Turing Pharmaceuticals Analysis

Conclusion

Stefano Pezzetta – 0864873

MSF should not continue on with their relationship to Turing as the supplier for Daraprim. Instead, they should look to Imprimis as the new supplier of the pill. Turing has failed to price Daraprim affordably and has not shown the ability to back up the promises they make. Additionally, they run a company which does not adhere to the same ethical standards as MSF. Imprimis on the other hand has provided a affordable drug, they can be attained by the masses and individualized for the consumer.

Turing has clearly sought to price gouge the specialty market in order to capitalize on company profit. The CEO Martin Shkreli is a capitalist and is more focused on running the company for monetary gain rather for the medical benefit of those who have the disease. The Daraprim pill has been on the market for 62 years without competitions and Turing sought to take advantage of the market. They increased the price of the pill from $13.50 to $750 per unit. In an interview with CBC, Shkreli stated that, “This is a disease where there hasn't been one pharmaceutical company focused on it for 70 years…with these new profits we can spend all of that upside on these patients who sorely need a new drug, in my opinion." Users of the drug should not have to pay for the future development and research of new drugs. The current drug is rug is the leading effective drug for the treatment of toxoplasmosis. Furthermore, there is little evidence to show that Shkreli’s opinion to research a new remedy is needed in the current time. MSF is a company built on ethics and integrity and Imprimis seems to share that goal. Imprimis Pharmaceuticals, a maker of compounding drugs, has begun to sell their version of the drug for $1 a pill and $99 for a 100 capsule bottle. These capsules will contain the active ingredients in Daraprim but can only be filled individually. Imprimis Pharmaceuticals is not solely looking to capitalize here by underselling Turing but to provide this drug to those patients who need it at a price they can afford. In a CBC article Chief Executive Mark Baum stated, “We are looking at all of these cases where the sole-source generic companies are jacking the price.” Business relationships are very important and partnering with a company who caries a bad image is never condoned. Turing, in many Americans eyes, is a very hated company based on the price hiking they performed on a life saving drug. MSF would be better off partnering with a company like Imprimis who shares a passion for positive change in the medical community.

Additionally, the high prices set by Turing have negatively impacted the attainability of the drug. The Infectious Disease Society of America (IDSA) has found that the estimated annual cost of treatment for toxoplasmosis after this price hike, will be $336,000 for patients who weigh less than 60 kilograms and $634,500 for patients who weigh more than 60 kilograms. At this price many patients are having trouble attaining the product, and the same goes for hospitals. The IDSA found that hospitals, including those with 340B pharmacies, also reported being unable to obtain the medication after the price increase. If the people who need the drug aren’t able to attain it then there needs to be a solution to the pricing problem and Imprimis is the solution. At their selling price point, the Daraprim is affordable for the people who need it.