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How companies buy back old drugs and inflate their prices
New York Times News: Drug Goes From $13.50 a Tablet to $750, OvernightSpecialists in infectious diseases are outraged by the sharp and gigantic rise in prices for a drug produced for many decades, which is a standard treatment for toxoplasmosis.
Daraprim (pyrimethamine) has been produced since the 1950s and has been used against malaria and toxoplasmosis. In August, the rights to it were bought by Turing Pharmaceuticals, a medical startup headed by a former hedge fund manager. Turing immediately raised the price of Daraprim from $13.5 to $750 per tablet (and a few years ago, with the owners before last, the price of the tablet was only $1). For some patients, this means hundreds of thousands of dollars annually. According to Dr. Judith Aberg, head of the infectious diseases unit at the Icahn School of Medicine at Mount Sinai, the rise in prices may lead to hospitals starting to use alternative less effective but more affordable drugs.
This story is not the only example. Although the prices of innovative medicines for diseases such as cancer or hepatitis C are mainly attracting attention, there is also growing concern about the huge increase in prices for old medicines, which have long been the standard of therapy for easier-to-treat diseases. In some cases, this is the result of a business strategy of buying old drugs and turning them into expensive "special medicines".
For example, "Cycloserine" – a drug for tuberculosis – recently, after its purchase by Rodelis Therapeutics, has risen in price from $ 500 per package (No. 30) immediately to $ 10,800. Valeant Pharmaceuticals bought two heart drugs "Izuprel" (izadrin) and Nitropress (nitroprusside), and soon raised prices by 525% and 212%, respectively. The antibiotic doxycycline went up from $20 in October 2013 to $1,849 in April 2014.
In the case of Daraprim, the main consumers are HIV–infected (toxoplasmosis is dangerous for pregnant women without antibodies to it, as well as for those whose immune system is severely weakened - HIV–infected and some cancer patients). The American Society for the Study of Infectious Diseases (The Infectious Diseases Society of America) and the HIV Medical Association sent Turing a joint letter calling the price increase for Daraprim "inexcusable in relation to medically vulnerable patients" and "an unbearable burden on the health care system."
Founder and Head of Tuirng Martin ShkreliHe stated in response that the drug is used so rarely that the impact on the healthcare system will be minimal, and also that Turing uses the proceeds to develop improved drugs for toxoplasmosis with fewer side effects. "This is not a story of a greedy company trying to warm up on patients. This is our attempt to stay in business," Shkreli said. He believes that now the price of the medicine corresponds to the prices for other medicines for rare diseases.
The 32-year-old Shkreli has a peculiar reputation. He was the head of a hedge fund company and attracted attention by trying to influence the FDA in making decisions on drug approval in the interests of the stock exchange. In 2011, Shkreli founded Retrophin, which was engaged in the acquisition of old drugs and inflating prices for them. A year ago, the board of directors fired Shkreli, and in August filed a lawsuit accusing the ex-head of using Retrophin as a personal bank to pay debts to his investors.
Shkreli denies his guilt and also filed a lawsuit – arbitration – claiming that the company owes him at least $25 million.
The increase in prices for Daraprim, while maintaining demand, can reach tens or even hundreds of dollars annually. In 2014, after previous price increases, sales already amounted to $9.9 million.
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22.09.2015