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Meet Martin Shkreli.

This is Shkreli posing under a television playing a Flo Rida music video.

 

$VTL #GDFR pic.twitter.com/FlZu2N68sy

— Martin Shkreli (@MartinShkreli) August 12, 2015

“Well, we needed to turn a profit on this drug,” Shkreli, a former hedge fund manager, said on Monday to the Bloomberg host who asked why his pharmaceutical start up just raised the price of a drug critical to HIV treatments from $13.50 a tablet to $750 overnight.

“But my understanding is that, to actually produce this pill, costs what, only a dollar?” the host asked.

“It costs very little money to make Daraprim,” Shkreli replied, before listing other costs, like the cost of distribution and patient relations, that go into a drug like this.

Shkreli’s company, Turing Pharmaceuticals, bought the rights to Daraprim and immediately hiked the price more than 5,000 percent, The New York Times reported on Monday. Daraprim is considered part of the standard treatment for a potentially life-threatening parasitic infection called toxoplasmosis. It is also used to treat people with compromised immune systems, like AIDS patients.

In his former life as a hedge fund manager, Shkreli was accused of urging the FDA to not approve drugs from companies whose stocks he was shorting. Then he started another company that bought the rights to drugs and then raised their prices. The board of that company is currently suing Shkreli for $65 million, the Times reported.

But Shkreli appears undaunted. The morning the Daraprim news broke, Shkreli tweeted the defiant lyrics to an Eminem song: “And it seems like the media immediately points a finger at me/So I point one back at em, but not the index or pinkie.” He’s been fighting with critics on Twitter since last night.

http://t.co/co6Fmwk3XX
And it seems like the media immediately points a finger at me
So I point one back at em, but not the index or pinkie

— Martin Shkreli (@MartinShkreli) September 21, 2015

 

On Bloomberg on Monday, Shkreli praised the price hike as, basically, absolutely wonderful.

“We’re the first company that really focused on this product. And I think that’s a great thing, because ultimately companies before us were actually just giving it away, almost,” Shkreli continued. “The price that they were pricing it at, $13.50, you only needed less than 100 pills, so at the end of the day the price per course of treatment—to save your life!—was only $1,000.”

His argument, in a nutshell, is that by charging so much more for the drug, Turing can put money into developing newer, better drugs for toxoplasmosis. Daraprim has been on the market for a long time, he argued (it was approved by the FDA in 1953, according to the Times) and patients “deserve” a new drug. They also "deserve a drug company that's making a fair profit," he said.

But organizations that advocate for patients don’t see it that way. The Infectious Diseases Society of America and the HIV Medicine Association called the price hike “unjustifiable” and an expert in infectious diseases told the Times that the medical community isn’t “clamoring for better therapies” that Shkreli insisted are needed.

So what is going on here? It turns out that buying rights to drugs—older, even generic drugs—and raising their price sharply has been something of a business model for American pharmaceutical companies of late. Senator and presidential candidate Bernie Sanders (I-Vt.), along with Rep. Elijah Cummings (D-Md.) have been vocal about the problem, and have sent letters demanding more information from companies that do it. Last week, they sent a letter to a company called Valeant, who allegedly raised the price of a heart drug more than 500 percent the day it bought the rights to it. Last year, the pair went after the company that raised the price of Doxycycline, a common antibiotic, from $20 a bottle in 2013 to $1,849 by 2014.

Sanders and Cummings sent a letter to Turing on Monday, requesting more information from the company, calling the move “just the latest in a long list of skyrocketing price increases for certain critical medications.”

Presidential candidate Hillary Clinton chimed in too, promising she’d have a “plan to take it on” by the following day.

Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on. -H https://t.co/9Z0Aw7aI6h

— Hillary Clinton (@HillaryClinton) September 21, 2015

 

Clinton tweeted about this http://t.co/omo7UJ5wZG then this happened to the Nasdaq Biotech Index, via @ArmstrongDrew pic.twitter.com/MoxowbIuRV

— Phil Mattingly (@Phil_Mattingly) September 21, 2015

Still, Shkreli insists, his company is different from the others, noting larger companies do this, and worse, all the time. “Turing is a very small company, it’s a new company, and we’re not a profitable company. So for us to try to exist and maintain a profit I think is pretty reasonable,” he told CNBC on Monday. “I think profits are a great thing to stay in your corporate existence.”

 

I donated a total of $5,000,000 to various causes recently. Looking forward to telling you all about it.

