Drugs need cost controls

Friday, September 25, 2015

Hedge fund manager Martin Shkreli of Turing Pharmaceuticals raised the price of the drug Daraprim from $13.50 per pill to $750 after Turing Pharmaceuticals bought the drug from another pharmaceutical company. The drug is used to protect AIDs and cancer patients.

Publicity over the outrageous price gouging has caused the company to announce a reduction from the previously announced $750 per pill, but there was no specific price stated.

This is a particularly outrageous example of a national problem, although it is not an isolated case of a drug company extorting huge prices for essential medications.

Drug companies claim that profits go into research and development but the fact is that profits are enormous for the pharmaceutical industry. We don't advocate abandoning patent protection for developers of new medicines but along with the government granted monopoly, there need to be requirements for reasonable pricing.

In no other country is this kind of gouging allowed.