just said that this shows how ACA has failed to bring prices down . . .

Uhboy . .
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Old 09-23-2015, 01:39 PM   #12
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This persons has a University Education !!!.
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Old 09-23-2015, 01:55 PM   #13
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Quote:
Originally Posted by jaxtraw View Post
If the drug at the old price is unprofitable, it costs more to produce than it is sold for. Who do you propose should make up the difference? How much work would any of the people on this thread do if it cost them more to do the work than they get paid?
Who said it is not profitable.......other than the person in question?? And by who's standards?? 5,555% increase would tell me that the original owner had fallen way behind in keeping up with production costs and current pricing. Sure, I could make anything unprofitable if I demanded unreasonable wages. Guess I won't be trimming out your house because I deserve $1,000 an hour and will suffer a loss if I take anything less.

As far as I know, the former manufacturer was not taking a loss on their product.....if they were it was bad business practice. The loss of profit occurred after the slimeball purchased the rights to the drug and applied his greed into the equation. I can make anything unprofitable if I raise my salary high enough. Justification is another matter......I would like to know why this medication spiked the way it did.
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