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tkdguy

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You laugh, but I became a much less unhappy person when I consciously, and drastically, lowered my expectations for people in general.  Of course that guy cut me off in traffic, he's a human, and humans are little better than hairless chimps.  Of course that man is racist, he is trapped in a bubble of prejudice and propaganda that only logic and critical thinking could break him out of, and few people are so equipped.

 

It is as though I'm one of a small number of sapient beings, living among a population of animals that have yet to be Uplifted, and I set expectations accordingly.

I don't recall laughing.

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“My wife and I are celebrating 34 years of marriage,” he says. “Al and Tipper Gore cannot say the same thing. None of my children have been busted for possession. Al Gore’s son was busted for possession. And am I bragging? Yes, I am. I didn’t throw stones at their glass house. They were throwing them at mine.”

-Dee Snider

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I saw this elsewhere. It is just obscene.

 

He seems to be the kind of guy for whom it's all good as long as he makes money. A real vulture capitalist. You'll look in vain for any sort of moral compass.

It's possible, because vulture capitalists like this guy have worked out that many niche medical products are natural monopolies, with only one supplier. This deal has hit the headlines, because of the 5000% increase .... but it's actually worse than that; because the company he bought the drug from, jacked the price from 1 USD per pill to 13.50, before he jacked it to 750 USD. So that's actually a 75000% increase in 6 years.

 

And this is not an isolated case: I know of at least 5 others of the same kind in the last few months and I have not even been keeping paticularly close count - I am sure there are more.

 

It happens because the barrier to entry for drug production is high, and for niche products like this, there is often only one producer. You need high quality requirements because if something goes wrong, you can end up with a lot of poisoned people. But that means the need to demonstrate safety requires millions of dollars invested and potentially years before you get approval. For niche products like this one, that's enough to stop competitors moving in to compete and drop the price. So it becomes a question of "Pay what we ask or go without and die."

 

 

Didn't he get fired for Share Related shenanigans recently?

 

Yup. He apparently used company funds to try and pay off investors he had fleeced when his hedge fund went under. A 65 million dollar lawsuit by his former employer is underway.

 

cheers, Mark

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So, article said "When asked on Bloomberg TV this morning why Turing had raised the price of Daraprim by 5,000%, Shkreli replied, 'We needed to turn a profit on the drug.'"

 

Did it used to be one of those drugs that companies compassionately sell at below cost so people could afford it? And he just escalated it to what it should cost?  I assume cost of production data is proprietary and not shared with the public.

 

Or maybe he's just devoid of compassion. I'd have to see the numbers.

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So, article said "When asked on Bloomberg TV this morning why Turing had raised the price of Daraprim by 5,000%, Shkreli replied, 'We needed to turn a profit on the drug.'"

 

Did it used to be one of those drugs that companies compassionately sell at below cost so people could afford it? And he just escalated it to what it should cost?  I assume cost of production data is proprietary and not shared with the public.

 

Or maybe he's just devoid of compassion. I'd have to see the numbers.

I'm familiar with the drug. It's an old antibiotic, decades off patent and as far as I know, has never been on tiered pricing (that's the deal where rich countries pay more to subsidise access for the poorest countries). The manufacturing price is confidential, but based on the cost of similar drugs, I'd expect it to be a bit less than a dollar per pill. These days it's only used for special, difficult-to-treat cases, because it has a high frequency of side effects, but it still has medical value because it's effective in a few cases where other antibiotics fail. It was available a few years ago at a low price because the original manufacturer was only producing it since there was no other source. They weren't making any money off it, just keeping it on the market for the patients who needed it. There's a fair number of legacy drugs like that around.

 

So, no, there's nothing to suggest the new price reflects anything other than a desire to gouge customers who don't have an alternative. That opinion is backed by the fact that this guy has form. He started a company called Retrophin, whose business was based around buying up a niche drug with only one supplier and jacking up the price - only 2000% in that case. It made him pretty rich, but he was fired from there amid claims of embezzlement and insider trading in the company stock. Prior to that, he ran a hedge fund, which made him a lot of money, but went bankrupt, amid .... you guessed it, claims of embezzlement and insider trading.

 

Technically speaking, what he is doing is not illegal. But you can gauge his degree of compassion by his response to the claim that some people would die because the price rise would price the drug out of reach. He responded by tweeting "Ain't my problem".

 

Cheers, Mark

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I'm confused, if it's an "old antibiotic, decades off patent" couldn't any company make it?  I mean, that doesn't make this guy any less of a dick, but if the patent has lapsed I'm not seeing how he supposedly has some kind of monopoly...

 

Even creating a generic 'copy' of an off-patent drug has a huge entry cost in terms of tooling up, testing, and certification.  It takes years and it might not be profitable to do so at all if the sale price is too low. 

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