— Martin Shkreli (@MartinShkreli) September 15, 2015

 

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09_21_AidsMeds_01
Medicines for HIV-positive patents are seen at a Doctors without Borders clinic in Yangon, February 21, 2012. HIV and AIDS patients often rely on a cocktail of drugs each day, often at great cost. Recently one of the cheaper drugs saw a mark up of 5000% after a former hedge fund manager acquired the rights to sell it.Soe Zeya Tun/Reuters
[a_content] =>

Meet Martin Shkreli.

This is Shkreli posing under a television playing a Flo Rida music video.

 

$VTL #GDFR pic.twitter.com/FlZu2N68sy

— Martin Shkreli (@MartinShkreli) August 12, 2015

“Well, we needed to turn a profit on this drug,” Shkreli, a former hedge fund manager, said on Monday to the Bloomberg host who asked why his pharmaceutical start up just raised the price of a drug critical to HIV treatments from $13.50 a tablet to $750 overnight.

“But my understanding is that, to actually produce this pill, costs what, only a dollar?” the host asked.

“It costs very little money to make Daraprim,” Shkreli replied, before listing other costs, like the cost of distribution and patient relations, that go into a drug like this.

Shkreli’s company, Turing Pharmaceuticals, bought the rights to Daraprim and immediately hiked the price more than 5,000 percent, The New York Times reported on Monday. Daraprim is considered part of the standard treatment for a potentially life-threatening parasitic infection called toxoplasmosis. It is also used to treat people with compromised immune systems, like AIDS patients.

In his former life as a hedge fund manager, Shkreli was accused of urging the FDA to not approve drugs from companies whose stocks he was shorting. Then he started another company that bought the rights to drugs and then raised their prices. The board of that company is currently suing Shkreli for $65 million, the Times reported.

But Shkreli appears undaunted. The morning the Daraprim news broke, Shkreli tweeted the defiant lyrics to an Eminem song: “And it seems like the media immediately points a finger at me/So I point one back at em, but not the index or pinkie.” He’s been fighting with critics on Twitter since last night.

http://t.co/co6Fmwk3XX
And it seems like the media immediately points a finger at me
So I point one back at em, but not the index or pinkie

— Martin Shkreli (@MartinShkreli) September 21, 2015

 

On Bloomberg on Monday, Shkreli praised the price hike as, basically, absolutely wonderful.

“We’re the first company that really focused on this product. And I think that’s a great thing, because ultimately companies before us were actually just giving it away, almost,” Shkreli continued. “The price that they were pricing it at, $13.50, you only needed less than 100 pills, so at the end of the day the price per course of treatment—to save your life!—was only $1,000.”

His argument, in a nutshell, is that by charging so much more for the drug, Turing can put money into developing newer, better drugs for toxoplasmosis. Daraprim has been on the market for a long time, he argued (it was approved by the FDA in 1953, according to the Times) and patients “deserve” a new drug. They also "deserve a drug company that's making a fair profit," he said.

But organizations that advocate for patients don’t see it that way. The Infectious Diseases Society of America and the HIV Medicine Association called the price hike “unjustifiable” and an expert in infectious diseases told the Times that the medical community isn’t “clamoring for better therapies” that Shkreli insisted are needed.

So what is going on here? It turns out that buying rights to drugs—older, even generic drugs—and raising their price sharply has been something of a business model for American pharmaceutical companies of late. Senator and presidential candidate Bernie Sanders (I-Vt.), along with Rep. Elijah Cummings (D-Md.) have been vocal about the problem, and have sent letters demanding more information from companies that do it. Last week, they sent a letter to a company called Valeant, who allegedly raised the price of a heart drug more than 500 percent the day it bought the rights to it. Last year, the pair went after the company that raised the price of Doxycycline, a common antibiotic, from $20 a bottle in 2013 to $1,849 by 2014.

Sanders and Cummings sent a letter to Turing on Monday, requesting more information from the company, calling the move “just the latest in a long list of skyrocketing price increases for certain critical medications.”

Presidential candidate Hillary Clinton chimed in too, promising she’d have a “plan to take it on” by the following day.

Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on. -H https://t.co/9Z0Aw7aI6h

— Hillary Clinton (@HillaryClinton) September 21, 2015

 

Clinton tweeted about this http://t.co/omo7UJ5wZG then this happened to the Nasdaq Biotech Index, via @ArmstrongDrew pic.twitter.com/MoxowbIuRV

— Phil Mattingly (@Phil_Mattingly) September 21, 2015

Still, Shkreli insists, his company is different from the others, noting larger companies do this, and worse, all the time. “Turing is a very small company, it’s a new company, and we’re not a profitable company. So for us to try to exist and maintain a profit I think is pretty reasonable,” he told CNBC on Monday. “I think profits are a great thing to stay in your corporate existence.”

