View Full Version : Company hikes price 5,000% for drug that fights complication of AIDS, cancer



kelroy55
09-21-2015, 09:57 AM
Sounds like greed to me...


A drug treating a common parasite that attacks people with weakened immune systems increased in cost 5,000% to $750 per pill.

At a time of heightened attention to the rising cost of prescription drugs, doctors who treat patients with AIDS and cancer are denouncing the new cost to treat a condition that can be life-threatening.

Turing Pharmaceuticals of New York raised the price of Daraprim from $13.50 per pill to $750 per pill last month, shortly after purchasing the rights to the drug from Impax Laboratories. Turing has exclusive rights to market Daraprim (pyrimethamine), on the market since 1953.

Daraprim fights toxoplasmosis, the second most common food-borne disease, which can easily infect people whose immune systems have been weakened by AIDS, chemotherapy or even pregnancy, according to the Centers for Disease Control.

“This is a tremendous increase," said Judith Aberg, a spokesperson for the HIV Medicine Association. Even patients with insurance could have trouble affording the medication, she said. That's because insurance companies often put high-price drugs in the "specialty" category, requiring patients to pay hundreds or even thousands of dollars a year. Patients whose insurance plans require them to pay 20% of the cost — a common practice — would shell out $150 a pill.

About 60 million people in the United States may carry the Toxoplasma parasite, according to the CDC. It comes from eating under-cooked meat, cooking with contaminated knives and boards, drinking unclean water and contact with infected cat feces.

Mothers can also pass it to their children during pregnancy and organ transplant patients can get it through an infected donor. Symptoms can feel flu-like, but the parasite attacks the brain and can lead to blindness or brain damage.

A number of doctors and patient advocates recently have spoken out about the rising costs of prescription drugs.

The average cost of brand-name medications rose 13% in 2013, according to a report from the Prime Institute at the University of Minnesota. New cancer drugs now routinely cost more than $100,000 a year. A new brand-name hepatitis drug, Sovaldi, costs $84,000 for a 12-week course of treatment.

"Every week, I’m learning about another drug that has increased in price because of a change in marketing or the distributor,” Aberg said.

The HIV Medicine Association and Infectious Diseases Society of America wrote Turing about concerns over the new price. Aberg said she worries the increase will prevent hospitals from stocking Daraprim, which could delay patient treatment. There are no alternative brands for pyrimethamine, and other treatments are not strong enough.

The price increase hasn’t yet delayed patient care, said Rima McLeod, medical director at the University of Chicago Toxoplasmosis Center.

"Turing’s people have been helpful every single time," McLeod said, noting that she has been able to get patients on medication on the day they needed it.

McLeod heads research on toxoplasmosis in Chicago. She said up to 3 billion people in the world are infected with the parasite, which attacks the brain.

“It’s a serious disease and it’s been neglected in this country for a long time, for the most part,” McLeod said.

It’s critical that the treatment stays readily available, McLeod said.

“It makes the difference between whether people see or don’t see, whether babies grow to live happy lives with families or not,” she said.

A Turing spokesman, Craig Rothenberg, said the company is working with hospitals and providers to get every patient covered. This includes free-of-charge options for uninsured patients and co-pay assistance programs.

Rothenberg defended Daraprim's price, saying that the company will use the money it makes from sales to further research treatments for toxoplasmosis. They also plan to invest in marketing and education tools to make people more aware of the disease.

“There has been no innovation in dealing with toxoplasmosis,” Rothenberg said. “That has been a long neglect in the patient community.”

Just the facts
09-21-2015, 10:07 AM
Everyone is supposed to have health insurance now, so what's the problem? It's not like people have to pay for this out of pocket. The greedy profit hoarding insurance companies will have to pay it.

shawnw
09-21-2015, 10:43 AM
I guess I need some of your insurance. This does not effect me, but if it did I would have to reach a $2600 family deductible (4 pills) at which point my insurance would only pay 30-50% depending on if it's formulary or not (meaning I'd still have to pay up to $225/pill). I would have to do this until reaching the family maximum out-of-pocket ($6,000 [15 more pills at the partially covered rate and accounting for money spent on deductible]). Even though I work for a large company (15K employees, 4.4B revenue), we moved to a high deductible plan post-ACA. This would still hurt very much, financially.

kelroy55
09-21-2015, 10:50 AM
Everyone is supposed to have health insurance now, so what's the problem? It's not like people have to pay for this out of pocket. The greedy profit hoarding insurance companies will have to pay it.

Would your insurance pay $750 a pill for you?

jerrywall
09-21-2015, 11:11 AM
Would your insurance pay $750 a pill for you?

