# Hedge Fund Manager Buys Rights To Critical Drug, Hikes Price By 5000% **URL:** \ **Category:** In My Humble Opinion\ **Created:** [September 21, 2015, 8:02pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144 "2015-09-21T20:02:28Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![LonghornDave](https://avatars.discourse-cdn.com/v4/letter/l/a87d85/32.png) [@LonghornDave](https://boards.straightdope.com/u/LonghornDave)\ **Post date:** [September 22, 2015, 9:12pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/41 "2015-09-22T21:12:41Z")
> [@septimus](#): > > Have the Board’s Hyperlibertarians weighed in? Market principles in action at their Godliest? How in the world is this an example of failed capitalism or libertarianism? If anything, this is an example of unintended side effects of government regulation. ---
**Author:** ![YogSothoth](https://avatars.discourse-cdn.com/v4/letter/y/8edcca/32.png) [@YogSothoth](https://boards.straightdope.com/u/YogSothoth)\ **Post date:** [September 22, 2015, 10:31pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/42 "2015-09-22T22:31:45Z")
> [@LonghornDave](#): > > How in the world is this an example of failed capitalism or libertarianism? If anything, this is an example of unintended side effects of government regulation. Of course, blame everything on something you already agree is the problem. How about a new regulation: Government negotiates in bulk the prices of all drugs? ---
**Author:** ![Stringbean](https://avatars.discourse-cdn.com/v4/letter/s/d6d6ee/32.png) [@Stringbean](https://boards.straightdope.com/u/Stringbean)\ **Post date:** [September 22, 2015, 10:47pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/43 "2015-09-22T22:47:25Z")
> [@septimus](#): > > Have the Board’s Hyperlibertarians weighed in? Market principles in action at their Godliest? Well, the public backlash will dictate that the free market has more power than the heavy hand of government. Yet, this guy is among the scummiest shit-bags I have ever seen try to sell evil with a giddy grin. Fuck him. ---
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [September 22, 2015, 10:58pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/44 "2015-09-22T22:58:21Z")
> [@Smapti](#): > > Another pharmaceutical company which was only so bold as to increase the price of its newly-acquired tuberculosis medicine by a mere 2000% [has decided to annul the purchase](http://thinkprogress.org/health/2015/09/22/3704183/drug-company-gives-back-rights/) in light of the recent attention brought to the issue. $500 for 30 capsules of cycloserine is outrageous anyway. :mad: ---
**Author:** ![msmith537](https://avatars.discourse-cdn.com/v4/letter/m/d9b06d/32.png) [@msmith537](https://boards.straightdope.com/u/msmith537)\ **Post date:** [September 23, 2015, 12:44am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/45 "2015-09-23T00:44:34Z")
I’ll have to see if I can find the link, but based on his tweets, this guy seems like a major A-hole even if he didn’t do this. > [@Shodan](#): > > Yes, it sucks when someone wants me to pay more than I want to. Sort of like the fire department jacking up the price of putting out your house fire? > **[Drug CEO Will Lower Price of Daraprim After Hike Sparked Outrage](https://www.nbcnews.com/news/us-news/drug-ceo-will-lower-price-daraprim-after-outrage-n431926)** > > Martin Shkreli said there were mistakes made in explaining why the drug, which fights toxoplasmosis, had its price increased so dramatically Turns out he will lower the price after all. Probably because he doesn’t want to get dragged out of his home and murdered by angry mobs. ---
**Author:** ![Fubaya](https://avatars.discourse-cdn.com/v4/letter/f/c2a13f/32.png) [@Fubaya](https://boards.straightdope.com/u/Fubaya)\ **Post date:** [September 23, 2015, 1:05am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/46 "2015-09-23T01:05:05Z")
The last company this guy formed fired him and is suing him for $65 million, saying that he bled the company dry to pay off hedge fund people that he defrauded. He looks like a crooked nobody that will be gone soon. Sort of a Wolf of Wall Street scam artist except already on the way down before he could get any pussy. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [September 23, 2015, 1:22am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/47 "2015-09-23T01:22:42Z")
> [@LonghornDave](#): > > How in the world is this an example of failed capitalism or libertarianism? If anything, this is an example of unintended side effects of government regulation. Which rule, exactly, makes government partially to blame for this idiot? Maybe it is the rule against this man’s parents leaving a young, greedy, antisocial monster alone in the woods to let him fend for himself against the elements? ---