 

I donated a total of $5,000,000 to various causes recently. Looking forward to telling you all about it.

— Martin Shkreli (@MartinShkreli) September 15, 2015

 

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Gurney [a_slug] => primary-stages-artistic-director-talks-about-theater-and-r-gurney [a_summary] => Primary Stages Artistic Director Andrew Leynse speaks with Newsweek about his theater and its... 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[rlabels] => Array ( ) [rlabel_links] => Array ( ) [rsummaries] => Array ( ) [box] => Array ( [box_id] => 310 [box_many] => 1 [box_label] => After login [box_link] => [box_auto] => 0 [cg_photo] => [cg_width] => 0 [cg_height] => 0 [cg_mxwidth] => [cg_mxheight] => [cg_folder] => thumb [cg_photo_len] => [cg_photo_reporter] => [cg_box] => 1 [cg_box_noeditable] => [cg_nobutton] => [cg_summary] => 0 [cg_summary_len] => 100 [cg_related] => [cg_subheadline] => [cg_label] => 1 [cg_label_on] => [cg_add] => [cg_automatic] => [cg_adjust] => [cg_duplication] => [cg_skip_dup] => [cg_tv_info] => [cg_reporter_info] => [cg_multi_photo] => [cg_cache] => [cg_icon] => [cg_color] => [cg_css] => [cg_article] => [cg_keyword] => [cg_video] => [cg_image] => [cg_custom] => [cg_product] => [cg_magazine] => [cg_rlabel] => 0 [cg_rsummary] => 0 [title] => After login ) [whole_label] => Save up to 50% on the shop prices when you subscribe [layer] => Array ( [ly_id] => 103 [ly_label] => art_usd ) ) ) ) { "version": "1.2", "identifier": "333404", "title": "Martin Shkreli on Raising Price of AIDS Drug 5,000 Percent: \u2018I Think Profits Are a Great Thing\u2019", "language": "en", "layout": { "columns": 16, "width": 1024, "margin": 40, "gutter": 24 }, "metadata": { "datePublished": "2015-09-21T22:39:34+01:00", "dateCreated": "2015-09-21T22:39:34+01:00", "generatorName": "ibt-apple-news", "canonicalURL": "http:\/\/europe.newsweek.com\/martin-shkreli-daraprim-drug-prices-333404", "dateModified": "2015-09-21T22:39:34+01:00", "authors": [ "Zo\u00eb Schlanger" ], "thumbnailURL": "https:\/\/d.europe.newsweek.com\/en\/full\/13456\/09-21-aidsmeds-01.jpg" }, "advertisingSettings": { "bannerType": "any", "frequency": 10, "layout": { "margin": { "top": 15, "bottom": 20 } } }, "documentStyle": { "backgroundColor": "#f6f6f6" }, "components": [ { "role": "title", "text": "Martin Shkreli on Raising Price of AIDS Drug 5,000 Percent: \u2018I Think Profits Are a Great Thing\u2019", "textStyle": "titleStyle", "layout": "titleLayout" }, { "role": "container", "components": [ { "role": "author", "text": "Zo\u00eb Schlanger" }, { "role": "body", "text": "September 21, 2015", "textStyle": "authorDateStyle", "layout": "authorDateLayout" }, { "role": "photo", "URL": "https:\/\/d.europe.newsweek.com\/en\/full\/13456\/09-21-aidsmeds-01.jpg", "caption": "Medicines for HIV-positive patents are seen at a Doctors without Borders clinic in Yangon, February 21, 2012. HIV and AIDS patients often rely on a cocktail of drugs each day, often at great cost. Recently one of the cheaper drugs saw a mark up of 5000% after a former hedge fund manager acquired the rights to sell it." }, { "role": "container", "components": [ { "role": "caption", "text": "Medicines for HIV-positive patents are seen at a Doctors without Borders clinic in Yangon, February 21, 2012. HIV and AIDS patients often rely on a cocktail of drugs each day, often at great cost. Recently one of the cheaper drugs saw a mark up of 5000% after a former hedge fund manager acquired the rights to sell it.", "textStyle": "captionStyle", "layout": "captionLayout" }, { "role": "photographer", "text": "Soe Zeya Tun\/Reuters", "textStyle": "photographerStyle", "layout": "photographerLayout" } ], "identifier": "container2" }, { "role": "body", "text": "Meet Martin Shkreli.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "This is Shkreli posing under a television playing a Flo Rida music video.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "\u00c2\u00a0", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "quote", "compontents": [ { "role": "body", "text": "$VTL<\/a> #GDFR<\/a> pic.twitter.com\/FlZu2N68sy<\/a>", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" } ] }, { "role": "body", "text": "\u00e2\u0080\u009cWell, we needed to turn a profit on this drug,\u00e2\u0080\u009d Shkreli, a former hedge fund manager, said on Monday\u00c2\u00a0to the Bloomberg<\/a> host who asked why his pharmaceutical start up just raised the price of a drug critical to HIV treatments\u00c2\u00a0from $13.50 a tablet to $750 overnight.