Page 16 - Martin Shkreli Case Study

was considered essential, internal company documents show. Last May,
as the company did its due diligence before the purchase, one executive

warned in an e-mail that new, high copays would force toxoplasmosis
patients to seek alternative drugs.

“We want to avoid that situation,” wrote Nancy Retzlaff, Turing’s chief
commercial officer. “The need to address copay assistance is a key
success factor.’”

Having made Daraprim much more costly, Turing was offering to make it
more affordable.

Patient Services Inc.,” which runs similar programs for more than 20
diseases, jumped at Turing’s offer and suggested the company kick
things off with a donation of $22 million, including $1.6 million for the

charity’s costs. That got Turing’s attention. “Did you see the amounts???
$22MM!!!” wrote Tina Ghorban, Turing’s senior director of business
analytics, in an e-mail to a colleague.” (7)

Turing ultimately agreed to contribute $1 million for the patient fund, plus
$80,000 for PSI’s costs.

However, given that charitable donations are tax deductible the models
in Diagram 1 suggest an alternative solution that might have been
strategically more appealing?

Diagram , ref (7)