**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\ **Post date:** [September 23, 2015, 1:52am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/48 "2015-09-23T01:52:01Z")
Looks like this is an evil villain who can’t handle the pressure. > **[Drug CEO Will Lower Price of Daraprim After Hike Sparked Outrage](https://www.nbcnews.com/news/us-news/drug-ceo-will-lower-price-daraprim-after-outrage-n431926)** > > Martin Shkreli said there were mistakes made in explaining why the drug, which fights toxoplasmosis, had its price increased so dramatically > [@](#): > > The pharmaceutical company boss under fire for increasing the price of the drug Daraprim by more than 5,000 percent said Tuesday he will lower the cost of the life-saving medication. > > Martin Shkreli did not say what the new price would be, but expected a determination to be made over the next few weeks. So now we’ll see what happens. I suspect that “over the next few weeks” means that he’ll wait until the public’s attention has turned to something else and then he’ll quietly lower the price by a dollar or two. ---
**Author:** ![monstro](https://avatars.discourse-cdn.com/v4/letter/m/ba9def/32.png) [@monstro](https://boards.straightdope.com/u/monstro)\ **Post date:** [September 23, 2015, 1:59am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/49 "2015-09-23T01:59:36Z")
That guy has a punchable face. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [September 23, 2015, 2:23am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/50 "2015-09-23T02:23:41Z")
> **[Price-gouging pharma bro under investigation for corporate looting, fraud and...](https://www.rawstory.com/2015/09/price-gouging-pharma-bro-under-investigation-for-corporate-looting-fraud-and-stalking/)** > > This isn't the first time Martin Shkreli, the most hated man on the Internet, has attracted criticism for his unscrupulous business dealings.Shkreli has ignited a firestorm after purchasing the rights to Daraprim, a 62-year-old drug used for treating... ---
**Author:** ![stui\_magpie](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/stui_magpie/32/11010_2.png) [@stui\_magpie](https://boards.straightdope.com/u/stui_magpie)\ **Post date:** [September 23, 2015, 2:45am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/51 "2015-09-23T02:45:51Z")
> [@silenus](#): > > It’d be easier and cheaper to just have the douchebag whacked. More fun too. ---
**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\ **Post date:** [September 23, 2015, 2:52am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/52 "2015-09-23T02:52:59Z")
> [@Ravenman](#): > > Which rule, exactly, makes government partially to blame for this idiot? Maybe it is the rule against this man’s parents leaving a young, greedy, antisocial monster alone in the woods to let him fend for himself against the elements? I can make this drug. But I’m not allowed to sell it. Others already make this drug. And they sell it at a low price. But they’re not allowed to sell it here. ---
**Author:** ![Gotlift](https://avatars.discourse-cdn.com/v4/letter/g/9fc348/32.png) [@Gotlift](https://boards.straightdope.com/u/Gotlift)\ **Post date:** [September 23, 2015, 7:29am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/53 "2015-09-23T07:29:46Z")
This will be addressed by Congress. They wouldn’t let an opportunity to get campaign contributions like this slip by. Congressman: Excuse me, Mr. Asshole pharma crook. What you did was a travesty! My constituents are outraged and I’m going to introduce a bill next session that will make this highly illegal. Mr. Asshole: Oh, that’s terrible, I was just about to write a check to your campaign for $100,000. Congressman: You go ahead and write that check, sir. I’ll make sure the bill never sees the light of day and I’ll vote against any other bill that may get introduced. Fuck my constituents. Have a nice day Master… I mean, sir! ---
**Author:** ![Robot\_Arm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/robot_arm/32/18280_2.png) [@Robot\_Arm](https://boards.straightdope.com/u/Robot_Arm)\ **Post date:** [September 23, 2015, 8:24am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/54 "2015-09-23T08:24:24Z")
> [@Dinsdale](#): > > This seems a pretty blatant example of why - IMO - capitalism does not obtain optimal results in many health care matters. That depends, optimal for whom? ---
**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\ **Post date:** [September 23, 2015, 9:38am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/55 "2015-09-23T09:38:59Z")
> [@Robot\_Arm](#): > > That depends, optimal for whom? That’s the problem isn’t it? “optimal” strikes me as a fuzzy concept, or at least an incomplete one. For Shkreli, this drug is a resource for earning a profit for stockholders, including himself, so “optimal” means “most profitable”. For people with toxoplasmosis, “optimal” has a whole different meaning. ---
