>> MARTIN SHKRELI IS THE CEO OF TURING PHARMACEUTICALS
WHICH IS A PHARMACEUTICAL COMPANY THAT RECENTLY
PURCHASED A DRUG KNOWN AS DARAPRIM AND RAISED THE
PRICE FROM $13.50, TO A WHOPPING $750 PER TABLET.
THIS IS A DRUG THAT TREATS TOXOPLASMOSIS.
IT IS A DRUG THAT TREATS THOSE WHO HAVE A PARASITIC INFECTION.
HE RAISED THE PRICE FOR THAT AND MANY WERE UPSET, INCLUDING
HILLARY CLINTON THAT TWEETED ABOUT IT.
SHE SAID, "PRICE GOUGING LIKE THIS IN THE SPECIALTY DRUG
MARKET IS OUTRAGEOUS.
TOMORROW I'LL LAY OUT A PLAN TO TAKE IT ON."
SHE'S BASICALLY GOING TO GO AFTER THIS AND NOT ALLOW
PEOPLE TO PRICE GOUGE SHOULD SHE GET ELECTED AS PRESIDENT.
INTERESTINGLY ENOUGH, CBS INTERVIEWS HIM AND THEY
WANT TO GET HIS TAKE ON THIS.
HERE IS WHAT HE HAD TO SAY.
TAKE A LOOK.
>> WHY WAS IT NECESSARY TO RAISE THE PRICE SO DRASTICALLY?
>> DEPENDS ON WHAT HOW YOU DEFINE DRASTIC.
THE DRUG WAS UNPROFITABLE AT THE CURRENT PRICE.
ANY COMPANY SELLING IT WOULD BE LOSING MONEY.
AT THIS PRICE, IT IS A REASONABLE PROFIT, NOT
EXCESSIVE.
>>DARAPRIM WAS DEVELOPED IN 1953 AS THE TREATMENT FOR
TOXOPLASMOSIS, AN INFECTION CAUSED BY A PARASITE.
IT COMES FROM DRINKING CONTAMINATED WATER,
CONTAMINATED MEAT, AND AFFECTS THOSE WITH COMPROMISED
IMMUNE SYSTEMS LIKE AIDS AND CANCER PATIENTS.
WHEN THE PHARMACEUTICAL COMPANY RAISED THE PRICE TO $750
PER PILL, THE AVERAGE COST OF TREATMENT FOR PATIENTS ROSE
FROM ABOUT $1130-$63,000.
FOR CERTAIN PATIENTS THE COST CAN RUN AS HIGH AS $634,000.
>>
THIS DRUG IS USED BY A SMALL BUT VULNERABLE GROUP OF PATIENTS.
YOU SEE HOW GREEDY THIS MOVE LOOKS?
>>YES, I CAN SEE HOW IT LOOKS GREEDY, BUT THERE ARE A LOT
OF ALTRUISTIC PROPERTIES TO IT.
>> IN WHAT WAY?
>>ONE EXAMPLE IS THAT THIS IS A DISEASE WHERE THERE HASN'T
BEEN ONE PHARMACEUTICAL COMPANY FOCUSED ON FOR SEVEN YEARS.
WE ARE NOW A COMPANY THAT IS DEDICATED TO THE TREATMENT
AND CURE OF TOXOPLASMOSIS.
WITH THESE PROFITS WE CAN SPEND ON THESE PATIENTS
WHO NEED A NEW DRUG.
>> I GUARANTEE YOU HE WILL NOT MAKE A NEW DRUG.
>> ALSO, THERE IS AN OFFICIAL THAT MADE A GOOD POINT.
HE SAID EVEN IF HE IS NOT LYING AND IS PLANNING ON USING
THE PROFITS TO CREATE A NEW DRUG, A, WE DON'T NEED A
NEW DRUG BECAUSE THIS PILL WORKS FINE.
AND B, IF YOU NEEDED TO DEVELOP A NEW DRUG THAT IS MORE
EFFECTIVE, YOU SHOULD NOT BE TAXING THE CURRENT VICTIMS
OF THIS DISEASE.
YOU ARE SUPPOSED TO ONLY CHARGE THEM FOR WHAT THEY NEED IN
ORDER TO SURVIVE OR FIGHT WHATEVER THEY HAVE.
THAT IS A GREAT POINT THAT I WISH I THOUGHT OF YESTERDAY.
>> THIS IS A TERRIFIC REPORT BY CBS FOR THIS.
IF YOU DON'T HAVE HEALTH INSURANCE, YOU ARE DONE.
