Drug Goes From $13.50 a Tablet to $750, Overnight

SrA Edward Vong — Wed, 23 Sep 2015 09:10:36 -0400

I am neither for, nor am I against capitalism. I am for a moderation of how things should work ethically. This is a perfect example of using loopholes to exploit capitalism.

I believe at this point the CEO has change the price back over threats and an outrage. But what do you guys think?

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Response by SGT Ben Keen made Sep 23 at 2015 9:12 AM

SGT Ben Keen — Wed, 23 Sep 2015 09:12:41 -0400

That pill better cure everything on the face of the earth and then some and do it quickly!

Response by Sgt Aaron Kennedy, MS made Sep 23 at 2015 9:24 AM

Sgt Aaron Kennedy, MS — Wed, 23 Sep 2015 09:24:45 -0400

Little info on this.

The guy is what can be best called a "profiteer" as in someone who is intentionally driving the price up to make an "unfair or excessive profit."

He believes that saving someone's life should cost "at a minimum $100,000" and the drug as previously sold was doing it for about $1000.00. So, he bought an existing "Patent Process" and jacked up the prices.

I'm all for capitalism. Very Pro-Capitalism. Make your money, make a profit. Don't bleed people to do it. That's the line, and this guy crossed it.

Now, the problem we run into is that there are LOTS of these type drugs that were developed in the 50s-70s, and they are dirt cheap to make if you have the production capability. Not many companies make them, because they're dirt cheap to make, and hence slim profits, and why compete and drive the profits down. So what you do is you buy up the competitors (licenses) and you become a monopoly. Now you are the only one with the capability of making it.

This created a "barrier of entry" even though the patent is expired on the drug itself (not the process), which means that even if someone else copies the drug, and tries to compete at the new higher price, this yahoo, can tank the market and effectively kill his competition.

Example: Pill costs $20.00. 5 companies on market that make it. Buy all patent processes. Raise price to $1000.00. New company comes in, after R&D to develop new process, they have to market pill at $50.00+ to make money. First company just drops price back to original $20.00 if second company even attempts to sell it. Second company is effectively barred from entry. We see it a lot with telecommunication companies as well.

So what's the cure? US Government has to step in. I hate that answer. But this is where we need a "Referee" to call foul.

Response by 1SG Charles Hunter made Sep 23 at 2015 9:41 AM

1SG Charles Hunter — Wed, 23 Sep 2015 09:41:02 -0400

Surely, after sixty-two years, this medication is off patent. No generic version?

Response by MAJ Private RallyPoint Member made Sep 23 at 2015 9:43 AM

MAJ Private RallyPoint Member — Wed, 23 Sep 2015 09:43:23 -0400

First - he came out yesterday stating he will lower the price (which wasn't mentioned) to a "reasonable" price in which he can still make profit. Not sure what "reasonable" is in his mind, since he thought an increase of $736.50 was reasonable overnight.

Secondly, I don't see this as a capitalism fail...I see it as a greedy individual exploiting a popular item vs gradually increasing cost to be competitive. Greedy individuals will always exploit loopholes, cut corners and circumvent standards - regardless of what regulations or sanctions are in place.

Response by MSG Private RallyPoint Member made Sep 23 at 2015 9:48 AM

MSG Private RallyPoint Member — Wed, 23 Sep 2015 09:48:57 -0400

Ok, yea I read about this guy. Pretty much a worm. Yes I am all about getting yours and being successful. But, even if he wanted to ensure a profit, even tagging the pills at 50 bucks a pop would certainly gain him a healthy profit. He just wants to be as rich as possible as soon as possible and obviously doesn't care about people. Only himself. Worm.

Response by LCDR Private RallyPoint Member made Sep 23 at 2015 10:34 AM

LCDR Private RallyPoint Member — Wed, 23 Sep 2015 10:34:58 -0400

In theory I support capitalism, and in most forms I actually do. However as you mentioned in this case ethics are involved. That doesn't mean we aren't supportive of capitalism, it means we aren't supportive of someone KILLING people to make more money. That is exactly what would happen in this situation.

Also there is a reason price gouging laws are in place and if he hadn't changed the price back he would have eventually gone to prison. He still may.

Response by MCPO Roger Collins made Sep 23 at 2015 10:42 AM

MCPO Roger Collins — Wed, 23 Sep 2015 10:42:59 -0400

It may not be the Christian was of thinking, but it would be terrible if that little weasel got some exotic disease that had a cure he couldn't afford. It's all about the patent laws regarding Pharmaceutical companies, they do need to cover the humongous costs of development and testing of the new drugs or they will stop doing research. That being said, Congress or the
FDA should be able to determine the costs associated with those activities and ensure they are recovered during the seven years they hold exclusive patent rights or have some metric that says how much the taxpayer needs to kick in.

Response by SrA Edward Vong made Sep 23 at 2015 10:44 AM

SrA Edward Vong — Wed, 23 Sep 2015 10:44:50 -0400

This case can be similar to patent trolling. Considered legal, but unethical.

Patent Trolls

The U.S. Patent System is supposed to represent a bargain between inventors and the public. In theory, it is simple: in exchange for dedicating a novel invention to society, along with a clear explanation of how to practice that invention, a patent applicant gets a 20-year monopoly. But, lately, we’ve watched as the system appears to fall apart, harming innovation, the very thing it was designed to foster. Many factors contribute to the...

Response by 1LT Private RallyPoint Member made Sep 23 at 2015 11:56 AM

1LT Private RallyPoint Member — Wed, 23 Sep 2015 11:56:07 -0400

The real issue is foreign governments and their inability or/and lack of policing copywrite, trademarks, and patents infringements. Why make anything if your hard work will be stolen?

Response by Cpl James Waycasie made Sep 23 at 2015 12:05 PM

Cpl James Waycasie — Wed, 23 Sep 2015 12:05:55 -0400

I think greedy people will not hesitate to stoop to any level to make a dollar.

Response by CPT Pedro Meza made Sep 23 at 2015 1:14 PM

CPT Pedro Meza — Wed, 23 Sep 2015 13:14:01 -0400

I do not know what the medication is used for, but I am sure that there are alternative medications that a doctor can prescribe which can easily replace this expensive drug. In fact medication combined with a healthy diet and exercise will work wonders.

Response by SFC Private RallyPoint Member made Sep 24 at 2015 4:50 PM

SFC Private RallyPoint Member — Thu, 24 Sep 2015 16:50:39 -0400

Gread !!! he needs to realize that by helping people he will become emotionaly ritch.

Response by LTC Private RallyPoint Member made Sep 25 at 2015 10:47 PM

LTC Private RallyPoint Member — Fri, 25 Sep 2015 22:47:22 -0400

All about the benjamins!