Page 396 - The Case Lab Book

an insurance policy and paid by an insured person each time a medical
service is accessed.

“We’ve agreed to lower the price of Daraprim to a point that is more

affordable and is able to allow the company to make a profit, but a very
small profit, and we think these changes will be welcome.”

However, events were beginning to move against Shkreli

"As early as next week, the Board should remove Martin as CEO. ... the
price drop has to be significant and tied to something. ... This cannot be

seen as something that appears to be as arbitrary as the price hike in the
first place." — Outside PR consultant, Oct. 8. (4)

Moreover, earlier in the month, New York Attorney General Eric
Schneiderman's antitrust bureau said it was investigating Turing
Pharamaceuticals over concerns that the company might be 'unlawfully'

restraining competition.

It was thought that Turing was reportedly doing this by distributing
Daraprim through a limited number of specialty pharmacies in order to
prevent generic manufacturers from obtaining access to samples to make

their own version.

Price Competition

In the face of his massive price hike, the obvious solution is for someone to
undercut his price - especially since Daraprim is fairly simple to make - but
thanks to the complex rules governing drug sales in the U.S., that’s not so

easy. A potential competitor would have to go through the arduous process