# 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:** 8
**Author:** ![Snowboarder\_Bo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/snowboarder_bo/32/229_2.png) [@Snowboarder\_Bo](https://boards.straightdope.com/u/Snowboarder_Bo)\ **Post date:** [September 30, 2015, 5:17pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/141 "2015-09-30T17:17:30Z")
> [@Smapti](#): > > He says he knows he’s an a-hole, but that he’s not - and I’m quoting him here - ‘one hundred percent a dick’. Well played, **Smapti** ; well played. ---
**Author:** ![McDoogins](https://avatars.discourse-cdn.com/v4/letter/m/6a8cbe/32.png) [@McDoogins](https://boards.straightdope.com/u/McDoogins)\ **Post date:** [September 30, 2015, 7:03pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/142 "2015-09-30T19:03:23Z")
I know I’m not saying anything new here, but this person is disgusting. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [September 30, 2015, 7:16pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/143 "2015-09-30T19:16:39Z")
> [@bizzwire](#): > > Neither Salk nor Sabin patented their vaccines. [Interesting article on how much money they would have made had they done so](http://www.forbes.com/sites/quora/2012/08/09/how-much-money-did-jonas-salk-potentially-forfeit-by-not-patenting-the-polio-vaccine/) Yeah, you got whooshed. I thought about mentioning the facts when the original post was made, but decided against it. There is an argument for higher drug prices to pay for R&D - but that’s not applicable here, since as I understand it the asshole’s company doesn’t do any R&D. ---
**Author:** ![silenus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/silenus/32/166_2.png) [@silenus](https://boards.straightdope.com/u/silenus)\ **Post date:** [September 30, 2015, 7:30pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/144 "2015-09-30T19:30:10Z")
If there ever was a perfect time to try out the classic “He needed killing” defense, plugging this guy would be it. ---
**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\ **Post date:** [October 5, 2015, 1:34pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/145 "2015-10-05T13:34:47Z")
The guy has opened up an opportunity for another drug manufacturer-competition will prevent this guy from maintaining his $5000/dose price. A small house could start making the drug and drive him out of business. ---
**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\ **Post date:** [October 5, 2015, 2:20pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/146 "2015-10-05T14:20:26Z")
> [@ralph124c](#): > > The guy has opened up an opportunity for another drug manufacturer-competition will prevent this guy from maintaining his $5000/dose price. A small house could start making the drug and drive him out of business. It’ll take three years and many moneys, and then the price will crash. I’m not sure who would make that investment. ---
**Author:** ![Grim\_Render](https://avatars.discourse-cdn.com/v4/letter/g/a87d85/32.png) [@Grim\_Render](https://boards.straightdope.com/u/Grim_Render)\ **Post date:** [October 5, 2015, 7:17pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/147 "2015-10-05T19:17:27Z")
> [@iamthewalrus\_3](#): > > I don’t think anyone is arguing that we’ll have no new drugs. > > Lots of people are arguing that the rate of new drugs will decrease. And I think that’s reasonably well supported by the data. > > The US accounts for 49% of the global pharma R&D budget. The UK accounts for 9%. Normalized for population size, that’s pretty close, though the US is spending about 10% more per person. > > But if you look at where those companies make their money… > > GSK is the biggest UK pharma company. In 2014, they earned more than twice as much revenue in the US than in Europe as a whole, and Europe has twice as many people living there. > > So if the US started restricting drug prices the way that most European countries do, I think it’s safe to say that pharma revenue would drop significantly, which would lead to available R&D dropping as well. > > Less R&D means fewer new drugs. Not none, certainly. Just fewer. And maybe that’s a tradeoff that we are willing to make for lower costs now. But it is a tradeoff. I don’t really think the data supports that. First off, there are a number of industries out there where research is cost-intensive, and none of them seems to demand human sacrifice to keep research going. Second, the pharmas actually spend more on marketing drugs in the US than developing them. It seems reasonable that if drugs were treated in the European fashion, the now-useless marketing budgets would be cut, not the still-profitable research. Third, the pharmas develop drugs they think will sell. If they aren’t allowed to make a profit of 700 per pill in the US market, will they stop selling it at a profit of 1 per pill in the rest o the world, just out of spite? When pharmas negotiate with governments in other developed countries about what price to sell drugs at, they don’t end up with a price that they lose money on. Fourth, the biggest single research funder in the world in the US government through the NIH, which does not sell any drugs. Fifth, while the US does spend more money per person on research, the US spends more money per person on everything involving health, and there are no signs of proportionally improved performance elsewhere. The US seems good at refining other breakthroughs into something marketable or practical, but I don’t really remember any of the epoch-making breakthroughs coming from US pharmas. In short, I don’t think that the leap from “Pharmas make less moneny in the US” to “Pharmas spend less money on research” holds. ---