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "\u00e2\u0080\u009cBut my understanding is that, to actually produce this pill, costs what, only a dollar?\u00e2\u0080\u009d the host asked.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "\u00e2\u0080\u009cIt costs very little money to make Daraprim,\u00e2\u0080\u009d Shkreli replied, before listing other costs, like the cost of distribution and patient relations, that go into a drug like this.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "Shkreli\u00e2\u0080\u0099s company, Turing Pharmaceuticals, bought the rights to Daraprim and immediately hiked the price more than 5,000 percent, The New York Times<\/em><\/a> reported on Monday. Daraprim is considered part of the standard treatment for a potentially life-threatening parasitic infection called toxoplasmosis. It is also used to treat people with compromised immune systems, like AIDS patients.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "In his former life as a hedge fund manager, Shkreli was accused of urging the FDA to not approve drugs from companies whose stocks he was shorting<\/a>. Then he started another company that bought the rights to drugs and then raised their prices. The board of that company is currently suing<\/a> Shkreli for $65 million, the Times <\/em>reported.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "But Shkreli appears undaunted. The morning the Daraprim news broke, Shkreli tweeted the defiant lyrics to an Eminem song: \u00e2\u0080\u009cAnd it seems like the media immediately points a finger at me\/So I point one back at em, but not the index or pinkie.\u00e2\u0080\u009d He\u00e2\u0080\u0099s been fighting with critics<\/a> on Twitter since last night.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "quote", "compontents": [ { "role": "body", "text": "http:\/\/t.co\/co6Fmwk3XX<\/a>&#10;And it seems like the media immediately points a finger at me&#10;So I point one back at em, but not the index or pinkie", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" } ] }, { "role": "body", "text": "\u00c2\u00a0", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "On Bloomberg on Monday, Shkreli praised the price hike as, basically, absolutely wonderful.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "\u00e2\u0080\u009cWe\u00e2\u0080\u0099re the first company that really focused on this product. And I think that\u00e2\u0080\u0099s a great thing, because ultimately companies before us were actually just giving it away, almost,\u00e2\u0080\u009d Shkreli continued. \u00e2\u0080\u009cThe price that they were pricing it at, $13.50, you only needed less than 100 pills, so at the end of the day the price per course of treatment\u00e2\u0080\u0094to save your life!\u00e2\u0080\u0094was only $1,000.\u00e2\u0080\u009d", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "His argument, in a nutshell, is that by charging so much more for the drug, Turing can put money into developing newer, better drugs for toxoplasmosis. Daraprim has been on the market for a long time, he argued (it was approved by the FDA in 1953, according to the Times<\/em>) and patients \u00e2\u0080\u009cdeserve\u00e2\u0080\u009d a new drug. They also \"deserve a drug company that's making a fair profit,\" he said.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "But organizations that advocate for patients don\u00e2\u0080\u0099t see it that way. The Infectious Diseases Society of America and the HIV Medicine Association called the price hike \u00e2\u0080\u009cunjustifiable\u00e2\u0080\u009d and an expert in infectious diseases told the Times <\/em>that the medical community isn\u00e2\u0080\u0099t \u00e2\u0080\u009cclamoring for better therapies\u00e2\u0080\u009d that Shkreli insisted are needed.