Turing Pharmaceuticals, the company that purchased AIDS medication Daraprim and raised its price by 5,000 percent, reported losses of $14.6 Million in the third quarter of 2015, which lasted from July to September.
Turing Pharmaceuticals and its outspoken CEO Markin Shkreli became infamous after purchasing Daraprim, a drug used to fight infection in AIDS and cancer patients, and raising its price from $13.50 to $750. Shkreli and his company became a punching bag online, especially after Shkreli’s unapologetic public appearances
Shkreli has maintained that the steep price increase would fund development of the drug. The spending report shows that the company has spent millions of dollars developing the drug by improving it and finding more uses for it. The company defended their quarterly losses by stating that most of their money was spent on research, development, and investment.
I've heard disturbing rumors of capitalists infiltrating the pharmaceutical industry.
— Martin Shkreli (@MartinShkreli) November 17, 2015
It appears from the financial data that Shkreli was being honest when he said that he was raising the price of Daraprim to fund research for the drug. Shkreli was able to purchase the rights for Daraprim and raise its price dramatically since his company is the only one making the medication. Still, Shkreli raised the price of a drug that fights blindness and seizure causing parasites. Raising the price by 5,000 percent irresponsibly put thousands of people at risk.
Turing Pharmaceuticals is projected to lose money for some time, as it is primarily a drug research company, that buys rights for older medications. The company plans to develop and improve the drugs, but it also has the power to raise prices in a similar fashion to Daraprim.
Featured image via Twitter