**Author:** ![Drunky\_Smurf](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/drunky_smurf/32/449_2.png) [@Drunky\_Smurf](https://boards.straightdope.com/u/Drunky_Smurf)\ **Post date:** [October 5, 2015, 7:32pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/148 "2015-10-05T19:32:15Z")
> [@Snowboarder\_Bo](#): > > Well played, **Smapti** ; well played. Agreed, I went down to the quarry and threw stuff in. 'd ---
**Author:** ![bup](https://avatars.discourse-cdn.com/v4/letter/b/6bbea6/32.png) [@bup](https://boards.straightdope.com/u/bup)\ **Post date:** [October 5, 2015, 7:43pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/149 "2015-10-05T19:43:45Z")
So, has Shkreli actually lowered the price like he said? ---
**Author:** ![lazybratsche](https://avatars.discourse-cdn.com/v4/letter/l/ba8739/32.png) [@lazybratsche](https://boards.straightdope.com/u/lazybratsche)\ **Post date:** [October 5, 2015, 8:03pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/150 "2015-10-05T20:03:24Z")
> [@Ruken](#): > > It’ll take three years and many moneys, and then the price will crash. I’m not sure who would make that investment. It’ll be interesting to see. I wouldn’t be surprised if a foreign pharmaceutical that currently sells pyrimethamine will try to put in an ANDA application. Someone who can already manufacture the stuff in large quantities may only have to fill out a bunch of documents showing that they meet FDA standards, and do one quick round of bio-equivalence testing. And maybe, with the current political furor, the FDA will bump that application to the front of the line. The reward wouldn’t be worth much on its own, but it would also come with a ton of positive publicity and goodwill. Might be a good way for, say, a major Indian pharmaceutical to get their foot in the door in the US market. ---
**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:** [October 23, 2015, 4:07am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/151 "2015-10-23T04:07:35Z")
It looks lik Shkreli just got screwed. [http://www.addictinginfo.org/2015/10/22/pharma-bro-about-to-lose-his-shirt-as-rival-makes-1-alternative-to-his-750-ripoff/](http://www.addictinginfo.org/2015/10/22/pharma-bro-about-to-lose-his-shirt-as-rival-makes-1-alternative-to-his-750-ripoff/) > [@](#): > > Last month, Turing Pharmaceuticals LLC, the sole supplier of Daraprim,increased the price of this prescription drug from $13.50 per tablet to a reported $750.00 per tablet. The FDA-approved label for Daraprim indicates that it is prescribed for toxoplasmosis and other types of infections. Toxoplasmosis can be of major concern for patients with weakened immune systems such as patients with HIV/AIDS, pregnant women and children. According to the Centers for Disease Control and Prevention, pyrimethamine works to block folic acid synthesis in the parasite T. gondii, the cause of toxoplasmosis, and leucovorin helps to reverse the negative effects on bone marrow caused by this mechanism of action. > > Imprimis is now offering customizable compounded formulations of pyrimethamine and leucovorin in oral capsules starting as low as $99.00 for a 100 count bottle, or at a cost of under a dollar per capsule. Compounded medications may be appropriate for prescription when a commercially-available medicine does not meet the specific needs of a patient. For ordering information, please visit [www.imprimiscares.com](http://www.imprimiscares.com). A Google search tells me that pyrimethamine (the generic name for Daraprim) is usually prescribed in combination with leucovorin (in order to prevent side effects of pyrimethamine), so it apparently makes sense medically to compound them in one capsule. I’m guessing that by compounding it like this, they’re using some loophole that will allow them to market pyrimethamine in spite of whatever special rights Shkreli might have. ---
**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:** [October 23, 2015, 4:20am UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/152 "2015-10-23T04:20:55Z")
Okay, this really makes me laugh. [http://gawker.com/did-dirtbag-pill-bro-martin-shkreli-photoshop-an-x-ray-1737268060](http://gawker.com/did-dirtbag-pill-bro-martin-shkreli-photoshop-an-x-ray-1737268060) > [@](#): > > Widely despised pill price-gouging miscreant Martin Shkreli is mad at Bernie Sanders. So mad, in fact, that he could—and ostensibly did—“punch a wall.” Martin Shkreli claims to have punched this wall so hard that not only did he fracture his wrist, but there was even “one bone sticking out.” > > Why then, with all this damage, does Shkreli appear to have photoshopped his name onto an already-existing x-ray that he then tweeted out? And was it all, as he claimed the minute he got caught, actually just one, very poorly executed troll? ---
