Martin “Pharm Bro” Shkreli, the monster who recently became notorious for his absurd price jacking on the life-dependent drug Daraprim from $13.50 per capsule to a staggering $750 per capsule. This was a blatant case of price gouging that the sinister CEO almost seemed pleased with. Naturally, this infuriated the nation. Shkreli had jacked the price of Daraprim by 5000%, claiming the profits would go to research and development of new drugs… Research and development we haven’t seen or heard of since the prices skyrocket. At least one other CEO, Joe Panetta of Biocom, scoffed at the claim and said there was “no justification for [the price increase] other than profit.”
Daraprim is used to treat toxoplasmosis in HIV and cancer patients. It is a drug that has been around for nearly half a decade, and something that many cancer and HIV patients depend on every day. At the time Shkreli announced the price increase, Turing Pharmaceuticals was the only drug company selling this perscription on the market, which left very sick people with no other option than to fork over the dough if they wanted to keep their lives.
But recently, a rival pharmaceutical company has set out to undercut Shkreli by marketing their own generic version of pyrimathamine (Daraprim). A company based in San Diego called Imprimis Pharmaceuticals announced on October 22 that it plans to release a generic that will cost patients only $1 per capsule.In a statement, Imprimis’ CEO, Mark Baum explained:
“This is not the first time a sole supply generic drug – especially one that has been approved for use as long as Daraprim – has had its price increased suddenly and to a level that may make it unaffordable. In response to this recent case and others that we will soon identify, Imprimis is forming a new program called Imprimis Cares which is aligned to our corporate mission of making novel and customizable medicines available to physicians and patients today at accessible prices. “Today, some drug prices are simply out of control and we believe we may be able to help control costs by offering compounded alternatives to several sole source legacy generic drugs.”
The new program will work with buyers and third-party insurers to sell over 7,800 FDA-approved generic drugs at affordable prices. Imprimis Cares will operate in all 50 states. Imprimis will likely turn a huge profit, despite selling their drugs for almost nothing. Because a much greater number of people will be buying their pharmaceuticals from Imprimis, swiping business from Turing and other companies and filling his own coffers with drug money.
Imprimis’ generic is virtually identical to Daraprim, however, it does contain luecovorin, a drug given to chemotherapy patients. While the new generic has not yet been approved by the FDA, all of its components have been. A doctor can therefore prescribe it, and the patient can order it through Imprimis’ website. Capitalism isn’t always a even-handed beast, but when someone as blatantly corrupt and amoral as Shkreli tries to cheat the system this big, the checks and balances start to kick in. If Imprimis is successful in their endeavor Shkreli will probably lose all of his business – even if he relinquishes the absurdly high prices for something more realistic.