I've never seen one who wouldn't cover it if you have prescription coverage (although, they pay a negotiated reduced rate).

I figure these type of increases are in response to increased coverage and demand.

Urbanized
09-21-2015, 04:11 PM
Just like the rest of the mob in the media and on social media, I was ready to carry a torch and pitchfork on this one, but then I watched this Bloomberg interview with the CEO of Turing Pharmaceuticals, the company that just acquired the drug and made this decision:

Drug Goes From $13.50 to $750 Overnight - Bloomberg Business (http://www.bloomberg.com/news/videos/2015-09-21/why-turing-increased-price-of-daraprim-over-500-)

HangryHippo
09-21-2015, 04:44 PM
I've never seen one who wouldn't cover it if you have prescription coverage (although, they pay a negotiated reduced rate).

I figure these type of increases are in response to increased coverage and demand.

You haven't seen enough then. I'm aware of several cases where insurance hasn't covered the cost of pills for patients and there was no negotiated/reduced rate. It happens more than you think purely due to cost.

Snowman
09-21-2015, 04:53 PM
How can they have exclusive rights since 1953? Any patents they could have had on it would have expired at the latest 1973. I could see there would be little interest in others rushing to produce a generic pill but at that kind of markup someone else will be willing to produce it.

kelroy55
09-22-2015, 08:54 AM
I've never seen one who wouldn't cover it if you have prescription coverage (although, they pay a negotiated reduced rate).

I figure these type of increases are in response to increased coverage and demand.

You've never seen an insurance company that wouldn't pay $750 a pill?

FighttheGoodFight
09-22-2015, 09:32 AM
From what I understand it only targets a very specific condition 90 cases a year. The reason it isn't a generic is the case rate is so low. I imagine the shareholders wanted to raise it but didn't know it would be so public. It will settle down and they will lower it to 2x the cost of the original and move on.

Welcome to pharm patents.

kelroy55
09-22-2015, 09:55 AM
When Turing Pharmaceuticals bought the 62-year-old drug called Daraprim in August, the company immediately raised the price of one pill from $13.50 to $750. The increase drew protests in the medical community from those concerned that many patients will no longer be able to afford the drug. According to Turing CEO Martin Shkreli, however, the move is simply a smart business decision.

"Why was it necessary to raise the price of Daraprim so drastically?" CBS News correspondent Don Dahler asked Shkreli.

"Well, it depends on how you define so drastically. 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," Shkreli responded.

Daraprim was developed in 1953 as a treatment for toxoplasmosis, an infection caused by a parasite. It comes from eating under-cooked meat or drinking contaminated water, and affects those with compromised immune systems, like AIDS and cancer patients.

When Turing Pharmaceuticals raised the price of Daraprim to $750 per tablet, the average cost of treatment for patients rose from about $1,130 to $63,000. For certain patients, the cost can go as high as $634,000.



Yeah, insurance will not have a problem covering that change. :rolleyes:

jerrywall
09-22-2015, 10:30 AM
You've never seen an insurance company that wouldn't pay $750 a pill?

Nope. Both my wife and my son are on some pretty expensive chronic pills, and we have pretty basic insurance, and have had no problems. Now we have three tiers, and depending on the medication, the cost goes from $15-$90 per refill.

I imagine they negotiate better rates with the pharm.

jerrywall
09-22-2015, 10:34 AM
Just like the rest of the mob in the media and on social media, I was ready to carry a torch and pitchfork on this one, but then I watched this Bloomberg interview with the CEO of Turing Pharmaceuticals, the company that just acquired the drug and made this decision:

Drug Goes From $13.50 to $750 Overnight - Bloomberg Business (http://www.bloomberg.com/news/videos/2015-09-21/why-turing-increased-price-of-daraprim-over-500-)

What, you mean get the facts before pulling out the torches and pitchforks?

adaniel
09-22-2015, 12:17 PM
Just like the rest of the mob in the media and on social media, I was ready to carry a torch and pitchfork on this one, but then I watched this Bloomberg interview with the CEO of Turing Pharmaceuticals, the company that just acquired the drug and made this decision:

Drug Goes From $13.50 to $750 Overnight - Bloomberg Business (http://www.bloomberg.com/news/videos/2015-09-21/why-turing-increased-price-of-daraprim-over-500-)

Sorry, but nothing in that video has changed my opinion here. And most of his talking points are bogus.

If he is indeed trying to raise the price to fund R&D, than he is a lousy businessman. Almost all new pharma R&D money is raised through the venture capital market, which is quite vigorous for biotech companies right now. Even a ridiculous 5000% increase in price would no be enough to fund the tens of millions for new research, given what a low volume drug this is.

