AN EX HEDGE FUND
MANAGER HAS BOUGHT THE RIGHTS TO A DRUG THAT HELPS PEOPLE WHO
HAVE A PARASITIC INFECTION, AND HE IS NOW PRICE GOUGING THOSE
WHO NEED THAT DRUG IN ORDER TO SURVIVE.
THE EX-HEDGE FUND
MANAGER HERE IS MARTIN SHKRELI, AND HE IS BEHIND TURING
PHARMACEUTICALS.
HE BOUGHT A DRUG THAT IS KNOWN AS DARAPRIM.
HE PURCHASED THE RIGHTS
TO THE SIXTY-TWO-YEAR-OLD DRUG USED FOR TREATING
LIFE-THREATENING PARASITIC INFECTIONS, AND RAISE THE PRICE
OVERNIGHT FROM $13.50 PER TABLET
TO A WHOPPING $750 PER TABLET.
I DIDN'T REALIZE HOW YOUNG HE LOOKS.
HE'S 32.
WEíLL GET TO THAT IN A SECOND.
I WANT YOU TO
UNDERSTAND THE CONTEXT OF THIS, AND LET'S BE FAIR TO THE
DIFFERENT INDUSTRIES THAT ARE INVOLVED.
LET'S BE FAIR TO THE
PHARMACEUTICAL INDUSTRY.
SOUNDS INTERESTING, RIGHT?
WE'RE DOING
A STORY ABOUT HOW SOME JERK AT A PHARMACEUTICAL COMPANY DID
SOMETHING TERRIBLE.
ONE OF THE LEADING COMPANIES IN THAT
INDUSTRY SOLD THAT PILL IN 2009 FOR ONE DOLLAR.
IN 2010 THE PRICE
WENT UP TO $13.50.
THIS GUY BUYS IT AND JACKS IT UP TO $750.
IN THE SPAN OF SIX YEARS IT GOES
FROM $1-$750.
CREDIT TO THE COMPANY THAT DID NOT JACK UP THE
PRICES.
ALSO, THIS GUY IS REFERRED TO AS AN EX HEDGE FUND
MANAGER.
UNDERSTAND HE IS NOT CURRENTLY A HEDGE FUND MANAGER,
HE IS THE CEO OF THIS PARTICULAR
COMPANY.
HE'S THIRTY-TWO, HE'S REALLY YOUNG.
HE ACTUALLY
WASN'T EVEN IN THE HEDGE FUND
BUSINESS THAT LONG.
HOW DID HE BECOME A CEO AND ALL OF THIS?
FINANCE WORLD, GRAB THE MONEY.
YOU ROB PEOPLE.
I WANT TO GIVE YOU HIS EXCUSE FOR THE
PRICE GOUGING.
HE IS CLAIMING IT IS NOT PRICE GOUGING.
HE IS
CLAIMING THAT THE REASON WHY THEY HAVE INCREASED THE PRICE
PER TABLET IS BECAUSE THEY WANT TO RAISE AS MUCH MONEY AS
POSSIBLE TO FIND A BETTER DRUG TO TREAT THIS CONDITION.
EXPERTS IN THE FIELD ARE SAYING YOU DON'T NEED A BETTER DRUG,
THIS DRUG WORKS PERFECTLY FINE.
IF HE DOES CREATE A BETTER DRUG, DO YOU THINK HE IS GOING TO
SELL IT AT AN AFFORDABLE PRICE?
YOU'LL PROBABLY SELL IT FOR $1500 A PILL.
HE SAYS, "THIS ISN'T THE GREEDY DRUG COMPANY TRYING
TO GOUGE PATIENTS, IT IS US TRYING TO STAY IN BUSINESS."
GLAXO SMITH KLINE, IT'S NOT LIKE THEY AREN'T CAPITALISTS.
IT'S NOT LIKE THEY DON'T LIKE PROFITS.
THEY NEED PLENTY OF
PROFITS AT A DOLLAR, AND THEY THOUGHT THAT WAS ENOUGH TO FIND
THEIR NEW RESEARCH AND DO ALL THE THINGS THEY NEEDED TO DO.
WHAT BREAKTHROUGHS HAS HIS TINY PHARMACEUTICAL COMPANY HAD, WITH
ALL OF THE $750
THAT THEY ARE BARELY STAYING IN BUSINESS WITH, PER PILL.
IN 2011, HE HELPED FORM ANOTHER COMPANY, WHICH ALSO ACQUIRED
OLD DRUGS AND IMMEDIATELY RAISE THE PRICES.
THE BOARD FIRED HIM A YEAR AGO, AND HAS FILED A COMPLAINT IN THE
FEDERAL DISTRICT COURT ACCUSING HIM OF USING THE DRUG AS A
PERSONAL FUNDS TO PAY BACK ANGRY INVESTORS IN HIS HEDGE FUND.
SO, HE GOES INTO FINANCE, STARTS UP A HEDGE FUND.
I DON'T KNOW IF THE PEOPLE WERE ACTUALLY ROBBED, BUT THEY
FEEL LIKE THEY WERE, AND SO HE ARE BUSY TRYING TO GET THE
MONEY BACK IN SOME WAY.
SO HE SET UP A DRUG COMPANY, USES THAT TO PAY OFF THE
PEOPLE THAT HE ALLEGEDLY SCREWED OVER IN THE HEDGE FUND, AND
THEN SET UP ANOTHER COMPANY BECAUSE HE IS LIKE, THIS IS
THE BUSINESS.
BECAUSE YOU KNOW WHY?
IF YOU ARE INFECTED WITH A PARASITIC DISEASE, WHAT WONíT
YOU PAY?
HE PICKS PEOPLE AT THEIR MOST VULNERABLE AND SAYS, I'VE
GOT A DRUG THAT CAN HELP YOU, BUT I'M HOLDING IT HOSTAGE.
IT'S INCREDIBLE WHAT GREED CAN DO TO YOU.
BUT YOU JUST HAVE
COMPLETE DISREGARD FOR THE
WELL-BEING OF HUMAN BEINGS, BECAUSE ALL YOU WANT TO DO IS
MAKE A BUCK.
WHY YOU HAVE TO BE SO EVIL?
BUT THAT IS WHAT HAPPENS WHEN YOU'RE A SOCIOPATH, YOU
DON'T CARE ABOUT OTHER PEOPLE.
YOU HAVE NO EMPATHY WHATSOEVER.
I DON'T BELIEVE IN THE CONCEPT OF EVIL, BUT I DO
BELIEVE IN THE CONCEPT OF GREED.
IT IS INFINITE, THERE IS NO END
TO IT.
IF HE JACKED UP THE PRICE FROM $13.50 TO FIFTY
DOLLARS, HE PROBABLY WOULD HAVE
GOTTEN AWAY WITH IT.
HE MADE IT SO OUTRAGEOUS THAT EVERYONE HAD
TO TALK ABOUT IT.
$750, PER PILL.
YOU DIG AND YOU DIG AND
YOU DIG UNTIL YOU GET TO THE
BALROG.
THIS GUY DOESN'T HAVE A CONSCIOUS ABOUT IT AND HE IS
GOING TO KEEP GOING.
YOU THINK HE WON'T DO IT AGAIN?
THINK AGAIN.