YOU MAY REMEMBER THAT A MONTH AGO THE CEO OF TURING
PHARMACEUTICALS GOT
SLAMMED ON THE INTERNET FOR RAISING THE PRICE OF
DARAPRIM FROM $13.50 TO $750 PER PILL.
THIS WAS A HUGE PROBLEM BECAUSE IT IS THE ONLY DRUG THAT
HAS BEEN APPROVED AND AVAILABLE FOR THOSE WHO HAVE COMPROMISED
IMMUNE SYSTEMS, LIKE PEOPLE WITH HIV, AIDS, AND PREGNANT MOTHERS.
ANOTHER PHARMACEUTICAL COMPANY HAS DECIDED TO CREATE A
SIMILAR DRUG THAT PROVIDES SIMILAR BENEFITS FOR JUST
ONE DOLLAR A PILL.
THE CEO HAD SOMETHING TO SAY, HE SAYS, "WHILE WE RESPECT TO
MAKE THE RIGHT TO CHARGE PATIENTS AND INSURANCE
COMPANIES WHATEVER WE BELIEVE IS APPROPRIATE, THERE MAY BE A
MORE COST-EFFECTIVE COMBAT OPTIONS FOR MEDICATIONS
SUCH AS DARAPRIM, FOR PATIENTS, PHYSICIANS, INSURANCE
COMPANIES AND PHARMACY BENEFIT MANAGERS TO CONSIDER."
GOOD FOR THEM.
THIS WENT FROM $750 TO A DOLLAR.
IT IS INSANE.
REMEMBER, IT STARTED OUT AS A DOLLAR.
THIS DRUG HAS BEEN SOLD TWICE TO TWO DIFFERENT COMPANIES.
EARLIER, ANOTHER PHARMACEUTICAL COMPANY BOUGHT IT AND SAID
WE HAVE TO TURN A BUCK HERE.
HE'S NOT PUTTING ANY MONEY INTO RESEARCH, DEVELOPMENT,
OR ANYTHING.
HE IS PUTTING IT INTO HIS G4 PLANE.
TURING PHARMACEUTICALS BOUGHT THE FORMULATION FOR THE
DRUG BACK IN AUGUST FOR 55 MILLION.
IT'S INTERESTING BECAUSE THE CEO OF THE OTHER COMPANY IS
MAKING IT FOR A DOLLAR AND SAYS HERE IS WHY.
HE SAYS, "THE ISSUE IS NOT THE COST OF THE DRUG OR THE
COST OF LABOR, THE ISSUE IS THE COST OF CAPITAL."
HE HAS TO COVER THE COST FOR THE PILL.
THAT MEANS HE HAS TO SELL IT FOR A LOT MORE THAN WE DO.
HE IS KIND OF EXCUSING THEM RIGHT HERE.
THAT IS THE POINT I MADE WITHOUT ANY OTHER REPORTING ON IT.
I SAID LOOK, HE IS NOT CHARGING FOR THE DRUG, HE IS
CHARGING FOR ALL THE MONEY HE HAD TO PAY TO BUY THE
RIGHTS TO THE DRUG IN THE FIRST PLACE.
NOW, IF THIS WINDS UP BEING A COMPETITOR, EVERYONE IS
GOING TO HAVE A NICE SMILE ON HIS FACE BECAUSE HE IS
GOING TO GO OUT OF BUSINESS.
AND THE REASON WHY THIS OTHER COMPANY DOESN'T HAVE TO
CHARGE SO MUCH IS BECAUSE INSTEAD OF BUYING THE
FORMULA OUT RIGHT, THEY DECIDED TO MANIPULATE IT A LITTLE BIT.
THEY USE SIMILAR INGREDIENTS TO HAVE A DIFFERENT FORMULATION.
IT'S ALL VERY LEGAL.
DON'T GET HER WRONG, THE THING THEY ARE ADDING ALSO
HELPS YOU WITH THE SAME AILMENT.
THEY ARE DOING A GREAT THING HERE.
THE OTHER THING THAT I HAPPEN TO KNOW IS THAT THE REST OF
THE HEALTHCARE INDUSTRY WAS FURIOUS WITH MARTIN SHKRELI.
HE IS LIKE AN EVIL VILLAIN IN A COMIC BOOK MOVIE.
THAT IS HOW BAD HE IS IN MY MIND.
