Page 82 - CL Armchair Case

Martin Shkreli

MANIPULATING

PHARMACEUTICALS

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