Page 2 - Martin Shkreli Case Study
P. 2
Martin Shkreli
MANIPULATING
PHARMACEUTICALS
Introduction
The main events of this case take place over the period of August 2015
to July 2016 and charts the actions of Martin Shkreli the CEO of both
Turing and KaloBios Pharmaceuticals who claims, his goal is to invent
new drugs for rare diseases. Shkreli however, has a talent for identifying
small biotech companies, some of which thrive thanks to loopholes, legal
frauds, pipe dreams, and stock promoters and some with a smattering of
real science. In the case of Turing, after its acquisition, he increased the
price of its primary product, Daraprim by 5000% which generated hostile
political and media pressure.
Prior to the price rise in September 2015, one tablet of Daraprim cost
$13.50 (£8.70) in the US. After the rise one tablet of Daraprim costs
$750 (£488).
Daraprim is known generically as pyrimethamine and was first approved
by the Federal Drug Administration in 1953
He followed this up by acquiring KaloBios and saw its share price rise
from $1 to $44 in just two weeks.
