U.S. drugmaker Turing to
roll back 5,000 percent price hike
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[September 23, 2015]
(Reuters) - Turing Pharmaceuticals,
a small company that generated outrage over raising the cost of an old
anti-infective drug by more than 5,000 percent, said on Tuesday it would
roll back that increase to make sure it remains affordable.
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Turing and its Chief Executive Officer Martin Shkreli became the new
face of the U.S. drug pricing controversy this week, after the New
York Times reported that the company had raised the price of
Daraprim, a 62-year-old treatment for a dangerous parasitic
infection, to $750 a pill from $13.50 after acquiring it. The
medicine once sold for $1 a pill.
The story sparked outrage among patients, medical societies and
Democratic presidential front-runner Hillary Clinton, who outlined
on Tuesday a proposal to cap skyrocketing prescription drug costs
for consumers.
"We've agreed to lower the price of Daraprim to a point that is more
affordable and is able to allow the company to make a profit, but a
very small profit, and we think these changes will be welcome,"
Shkreli told ABC World News Tonight. The final cost was still being
determined, but would be less than $750 per pill.
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Earlier in the day, PhRMA, the pharmaceutical industry's main
lobbying group, sought to distance itself from Turing's move,
posting on Twitter that the drugmaker "does not represent the values
of PhRMA member companies."
Asked for further details, the lobby group noted that Turing is not
one of its members, which include global drugmakers such as Merck &
Co, Pfizer and Novartis.
"PhRMA members have a long history of drug discovery and innovation
that has led to increased longevity and improved lives for millions
of patients," the group said in a statement. "Turing Pharmaceutical
is not a member of PhRMA and we do not embrace either their recent
actions or the conduct of their CEO.”
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In an interview on CNBC on Monday, an unapologetic Shkreli said that
Daraprim had been priced too low and that his company needed to
generate profits that it would spend on new research and
development. PhRMA member companies have made similar arguments on
the need to price new drugs high enough to ensure that they have
enough to cover their R&D investments.
Asked if he would lower the price in response to the furor, Shkreli
simply responded, "No."
(This story has been refiled to correct typographical errors in
byline)
(Reporting by Bill Berkrot and Caroline Humer in New York, Peter
Cooney in Washington)
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