#1 Company That Upped Drug Price By 5,000% loses millions.
Posted: Tue Nov 24, 2015 2:34 am
iflscience
Hmmmmm that's good karma!Turing Pharmaceuticals has reported a $14.6 million (£9.6 million) net loss in their third-quarter, from July to the end of September, this year.
In mid-August, the pharmaceutical company purchased the rights of Daraprim and raised the price by over 5,000 percent, making the cost of the pill rocket from $13.50 (£8.70) a tablet to $750 (£485). The drug is used by patients with AIDS or cancer to fight the Toxoplasma gondii parasite. More than 60 million Americans carry the parasite without coming to harm, but it can lead to seizures, blindness or neurological damage to those with a compromised immune system.
Medical groups, politicians and the public were understandably outraged at the move, while CEO Martin Shkreli became an online piñata.
Turing Pharmaceutical’s recent financial report showed that the net revenue on Daraprim and blood pressure drug Vecamyl was $5.6 million (£3.6 million). Defending the losses, the company also stressed that most of their money has been going into investment, expecting to spend 60 percent of their revenue on development and research towards their drugs.
Part of this development will be an intranasal formulation of ketamine to treat post-traumatic stress disorder and depression.