I THOUGHT SO AS WELL.
AT FIRST YOU SAID YOU WERE SAYING HE HAS TO COVER HIS
COSTS?
MY POINT IS THAT HE SHOULD NOT HAVE BOUGHT IT FOR $55
MILLION IN THE FIRST PLACE BECAUSE THEN YOU KNOW YOU
HAVE TO COVER YOUR COSTS AND YOU KNOW YOU ARE OVERCHARGING
THE PEOPLE THAT NEED THIS DRUG.
OF COURSE HE KNEW THAT FROM DAY ONE.
THE REASON HE BOUGHT IT IS SO THAT HE CAN PAY FOR HIS
FINANCING COSTS AND STILL MAKE MONEY.
THE REASON HE TARGETED THIS DRUG, REMEMBER HE DIDN'T
DISCOVER THIS OR MAKE THIS IN THE LAB, HE BOUGHT IT AFTER
PEOPLE HAD ALREADY MADE IT AND WERE CHARGING A DOLLAR.
THE GENERIC DRUG WAS ALREADY AVAILABLE.
SO, HE IS NOT A GOOD BUSINESSMAN.
CLEARLY NOT NOW THAT THIS IS HAPPENING.
HE IS A RELATIVELY YOUNG GUY, SO HE THOUGHT HE
HAD
EVERYTHING FIGURED OUT.
JUST ONE QUICK THING, HE TARGETED THIS DRUG AS YOU
NEED IT TO SAVE YOUR LIFE, AND AT THE TIME THERE WASN'T A
GOOD ALTERNATIVE.
SO HE THINKS YOU ARE SCREWED BECAUSE YOU NEED THIS PILL.
THAT IS WHY HE TARGETED THIS.
THIS IS WHAT DRIVES ME CRAZY, HEALTHCARE IS COMPLETELY
PULLED OUT OF THE DECISION-MAKING FOR HIM.
IT'S A BUSINESS TRANSACTION FOR HIM.
THERE IS NO CARE GOING ON OR HEALTH INVOLVED.
THIS IS JUST ABOUT MONEY BEING MOVED FROM ACCOUNT TO ACCOUNT.
THAT IS WHAT DRIVES ME CRAZY ABOUT THIS KIND OF STUFF.
HEALTHCARE IS NO LONGER ABOUT HEALTHCARE, IT IS JUST
ABOUT PROFIT OVER PEOPLE.
HE'S NOT SELLING SATELLITE TVS TO PEOPLE, RIGHT?
THIS IS LIFE OR DEATH.
YES.
I HOPE THAT BECAUSE HE LOVES HIS MONEY, I HOPE HE LOSES
MONEY AND IT BOTHERS HIM SO MUCH THAT HIS BLOOD PRESSURE
SKYROCKETS AND SOMEBODY JACKS UP HIS BLOOD PRESSURE MEDICATION.
WELL, UNFORTUNATELY HE WILL PROBABLY BE ABLE TO
AFFORD IT.
LAST THING, KELLY'S POINT IS A GOOD ONE.
THAT IS WHY BERNIE SANDERS SAYS I BELIEVE IN THE CRITIC
SOCIALISM, MEANING WE HAVE TO FIGURE OUT WHAT MAKES SENSE
IN PRIVATE AND PUBLIC HANDS.
PRIVATE MILITARY IS A BAD IDEA, RIGHT?
HEALTHCARE IS A INTERESTING MIDDLEGROUND.
WE HAVE TOUGH CHOICES TO MAKE AS A SOCIETY.
YOU DON'T WANT THE GOVERNMENT MAKING SHOES OR CLOTHES.
BUT IN A CASE LIKE THIS, IT IS AN INTERESTING QUESTION
BECAUSE THE GUYS WHO MADE THE DRUG IN THE FIRST PLACE DID HAVE
A PROFIT MOTIVE.
ABSOLUTELY.
SO, THERE IS A LOT OF GOODNESS IN THE INDUSTRY,
BUT AT THE SAME TIME GUYS ARE ALLOWED TO DO THIS.
IS THERE A RULE FOR THE GOVERNMENT TO SAY THIS IS
COOL, WE LOVE THAT YOU MAKE MONEY DOING THIS, BUT THIS
IS NOT COOL AND THAT'S WHY WE NEED REGULATION.
THAT IS WHAT YOU NEED
THE GOVERNMENT FOR.