**Author:** ![bup](https://avatars.discourse-cdn.com/v4/letter/b/6bbea6/32.png) [@bup](https://boards.straightdope.com/u/bup)\ **Post date:** [October 23, 2015, 3:49pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/153 "2015-10-23T15:49:17Z")
> [@davidm](#): > > It looks lik Shkreli just got screwed. > [http://www.addictinginfo.org/2015/10/22/pharma-bro-about-to-lose-his-shirt-as-rival-makes-1-alternative-to-his-750-ripoff/](http://www.addictinginfo.org/2015/10/22/pharma-bro-about-to-lose-his-shirt-as-rival-makes-1-alternative-to-his-750-ripoff/) > [@](#): > > While Shkreli has said he would lower the price, he hasn’t. Called it! ---
**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:** [October 23, 2015, 4:17pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/154 "2015-10-23T16:17:35Z")
He’ll have to lower it now, substantially, if he wants to sell any. ---
**Author:** ![Smapti](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smapti/32/17938_2.png) [@Smapti](https://boards.straightdope.com/u/Smapti)\ **Post date:** [November 25, 2015, 8:48pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/155 "2015-11-25T20:48:40Z")
> [@bup](#): > > So, has Shkreli actually lowered the price like he said? He has now. Instead of charging 5000% of the former price, he’s now decided to sell it for… (drumroll) …[2500% of the former price.](http://www.cbsnews.com/news/turing-pharmaceuticals-rolls-back-5000-drug-price-increase/) ---
**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:** [November 26, 2015, 7:04pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/156 "2015-11-26T19:04:37Z")
> [@Smapti](#): > > He has now. Instead of charging 5000% of the former price, he’s now decided to sell it for… > > (drumroll) > > …[2500% of the former price.](http://www.cbsnews.com/news/turing-pharmaceuticals-rolls-back-5000-drug-price-increase/) How does he think he can compete with Imprimis’ $0.99 a capsule? ---
**Author:** ![not\_what\_you\_d\_expect](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/not_what_you_d_expect/32/3246_2.png) [@not\_what\_you\_d\_expect](https://boards.straightdope.com/u/not_what_you_d_expect)\ **Post date:** [December 17, 2015, 1:53pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/157 "2015-12-17T13:53:58Z")
> **[Pharma boss Martin Shkreli arrested on fraud charges](https://www.bbc.com/news/business-35120668)** > > Pharmaceutical boss Martin Shkreli, who sparked outrage after hiking the price of a medicine used by Aids patients, strongly denies fraud charges. He’s been arrested on fraud charges. ---
**Author:** ![VinylTurnip](https://avatars.discourse-cdn.com/v4/letter/v/b2d939/32.png) [@VinylTurnip](https://boards.straightdope.com/u/VinylTurnip)\ **Post date:** [December 17, 2015, 2:40pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/158 "2015-12-17T14:40:10Z")
It’s a Christmas miracle! ---
**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:** [December 17, 2015, 4:24pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/159 "2015-12-17T16:24:48Z")
> [@not\_what\_you\_d\_expect](#): > > [Pharma boss Martin Shkreli arrested on fraud charges - BBC News](http://www.bbc.com/news/business-35120668) > > He’s been arrested on fraud charges. My first thought was that his drug pricing noteriety led them to go looking for something that they could prosecute him for, but according to the article their investigation goes back at least as far as January, so he was in potential trouble even before Daraprim. I think this paragraph explains things: > [@](#): > > He was arrested in Manhattan, New York, accused of illegally using Retrophin assets to pay off debts after MSMB lost millions of dollars, reports Reuters news agency. I’m guessing that he wanted to make a killing on Daraprim in order to replace those assets and maybe escape a lawsuit or criminal charges. ---
**Author:** ![septimus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/septimus/32/410_2.png) [@septimus](https://boards.straightdope.com/u/septimus)\ **Post date:** [December 17, 2015, 7:26pm UTC](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144/160 "2015-12-17T19:26:31Z")
In one sense this is bad news. Martin Shkreli was a poster-boy for the theme: _ **America’s unfettered dog-eat-dog capitalism is bad** _. Now the defenders of dog-eat-dog will be able to say “No, Shkreli is a criminal; he’s just an aberration.” [Previous page](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144.md?page=7) [Next page](https://boards.straightdope.com/t/hedge-fund-manager-buys-rights-to-critical-drug-hikes-price-by-5000/732144.md?page=9)