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  • A Look at the Legality Behind Daraprim's Price Spike Law360, New York (September 30, 2015, 12:15 PM ET)
    Portfolio Media. Inc. | 860 Broadway, 6th Floor | New York, NY 10003 | www.law360.com Phone: +1 646 783 7100 | Fax: +1 646 783 7161 | [email protected] A Look At The Legality Behind Daraprim's Price Spike Law360, New York (September 30, 2015, 12:15 PM ET) -- Turing Pharmaceuticals AG and its controversial CEO Martin Shkreli recently made headlines when Turing raised the price of its antiprotozal drug Daraprim (pyrimethamine) from $13.50 to $750 per tablet.[1] The price increase received significant media attention. Here, we evaluate Turing’s Daraprim price hike from a legal perspective, including an analysis of the mechanisms used to balance innovation and drug pricing in the U.S., and their degree of application, if any, to the drug’s recent price hike. Balancing Drug Prices and Innovation The United States has traditionally incentivized drug development innovation. Charles J. Andres Patents and the U.S. Food and Drug Administration's regulatory exclusivities allow an innovator to enjoy a protected U.S. market for a finite period of time. The market protection provided by these exclusivities helps innovators to recoup their research costs and make profits which, in part, are used to fund new research. Conversely, after the expiration of patents and market exclusivities, generic drugs can enter the marketplace. Generic drugs can ultimately cost 80 percent less than the branded drug.[2] Accordingly, U.S. laws (e.g., the Hatch-Waxman Act and Biologic Price Competition and Innovation Act of 2009) attempt to strike a balance by providing market incentives to innovators to bring new medicines to market in exchange for making generic drugs available to patients at a greatly reduced cost.
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  • Complaint: Martin Shkreli, Evan Greebel, MSMB Capital
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