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

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.

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

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.

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?

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.

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.

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.

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.

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

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