Biotech Industry is Under Pressure

by Marilou Moursund on September 23, 2015

in Healthcare

The biotech and pharma industry is under pressure after a small pharmaceutical company raised the price on a drug it purchased over 5000% overnight. The drug was developed in the 1950s to fight a rare but deadly parasitic infection. From the linked WSJ article:

The drug, Daraprim, had cost $13.50 a tablet before Turing Pharmaceuticals AG bought the U.S. rights in August from Impax Laboratories Inc. and raised the price to $750. The increase became a poster child for high drug prices, which have been attacked by drug-benefit managers and some Democrats.

Over the last few days, privately held Turing and Chief Executive Martin Shkreli have resisted criticism over Daraprim’s price hike, saying the drug had been underpriced and the higher returns would fund research into a new and better treatment.

I think that the CNBC video embedded below is a good discussion of the various issues raised by this controversy.

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