Daraprim is used to treat the disease toxoplasmosis, caused by the parasite Toxoplasma gondii (an obligate, intracellular, parasitic protozoan.) The parasite is one of the most common parasites in developed countries. Despite its commonality, infection is rare. However, the condition remains dangerous for people who have weakened immune systems. This can include those with HIV. Severe symptoms include seizures and poor coordination. In addition, swollen lymph nodes occur in the neck, under the chin, in the armpits and the groin.
Working on the principles of supply and demand, Turning Pharmaceuticals increased the price of Daraprim more than fifty-fold (as covered by Brett Wilkins on Digital Journal). This meant that the drug climbed in price, in less than 24 hours, from $13.50 to $750 per pill. Treatment can take up to a year, at the rate of a pill per day.
The price hike happened when Turning Pharmaceuticals forked out $55 million to purchase all rights of the product from Impax Laboratories in August 2015. As soon as the sale went through, the price of the pills was raised.
The decision led to public protests, angry exchanges from clinicians, and letters of concern from the Infectious Diseases Society of America and the HIV Medicine Association. Some accusations accused Turning Pharmaceuticals as exploiting the ill for profit maximization.
Reacting to the public response, Martin Shkreli, the venture capitalist who heads up Turning Pharmaceuticals, told PharamFile: “Yes it is absolutely a reaction – there were mistakes made with respect to helping people understand why we took this action, I think that it makes sense to lower the price in response to the anger that was felt by people.”
Turning Pharmaceuticals had indicated it raised the price in order to reinvest profits to look for more effective treatments. Others simply attributed the price hike to a simple act of profit maximization. Whatever the motivations, the drug is back at a lower price.
