Daraprim Cost: Price Increases From $13.50 to $750 Overnight, CEO Defends Move ''I Think Profits Are a Great Thing'

Turing Pharmaceuticals raised the price of the drug Daraprim, which is used to treat an infection in compromised immune systems, from $13.50 to $750 overnight.

According to the New York Times, the drug Daraprim, which was acquired by Turing Pharmaceuticals, is now being sold at more than 5000 percent higher than the price it was sold just a short while ago. From $13.50, the drug is now sold at $750 per tablet.

This case, according to the NYTimes, is an example of a relatively new business strategy which involves acquiring old, neglected drugs and then selling them at a high price. These drugs are often used for rare diseases, and are transformed by such companies into "specialty" drugs.

According to Infectious Disease News, Daraprim was first approved in 1953, which means that the drug is already 62 years old. Turing acquired the drug on Aug. 10. The drug is used to treat toxoplasmosis, which according to the Mayo Clinic, is a disease which causes flu-like symptoms, and affects those with compromised immune systems even more badly. It is often administered with a sulfonamide and leucovorin.

Turing CEO Martin Shkreli, 32, aggressively defended his company's decision to raise the price at a very high rate, even after doctors and many more have asked him to change his mind.

In an interview with CNBC, Shkreli said that the profits that they will receive from raising the drug's price will be used to develop other possible treatments to the disease. Shkreli also said that while the drug was sold at more affordable prices by different companies that owned it before, Turing had plans to raise its selling price when they acquired it for the purpose of funding more developments.

He also added that as Turing is a "small" pharmaceutical company, and is different from biotech companies that forego gaining profits for years until a new drug is injected into the market, profits are needed.

"I think profits are a great thing to sustain your corporate existence," said the CEO.

Wendy S. Armstrong, MD, FIDSA, FACP, medical director of the Ponce de Leon Center in Atlanta and vice chair of HIV Medicine Association, told IDN that the price hike will have significant effects to toxoplasmosis patients, especially those who are at high risk for complications.

Armstrong added that the price hike also caused an apparent shortage in the supply, and has affected her medical practice and various drug assistance programs.

“The supply issues have been very significant for us,” said Armstrong.

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