r/news Jan 14 '22 Silver 19 Gold 1 Helpful 19 Wholesome 18 Evil Cackle 3

Shkreli ordered to return $64M, is barred from drug industry

https://apnews.com/article/martin-shkreli-daraprim-profits-fb77aee9ed155f9a74204cfb13fc1130
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u/Gingorthedestroyer Jan 14 '22 Silver Gold Helpful Take My Energy Starry

Let’s do insulin producers now.

178

u/droi86 Jan 14 '22

See, he marking up the medicine, was totally cool, but he stole money from rich people which is a big no-no

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u/lomelyo Jan 14 '22

Regarding Pharmaceuticals the only difference between him and other companies is that he didn't have a PR team. And more important medicines than Daraprim are ruining life the life of people and Congress doesn't do anything because it's more difficult.

I think that guy deserves what he got; but it bothers me when justice is only applied to one person. Because then I don't know if it's really justice or just a witch hunt.

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u/wheres-my-take Jan 14 '22

to be accurate about the price gouging, it was only for companies that had it covered under insurance. it was given out to others per requests for free. of course this drives up premiums in theory, which is bad, but the justification was it was for funding medicines that weren't profitable, like for overlooked diseases.

also, he didn't steal from rich people, per se. He paid back investment money out of his own pocket because the investments didn't get a return. you can't do that because it looks like your investment was actually good.

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u/resistible Jan 14 '22

"to be accurate about the price gouging, it was only for companies that had it covered under insurance."

This isn't true. He charged hospitals that amount as well, and then later offered hospitals a 50% discount when he started taking heat for it from them. His company also does not actually do any of the pharmaceutical research, he just buys rights to medicines and sells them for more money than what they previously had been sold for.

He's literally a failed investor that tried to run life-saving medicine like it's a stock. There's nothing heroic or even favorable about his behavior.

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u/varateshh Jan 14 '22

He was not a failed investor before before he tried to go full villain mode. All he had to do was hike up the prices and keep his mouth shut and it would be a run-of-the-mill pharma company. But he wanted fame or to demonstrate the hypocrisy of current pharma industry. That stuff they nailed him on was dug up after he made a spectacle.

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u/johnnynutman Jan 14 '22

He was not a failed investor before before he tried to go full villain mode.

isn't that why he went to prison? it was cos he was running a ponzi scheme iirc.

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u/RedditSmokesCrack Jan 15 '22

His old investment had failed and he used his profits from his new investment to pay back the old one. Not exactly a ponzi scheme and nobody really was losing money he just technically shuffled it around in an illegal way and that's why he went to jail. Plenty of people have done much much worse

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u/thorscope Jan 14 '22

Turing/ Vyera hasn’t had a drug be approved by the FDA, but they have FDA filings and they had projects fast tracked by the FDA prior to Shkrelis arrest.

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u/resistible Jan 15 '22

Which ones? I’d like to know more.

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u/plarc Jan 14 '22

Can you explain to me how, does it work? If a patient can buy his medicine for 1.5$ but the hospital has to pay 750$ what stops the patient from buying his own medicine instead?

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u/t3a-nano Jan 15 '22

Same thing that prevents patients being billed $200 per Advil.

Absolutely nothing, other than the fact they they refuse to tell you prices up front in the hospital.

It’s all in a surprise bill you get several weeks later.

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u/resistible Jan 15 '22

Adding to the other response you got, the medicine I’m referring to is called Daraprim, and has been around for decades. So no research or testing or development of the drug is needed and we already know what it does. When Shkreli purchased the rights to Daraprim, he immediately increased the price from $13.50 per pill to $750 per pill. His explanation for the increase? “Capitalism at work.”

So he’s not a researcher, scientist, or doctor. He’s a failed hedge fund manager who was convicted of securities fraud in relation to the failed hedge fund.

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u/mightylordredbeard Jan 15 '22

People really don’t understand what he did or why he did it.

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u/resistible Jan 15 '22

Sure we do. He’s not a mystical person. He bought rights to a pill (Daraprim) that had been around for decades and increased the price of that pill from $13.50 per pill to $750 per pill. That price change was explained by Shkreli as “capitalism at work.”

He told you right there what he did and why: GREED.

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u/FireBeyond Jan 14 '22

His company didn't actually produce any drugs. They bought patents and then jacked up prices. He's a hedge fund investor, not a medical professional.

He'd also lobby the FDA to not approve drugs, not on medical or safety or other grounds, but purely because they competed with drugs he'd bought patents on, and threatened to cut his profits.

Any Shkreli Robin Hood stories are PR spin.

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u/wheres-my-take Jan 15 '22

well i don't mean to claim he's some altruist, but the hedge funds invest in R&D and this is how investments are dispersed. The patent shit is gross, but thats the way our IP system works, its not unique to him