Page 9 - Martin Shkreli Case Study

The House Committee on Oversight and
Investigations in February 2016 who were
looking into Turing and other drug
companies' price increases. (4) cited the
following excerpts from the company's
internal documents and emails.

When Turing agreed to buy Daraprim,
company officials went into celebration
mode:

"Very good. Nice work as usual. $1bn here
we come." — Turing Chairman Ron Tilles
email dated May 27, 2015.

"I think it will be huge. We raised the price from $1,700 per
bottle to $75,000. ... So 5,000 paying bottles at the new price
is $375,000,000 - almost all of it is profit and I think we will
get 3 years of that or more. Should be a very handsome
investment for all of us." – Martin Shkreli email dated Aug.
27, 2015.

"Another $7.2 million. Pow!" — Tina Ghorban, senior director
of business analytics, reacting to a purchase order for 96
bottles at $75,000 a bottle, on Sept. 17. (4)

The US Centers for Disease Control and Prevention, estimated that
about one million people in the U.S. were infected annually with the
parasite. In their treatment patients typically take the drug, Daraprim, for
several weeks. The antibiotic is used by about 2,000 Americans each
year.

“Mr. Shkreli spent no funds on developing Daraprim, which has
been on the market for decades, he purchased it for the

purpose of increasing the price dramatically and making
hundreds of millions of dollars by exploiting its existing
monopoly before any competitors could enter the market, which
Mr. Shkreli expected would not occur for a number of years.”
(3)

Shkreli said that Daraprim had been priced too low and that his company
needed to generate profits that it would spend on new research and