Specialists in infectious disease are protesting a gigantic overnight increase in the price of a 62-year-old drug that is the standard of care for treating a life-threatening parasitic infection.

 

The drug, called Daraprim, was acquired in August by Turing Pharmaceuticals, a start-up run by a former hedge fund manager. Turing immediately raised the price to $750 a tablet from $13.50, bringing the annual cost of treatment for some patients to hundreds of thousands of dollars.

 

“What is it that they are doing differently that has led to this dramatic increase?” said Dr. Judith Aberg, the chief of the division of infectious diseases at the Icahn School of Medicine at Mount Sinai. She said the price increase could force hospitals to use “alternative therapies that may not have the same efficacy.”

 

http://mobile.nytimes.com/2015/09/21/business/a-huge-overnight-increase-in-a-drugs-price-raises-protests.html?referrer=

Where is Obamacare to stop this from happening?

We are a free-market society, correct?

Talk about price gouging. And I bet $100 to a doughnut that there is no generic to it (didn't read the article) as others who would have made generic forms probably didn't think there was any money in it, so these guys, at least for the time being, are the only ones making it. This guy knows that and is taking advantage.

Where is Obamacare to stop this from happening?

 

Collecting all the profits in the campaign funds.

We are a free-market society, correct?

Government wants to regulate everything else, this is where reform could have, and should have, started. But I digress.

We are a free-market society, correct?

 

Not when a specific vendor has a monopoly on a product.

Government wants to regulate everything else, this is where reform could have, and should have, started. But I digress.

 

Aren't medical professionals in the same boat? They can either choose to participate in an insurance plan and play by the rules set forth or they can do their own thing, correct?

 

Don't insurance companies negotiate with pharmacy companies on reimbursements?

Not when a specific vendor has a monopoly on a product.

 

Monopoly as in no other company has entered or monopoly as in laws prevent competition?

Talk about price gouging. And I bet $100 to a doughnut that there is no generic to it (didn't read the article) as others who would have made generic forms probably didn't think there was any money in it, so these guys, at least for the time being, are the only ones making it. This guy knows that and is taking advantage.

 

This is an old drug that has been used forever and is the generic form as its off patent now. The thing that's different about it though is that its distribution is tightly controlled which makes it harder for other drug manufacturers to get into making it.

 

It's still RARELY used which means it's not exactly high in the list for other companies to get on board to make it as they will see little return from it. It's like anything else, if there isn't much if a market for it then they won't make it. So this allows the one drug company who owns it and already makes it to set whatever price they want for it. Add into the fact that it's distribution is highly regulated and it makes it even harder for another company to get into making it even if they wanted to.

 

You see this drug more commonly at a hospital/inpatient level than a retail setting so they will be able to get it a little cheaper but it's still not cheap by any means.

R

Aren't medical professionals in the same boat? They can either choose to participate in an insurance plan and play by the rules set forth or they can do their own thing, correct?

 

Don't insurance companies negotiate with pharmacy companies on reimbursements?

 

Insurance companies negotiate with pharmacies saying what they will reimburse covered drugs for through a patients insurance but if it's not enough to offset the acquisition cost from the pharmacy's supplier that leaves the pharmacy taking a loss. See the Express Scripts/Walgreens incident from several years ago in 2011.

Edited September 21, 201511 yr by Show Stopper

5,500% increase overnight, and the guy still has the nerve to say that the pill is still under priced.

 

Aids patients use this drug as well.

Monopoly as in no other company has entered or monopoly as in laws prevent competition?

 

Well considering the a government agency would have to approve a new company to make said drug..................you do the math.

Well considering the a government agency would have to approve a new company to make said drug..................you do the math.

 

Are you saying other companies have tried to create an alternative but were denied?

had an rx for good old fashion Erythromycin today .. was surprised to see this rather old routine antibiotic was now 1200.00 $ a 100 . The sad news is I could list dozens and dozens of products that have went up 100-3000 % the past 12 months . Most companies state " we fear price controls in the future and are raising the price now before the govt takes over " Also this gouging by generic companies is leading to a huge huge increase in total RX spending . Medicare part D for the elderly and Medicaid which are already stretched are going to be ran broke by this gouging of generic drug companies . Another angle is that buying at the " old" generic price and stocking up on it by buying a year or more worth and praying to get reimbursed by Insurance companies at the " new" inflated price is all thats keeping a huge number of independent pharmacies open . We are not enough to stay open on the majority of rxs filled . Just filled a months worth of Blood Pressure pill for a Pt .. was paid a total of 1.08 $ ... thats our reality .