I have heard for years that the idea in the marketplace is to buy low and sell high. You don’t want to lose money; the game is to get rich. Find a demand and fulfill it. We are in America; opportunities are all around us. It is even better when you are the only show in town because you can shorten the supply and increase the price. The key is the demand. Drug dealers know this all too well—get them hooked, and spike the cost. Many so-called legitimate companies operate on the same plane as illegal drug dealers—the economics are the same, it’s just that in the case of street drugs, the product is illegal.
The New York Times is reporting that a drug company called Turning Pharmaceuticals, founded by Martin Shkreli, a former Albanian hedge fund manager, purchased a 62-year-old drug called Daraprim. Although this drug has been around for a long time, the Times says it is considered “the standard of care for treating a life-threatening parasitic infection”. The drug was helping a lot of people and was available for about $13.50 a tablet. That was until the Turning company got control of it—they raised the price to around $750 a tablet. Get the picture?—the Demand is still there—only show in town—raise the price by several thousand percentage points! Why not, it appears to be legal. If people are sick, they will pay. According to FierceBiotech, this is not Shkreli’s first rodeo when it comes to such wonderful drug transactions. Can you really blame the man though? Founders and CEO’s have to protect their shareholders. This is a for-profit business. Other companies are doing the same thing. The added revenue might be used towards the development of new drugs; the cost of research and development for new drugs can be astronomical—FDA approval does not come cheap. Better to focus on older and approved drugs that are off the patent clock.
I remember my grandpa use to bitch about the price of an aspirin in the hospital—a tablet cost $1.oo there, and 1 cent at the local drug store when purchased in quantities of 50. That didn’t seem fair to grandpa. I don’t have to wonder what he would have thought of the $750 tablets, it would have upset him. That is if he had the time to think about such matters—he was usually working in his small farm fields, laboring dust to dawn—making an honest dollar. Where are you, Bernie Sanders?