When the news broke that Turing Pharmaceuticals, a small drug company, was going to hike the price of an old drug by more than 5,000%, the outrage was immediate and virtually universal. The company's CEO, Martin Shkreli, managed to quickly become the most hated man in America, or at least in the running for that title.
Now, Turing has announced that the price for Daraprim will not be $750 per pill. "We've agreed to lower the price of Daraprim to a point that is more affordable and is able to allow the company to make a profit, but a very small profit, and we think these changes will be welcome," Shkreli told ABC World News Tonight. The final cost has still not been announced.
Daraprim was priced at $13.50 per pill until Turing Pharmaceuticals acquired the right to market it. In recent years, the price was $1 a pill. Daraprim is used to treat toxoplasmosis, a parasitic infection that can affect AIDS patients and those with a compromised immune system. The drug is often taken for several months.
How outrageous was this price hike? Even in a business that has seen drug prices go up by a couple of hundred percent in a year and where new drugs may cost $100,000 per year, this increase was considered to be out of line. Shkreli compounded the problem by comments in social media and in interviews that were brash and totally unapologetic. Even earlier this week he was refusing to back down on the price for Daraprim.
The story sparked a lot of heat from patients, disease advocacy groups, and medical societies. Presidential candidates got into the act. Hillary Clinton outlined a proposal to cap skyrocketing prescription drug costs for consumers.
Even the pharmaceutical industry trade group, the Pharmceutical Research and Manufacturers of America (PhRMA) has distanced itself from Turing and Shkreli. It posted a message on Twitter that Turing "does not represent the values of PhRMA member companies."
"PhRMA members have a long history of drug discovery and innovation that has led to increased longevity and improved lives for millions of patients," the organization said in a statement. "Turing Pharmaceutical is not a member of PhRMA and we do not embrace either their recent actions or the conduct of their CEO."