HE IS GOING TO BANKRUPT YOU AND TAKE EVERY DOLLAR YOU HAVE
IN YOUR POCKET.
IF YOU RUN OUT AND CAN AFFORD IT ANYMORE, I DON'T KNOW WHAT
HAPPENS TO YOU THEN.
>> YEAH, WHAT HAPPENS?
THIS IS NOT THE FIRST TIME HE'S DONE THIS.
HE USED TO BE THE CEO OF A DIFFERENT COMPANY.
THEY BOUGHT THE RIGHTS TO A DRUG THAT HELPS THOSE WHO HAVE KIDNEY
DISEASE.
IT HELPS PEOPLE THAT HAVE KIDNEY STONES REGULARLY.
HE BUYS THE DRUG AND TAKES IT FROM ONE DOLLAR PER TABLET TO
$30 PER TABLET.
PEOPLE WHO WOULD PAY AROUND $50,000
FOR THIS TREATMENT, END UP PAYING WELL OVER $100,000.
THIS IS NOT HIS FIRST TIME DOING IT.
HE DIDN'T REALLY GET A LOT OF NEGATIVE PRESS WHEN HE DID
IT THAT TIME.
THE REASON HE IS GETTING NEGATIVE PRESS NOW IS
BECAUSE THE PRICE GOUGING IS SO OUTRAGEOUS, THAT PEOPLE ARE
RAISING RED FLAGS.
>> THAT PILL WAS MARKETED JUST BACK IN 2009 FOR A DOLLAR.
NOW IT IS $750.
I AM A CAPITALIST, I BELIEVE IN THE MARKETS AND THE FREE MARKET.
I BELIEVE THEY ALSO HAVE TO BE REGULATED SO THAT YOU DON'T
HAVE MONOPOLIES.
WHAT I DON'T BELIEVE IS HAVING NO RULES IN CAPITALISM.
THE ROBBERS LOVE IT WHEN YOU TAKE AWAY THE COPS.
WE HAVE GONE TO A PLACE WHERE IT IS BASICALLY ANARCHY.
THERE ARE NO RULES.
SO GUYS LIKE THIS COME IN AND TAKE ADVANTAGE.
WELCOME TO UNCHECKED CAPITALISM WHERE THERE ARE NO RULES.
>> I LOVE STORIES LIKE THIS, IT PROVES HOW IMPORTANT
REGULATION IS.
THERE ARE PEOPLE WHO BELIEVE IN THE FREE MARKET SYSTEM WITH
NO REGULATION.
THEY THINK ANARCHY MAKES ALL THE SENSE IN THE WORLD BECAUSE
THE FREE MARKET IS GOING TO DECIDE WHAT HAPPENS WITH
THESE PHARMACEUTICAL COMPANIES AND CORPORATIONS.
PEOPLE ARE SMART, THEY ARE NOT INHERENTLY EVIL AND GREEDY,
SO THEY WILL DO THE RIGHT THING.
THAT IS NOT THE CASE.
THESE CORPORATIONS AND PHARMACEUTICAL COMPANIES
HAVE NO MORALITY WHATSOEVER.
WHEN IT COMES TO A BOTTOM LINE
THEY WILL DO WHATEVER IS NECESSARY TO TURN A PROFIT.
THAT IS EXACTLY WHAT IS HAPPENING HERE.
>> EVEN IF YOU HAD A LIBERTARIAN UTOPIA, WHICH YOU DON'T,
HE'S GOING TO KEEP CHARGING THIS FOR AS LONG AS HE CAN.
HE DOESN'T CARE ABOUT THE COST OF LIVES AND WELL-BEING.
BUT EVEN IF YOU HAD
A LIBERTARIAN UTOPIA,
ñ LET'S SAY COMPETITION WILL BRING DOWN THE PRICE EVENTUALLY,
IN THE MEANWHILE, HOW MANY LIVES ARE GOING TO BE LOST OR BANKRUPT?
HOW LONG DID THAT PROCESS TAKE?
IN THE MEANWHILE, LOOK, YOU SHOULD'VE KNOWN BETTER, THE
FREE MARKET.
NO, THAT DRUG SAVES THEIR LIFE.
FREE MARKET IS RIGHT, BUT WHEN YOU PERVERT THE FREE
MARKETS BY TAKING AWAY ALL BOUNDARIES AND ALL
REGULATIONS, NOW WHAT WE HAVE LEFT IS NOT A FREE MARKET,
WE HAVE CRONY CAPITALISM AND ANARCHY.