Wednesday, September 23, 2015

CEO who raised price of drug by 5000%

I know everyone is hating on this guy, but here is my view on the whole thing. So yeah this guy may be a prick, but from purely an economic sense, what he did might not be so terrible. The patent that Turing Pharmaceuticals purchased is for Daraprim, and from what I know, the patent is actually expired, all he bought was the right to sell the branded drug. No one is producing it generically - yet. With the massive price hike surely some pharmaceutical companies will come in with generic versions of Daraprim and undercut Turing's prices and increase supply until there is competitive equilibrium. What do you think?

link: http://ift.tt/1jaUDvL