Drug Price Gouging Enters Spotlight as Candidates Take on Big Pharma

http://www.commondreams.org/news/2015/09/22/drug-price-gouging-enters-spotlight-candidates-take-big-pharma

On Sunday, Turing Pharmaceuticals increased overnight the price of Daraprim, a malaria medication, from $12.50 to $750 a pill. Around the same time, a separate drug company, Rodelis Therapeutics, sent the cost of tuberculosis drug Cycloserine from $15 to $360 a pill.

After ensuing outrage, Rodelis rescinded the increase and handed Cycloserine back to the nonprofit organization from which it had purchased ownership of the drug brand. But Turing refused to back down.

Turing CEO Martin Shkreli defended his company's actions from widespread criticism, telling Bloomberg TV about the Daraprim decision, "This drug saves your life for $50,000. At this price, it's a no-brainer."

Shkreli's actions and cavalier defense did little to soothe public furor. But among the continued outcry, some politicians stepped up with their own solutions to the issue of unregulated medication costs.

Hillary Clinton on Monday tweeted, "Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on."

While the official plan will not be unveiled until the Democratic presidential candidate's speech in Iowa later Tuesday, early reports indicate that it would force pharmaceutical companies to reinvest profits into disease and treatment research and allow Medicare to lower and cap out-of-pocket expenses for consumers.

Bernie Sanders, Clinton's current chief rival for the nomination, has also sponsored legislation that would allow Medicare to negotiate drug prices with pharmaceutical companies. Many of the provisions in his bill are echoed in Clinton's new plan.

Sanders also sent Turing a letter on Monday demanding information on the company's price hike.