**Author:** ![jimbuff314](https://avatars.discourse-cdn.com/v4/letter/j/c57346/32.png) [@jimbuff314](https://boards.straightdope.com/u/jimbuff314)\ **Post date:** [September 23, 2015, 9:52am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/56 "2015-09-23T09:52:35Z")
Yeah. Thank god Teddy died in 2007! (Our white Persian.) ---
**Author:** ![LonghornDave](https://avatars.discourse-cdn.com/v4/letter/l/a87d85/32.png) [@LonghornDave](https://boards.straightdope.com/u/LonghornDave)\ **Post date:** [September 23, 2015, 1:37pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/57 "2015-09-23T13:37:05Z")
> [@Ravenman](#): > > Which rule, exactly, makes government partially to blame for this idiot? Maybe it is the rule against this man’s parents leaving a young, greedy, antisocial monster alone in the woods to let him fend for himself against the elements? [QUOTE=YogSosoth] Of course, blame everything on something you already agree is the problem. How about a new regulation: Government negotiates in bulk the prices of all drugs? [/QUOTE] It seems to me that this is an unintended side effect of certain regulations that have resulted in the lack of a competitive free market. From what I understand, the patents for this drug have expired and yet this guy owns a monopoly it. Our regulatory framework for drugs creates barriers to entry that make it time consuming and expensive for domestic drug manufacturers to compete with this. Further, this drug is produced internationally but yet our regulations forbid competition on that front. We could stop this dead in its tracks if we let an Indian manufacturer that already makes and sells this drug for pennies per pill have access to our market. I’m not saying we should do that, but it would absolutely undercut this guy. I am not saying that our drug regulations serve no purpose nor that they are even not a net positive. I am not anti-regulation. I do think it is crazy to look at this situation where one guy has essentially a government protected monopoly and consider this an example of the evils of the free market. This is the furthest thing from the free market. There are probably plenty of examples where you can blame free market economics for some bad outcome, but I think this is not one of those. ---
**Author:** ![ElvisL1ves](https://avatars.discourse-cdn.com/v4/letter/e/5daacb/32.png) [@ElvisL1ves](https://boards.straightdope.com/u/ElvisL1ves)\ **Post date:** [September 23, 2015, 1:50pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/58 "2015-09-23T13:50:12Z")
I saw him interviewed on CBS News last night - he was actually claiming the price rise was a _humanitarian, altruistic_ gesture, since it would give his company funds to finance future drug research. A smarmier grin you never saw. Made me wanna grab a baseball bat. ---
**Author:** ![Fubaya](https://avatars.discourse-cdn.com/v4/letter/f/c2a13f/32.png) [@Fubaya](https://boards.straightdope.com/u/Fubaya)\ **Post date:** [September 23, 2015, 2:24pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/59 "2015-09-23T14:24:16Z")
I think he’s just trying to get rich quick and pay off his former company and hedge fund investors. The question is, was he trying to do it by making money off the drug or by making politicians get interested in pricing and causing panic in the market so he could short sell other drug company stocks? ---
**Author:** ![Fiveyearlurker](https://avatars.discourse-cdn.com/v4/letter/f/da6949/32.png) [@Fiveyearlurker](https://boards.straightdope.com/u/Fiveyearlurker)\ **Post date:** [September 23, 2015, 4:04pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/60 "2015-09-23T16:04:58Z")
> [@Ruken](#): > > I can make this drug. But I’m not allowed to sell it. Others already make this drug. And they sell it at a low price. But they’re not allowed to sell it here. It’s off patent, and has been for a long time. The molecular structure is public. There is absolutely nothing stopping you, physically or legally, from making [Daraprim](http://www.vox.com/2015/9/22/9373557/daraprim-competitor-turing) yourself and selling it at a loss to help mankind or simply handing it out on an as needed basis. I’m not defending this particular guy, but the rhetoric that drugs should be developed to help mankind even if that means losing lots of money rings false when not a single person is willing to do it. [Previous page](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144.md?page=2) [Next page](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144.md?page=4)