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "So what is going on here? It turns out that buying rights to drugs\u00e2\u0080\u0094older, even generic drugs\u00e2\u0080\u0094and raising their price sharply has been something of a business model for American pharmaceutical companies of late. Senator and presidential candidate Bernie Sanders (I-Vt.), along with Rep. Elijah Cummings (D-Md.) have been vocal about the problem, and have sent letters demanding more information from companies that do it. Last week, they sent a letter to a company called Valeant<\/a>, who allegedly raised the price of a heart drug more than 500 percent the day it bought the rights to it. Last year, the pair went after<\/a> the company that raised the price of Doxycycline, a common antibiotic, from $20 a bottle in 2013 to $1,849 by 2014.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "Sanders and Cummings sent a letter to Turing on Monday, requesting more information from the company, calling the move \u00e2\u0080\u009cjust the latest in a long list of skyrocketing price increases for certain critical medications.\u00e2\u0080\u009d", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "Presidential candidate Hillary Clinton chimed in too, promising she\u00e2\u0080\u0099d have a \u00e2\u0080\u009cplan to take it on\u00e2\u0080\u009d by the following day.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "quote", "compontents": [ { "role": "body", "text": "Price gouging like this in the specialty drug market is outrageous. Tomorrow I&#39;ll lay out a plan to take it on. -H https:\/\/t.co\/9Z0Aw7aI6h<\/a>", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" } ] }, { "role": "body", "text": "\u00c2\u00a0", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "quote", "compontents": [ { "role": "body", "text": "Clinton tweeted about this http:\/\/t.co\/omo7UJ5wZG<\/a> then this happened to the Nasdaq Biotech Index, via @ArmstrongDrew<\/a> pic.twitter.com\/MoxowbIuRV<\/a>", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" } ] }, { "role": "body", "text": "Still, Shkreli insists, his company is different from the others, noting larger companies do this, and worse, all the time. \u00e2\u0080\u009cTuring is a very small company, it\u00e2\u0080\u0099s a new company, and we\u00e2\u0080\u0099re not a profitable company. So for us to try to exist and maintain a profit I think is pretty reasonable,\u00e2\u0080\u009d he told CNBC on Monday. \u00e2\u0080\u009cI think profits are a great thing to stay in your corporate existence.\u00e2\u0080\u009d", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "body", "text": "\u00c2\u00a0", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "quote", "compontents": [ { "role": "body", "text": "I donated a total of $5,000,000 to various causes recently. Looking forward to telling you all about it.", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" } ] }, { "role": "body", "text": "\u00c2\u00a0", "format": "html", "textStyle": "bodyStyle", "layout": "bodyLayout" }, { "role": "aside", "components": [ { "role": "body", "text": "Big Pharma Plays Hide-the-Ball With Data<\/a>", "format": "html" } ] } ] } ], "componentTextStyles": { "titleStyle": { "textAlignment": "left", "lineHeight": 46, "fontName": "PlayfairDisplay-Bold", "fontSize": 34, "textColor": "#0E0E0E" }, "subtitleStyle": { "textAlignment": "left", "lineHeight": 22, "fontName": "HelveticaNeue-Bold", "fontSize": 17, "textColor": "#222222" }, "authorDateStyle": { "textAlignment": "left", "lineHeight": 28, "fontName": "Lato-Italic", "fontSize": 16, "textColor": "#0E0E0E" }, "captionStyle": { "textAlignment": "left", "lineHeight": 18, "fontName": "Lato-Regular", "fontSize": 13, "textColor": "#444444" }, "photographerStyle": { "textAlignment": "left", "lineHeight": 18, "fontName": "Lato-Regular", "fontSize": 12, "textColor": "#999999" }, "bodyStyle": { "textAlignment": "left", "lineHeight": 25, "fontName": "Lato-Regular", "fontSize": 17, "textColor": "#222222" }, "noteStyle": { "textAlignment": "left", "lineHeight": 25, "fontName": "Lato-Italic", "fontSize": 17, "textColor": "#222222" } }, "componentLayouts": { "titleLayout": { "margin": { "top": 20, "bottom": 14 } }, "subtitleLayout": { "margin": { "bottom": 14 } }, "authorDateLayout": { "margin": { "bottom": 14 } }, "captionLayout": { "margin": { "top": 4 } }, "photographerLayout": { "margin": { "bottom": 28 } }, "photoLayout": { "margin": { "top": 36 } }, "bodyLayout": { "columnStart": 1, "columnSpan": 12 }, "dividerTopLayout": { "margin": { "top": 36, "bottom": 14 } }, "dividerBodyLayout": { "margin": { "top": 10, "bottom": 10 } }, "dividerBottomLayout": { "margin": { "top": 20, "bottom": 36 } } } }