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Martin Shkreli's Infamous Drug Price Hike


Martin Shkreli, often dubbed "Pharma Bro," became one of the most infamous figures in the pharmaceutical industry—and a symbol of corporate greed—after his company, Turing Pharmaceuticals, acquired the rights to Daraprim, a life-saving drug used to treat toxoplasmosis, a parasitic infection that can be deadly for people with weakened immune systems, such as HIV/AIDS patients and cancer survivors. In 2015, Shkreli made headlines when he raised the price of Daraprim from $13.50 per pill to $750, an increase of over 5,000%. The move sparked widespread outrage, not just from patients and advocacy groups but from the general public, politicians, and even other pharmaceutical executives, who called the price hike unjustifiable and exploitative. What made Shkreli particularly notorious wasn’t just the price increase itself, but his defiant and often mocking attitude in response to the backlash. Rather than showing remorse or attempting to justify the decision with typical corporate rhetoric about research costs or market dynamics, he leaned into his villainous image. He smirked through congressional hearings, bragged about his wealth on social media, and trolled critics with sarcastic remarks. At one point, he even livestreamed himself browsing eBay for rare Wu-Tang Clan albums while ignoring questions about the drug’s pricing. His online persona—brash, unapologetic, and seemingly reveling in the public’s hatred—only fueled the fire. Behind the scenes, Shkreli’s business practices were equally controversial. Before Turing, he had run hedge funds and another biotech firm, Retrophin, where he was later accused of using company funds to pay off disgruntled investors—a scheme that eventually led to his conviction for securities fraud in 2017. Though the Daraprim scandal wasn’t part of the charges, it cemented his reputation as a figure who prioritized profit and self-interest over ethics or patient welfare. The Daraprim case also reignited debates about drug pricing in the U.S., where pharmaceutical companies have significant leeway to set prices, often leaving patients and insurers struggling to afford critical medications. While Shkreli was far from the only executive to engage in aggressive pricing strategies, his blatant disregard for public sentiment made him a lightning rod for criticism. In the end, his downfall came not from the drug pricing scandal but from his financial misdeeds. He was sentenced to seven years in prison, though the Daraprim controversy remains the defining chapter of his infamy. Even after his imprisonment, the name "Martin Shkreli" continues to be shorthand for corporate greed and the excesses of the pharmaceutical industry.

(1) Comments
Davidm8624
Davidm8624
1744314313

there are 2 solutions to this problem. 1: government controlled pricing. this could be good as it enables a board to determine what "fair prices" are. However regulation of these large corporations could lead to more corruption and lobbying from pharma to get favorable laws. 2: deregulate who is able to provide medicine and prevent life saving meds from being patented so that multiple producers can compete. This however can lead to low quality medicine from sketchy providers being introduced to the market. I believe solution 1 will lead to more of what we have right now in the long run. as more large pharma businesses acquire patents and licenses there will be less competition and lobbying will keep prices high. Solution 2 risks introducing poor quality medicine into the marketplace with deadly consequences while the bad producers get filtered out over time. It would be better in the long run but is less likley to happen as the politicians will be paid to make sure this method will never exist as it could cost the large producers much of their profits.


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