It should be pointed out that the drug makes $1 to make per pill and for the longest was sold at cost. It then went up to $13.50/pill. Nobody should penalize a company for trying to make money. But there is plenty of profit being made here and the fact that he could not cite any specific numbers tells me his "losing money" tripe is fiction.

And Martin Shkreli is doing himself no favors by being an asshat in the media. Like, its one thing to being a Wall Street bro/douchenozzle when you are shorting against people's mortgages; its quite another to do the same with something that is a matter of life or death. Ironically, all of this is probably going to cause federal oversight to surge.

ljbab728
09-22-2015, 08:50 PM
Whoops, never mind.

Daraprim: Turing to Cut Drug Price After Backlash (http://time.com/4045668/daraprim-price-cut/)

A pharmaceuticals company that raised the price of a drug 5,500% practically overnight says it will now lower its price following intense backlash.

Turing Pharmaceuticals founder Martin Shkreli confirmed the price cut to NBC News on Tuesday but did not say how much the company would reduce the cost of Daraprim.

FighttheGoodFight
09-23-2015, 08:16 AM
Whoops, never mind.

Daraprim: Turing to Cut Drug Price After Backlash (http://time.com/4045668/daraprim-price-cut/)

Yep exactly what I thought. Now it will be 2x the original price and they make more money and everyone forgets about it. Well Played Turing Pharm. Well Played.

MitchellCole
09-25-2015, 09:59 AM
You people do realize that even when health insurers pick up the tab, your premiums increase, right? Health Insurance companies are not the evil ones. Health Insurance companies aren't the ones charging $10 for an aspirin.

jerrywall
09-25-2015, 10:14 AM
You people do realize that even when health insurers pick up the tab, your premiums increase, right? Health Insurance companies are not the evil ones. Health Insurance companies aren't the ones charging $10 for an aspirin.

No, that's the hospital. And they charge $10 for the aspirin because they know that the insurance will only pay a percentage of the billed amount, and many folks will never pay their co-pay. Tell the hospital you're not insured and you're paying cash, and it's funny how quick the bill lowers.

Jersey Boss
09-25-2015, 10:15 AM
You people do realize that even when health insurers pick up the tab, your premiums increase, right? Health Insurance companies are not the evil ones. Health Insurance companies aren't the ones charging $10 for an aspirin.

But they are the ones who monopolize markets.

hoya
09-25-2015, 10:31 AM
This might, long-term, be a good thing. Not because of the company's actions, but what happens because of it.

Doing some reading on this, the CEO of this company is a 32 year old who seems like the world's biggest douchebag. He gets into arguments on Twitter with people, calls reporters "morons", and apparently engaged in a pattern of stalking against an ex-employee last year where he stole the guy's e-mail and Facebook passwords and changed his account information. He bumps up the cost of a drug that used to cost a dollar a pill and cranks it up to $750 a pill. The guy is a completely unlikable a-hole. This might prompt legislative action to prevent prescription drug price gouging.

MitchellCole
09-25-2015, 12:55 PM
This might, long-term, be a good thing. Not because of the company's actions, but what happens because of it.

Doing some reading on this, the CEO of this company is a 32 year old who seems like the world's biggest douchebag. He gets into arguments on Twitter with people, calls reporters "morons", and apparently engaged in a pattern of stalking against an ex-employee last year where he stole the guy's e-mail and Facebook passwords and changed his account information. He bumps up the cost of a drug that used to cost a dollar a pill and cranks it up to $750 a pill. The guy is a completely unlikable a-hole. This might prompt legislative action to prevent prescription drug price gouging.

T-Mobile's CEO fights people on Twitter too. We have 5 year olds running things now.

David
09-25-2015, 01:02 PM
T-Mobile's CEO fights people on Twitter too. We have 5 year olds running things now.

Yeah, but the T-Mobile guy isn't simultaneously increasing the cost of my cell phone plan by 5,000%.

(If anything T-Mobile is doing the opposite, soooo much better service than my old Sprint plan and it keeps getting.)

kelroy55
10-01-2015, 07:34 AM
http://images.dailykos.com/images/167483/large/bo150929.png?1443624558

adaniel
12-17-2015, 08:53 AM
Life sure can come at you fast......

Martin Shkreli Arrested on Securities Fraud Charges (http://www.bloomberg.com/features/2015-martin-shkreli-securities-fraud/)

hoya
12-17-2015, 10:13 PM
Not surprised at all. If you're going to revel in being a colossal douchebag, so much so that everyone in the country hates you, people are going to look into your past. It wouldn't shock me at all if some federal prosecutor said "let's see if we can charge this bastard with something".

Mel
12-17-2015, 10:34 PM
Another cockroach squashed. Sad indeed.