>> MARTIN SHKRELI IS THE CEO OF
TURING PHARMACEUTICALS
WHICH IS A PHARMACEUTICAL
COMPANY THAT RECENTLY
PURCHASED A DRUG KNOWN AS
DARAPRIM AND RAISED THE
PRICE FROM $13.50,
TO A WHOPPING $750 PER TABLET.
THIS IS A DRUG THAT
TREATS TOXOPLASMOSIS.
IT IS A DRUG THAT TREATS THOSE
WHO HAVE A PARASITIC INFECTION.
HE RAISED THE PRICE FOR THAT AND
MANY WERE UPSET, INCLUDING
HILLARY CLINTON THAT
TWEETED ABOUT IT.
SHE SAID, "PRICE GOUGING LIKE
THIS IN THE SPECIALTY DRUG
MARKET IS OUTRAGEOUS.
TOMORROW I'LL LAY OUT A
PLAN TO TAKE IT ON."
SHE'S BASICALLY GOING TO GO
AFTER THIS AND NOT ALLOW
PEOPLE TO PRICE GOUGE SHOULD
SHE GET ELECTED AS PRESIDENT.
INTERESTINGLY ENOUGH, CBS
INTERVIEWS HIM AND THEY
WANT TO GET HIS TAKE ON THIS.
HERE IS WHAT HE HAD TO SAY.
TAKE A LOOK.
>> WHY WAS IT NECESSARY TO RAISE
THE PRICE SO DRASTICALLY?
>> DEPENDS ON WHAT HOW YOU
DEFINE DRASTIC.
THE DRUG WAS UNPROFITABLE
AT THE CURRENT PRICE.
ANY COMPANY SELLING IT
WOULD BE LOSING MONEY.
AT THIS PRICE, IT IS A
REASONABLE PROFIT, NOT
EXCESSIVE.
>>DARAPRIM WAS DEVELOPED IN
1953 AS THE TREATMENT FOR
TOXOPLASMOSIS, AN INFECTION
CAUSED BY A PARASITE.
IT COMES FROM DRINKING
CONTAMINATED WATER,
CONTAMINATED MEAT, AND AFFECTS
THOSE WITH COMPROMISED
IMMUNE SYSTEMS LIKE AIDS AND
CANCER PATIENTS.
WHEN THE PHARMACEUTICAL COMPANY
RAISED THE PRICE TO $750
PER PILL, THE AVERAGE COST OF
TREATMENT FOR PATIENTS ROSE
FROM ABOUT $1130-$63,000.
FOR CERTAIN PATIENTS THE COST
CAN RUN AS HIGH AS $634,000.
>>
THIS DRUG IS USED BY A SMALL BUT
VULNERABLE GROUP OF PATIENTS.
YOU SEE HOW GREEDY
THIS MOVE LOOKS?
>>YES, I CAN SEE HOW IT LOOKS
GREEDY, BUT THERE ARE A LOT
OF ALTRUISTIC PROPERTIES TO IT.
>> IN WHAT WAY?
>>ONE EXAMPLE IS THAT THIS IS A
DISEASE WHERE THERE HASN'T
BEEN ONE PHARMACEUTICAL COMPANY
FOCUSED ON FOR SEVEN YEARS.
WE ARE NOW A COMPANY THAT IS
DEDICATED TO THE TREATMENT
AND CURE OF TOXOPLASMOSIS.
WITH THESE PROFITS WE
CAN SPEND ON THESE PATIENTS
WHO NEED A NEW DRUG.
>> I GUARANTEE YOU HE WILL
NOT MAKE A NEW DRUG.
>> ALSO, THERE IS AN OFFICIAL
THAT MADE A GOOD POINT.
HE SAID EVEN IF HE IS NOT LYING
AND IS PLANNING ON USING
THE PROFITS TO CREATE A NEW
DRUG, A, WE DON'T NEED A
NEW DRUG BECAUSE THIS
PILL WORKS FINE.
AND B, IF YOU NEEDED TO DEVELOP
A NEW DRUG THAT IS MORE
EFFECTIVE, YOU SHOULD NOT BE
TAXING THE CURRENT VICTIMS
OF THIS DISEASE.
YOU ARE SUPPOSED TO ONLY CHARGE
THEM FOR WHAT THEY NEED IN
ORDER TO SURVIVE OR FIGHT
WHATEVER THEY HAVE.
THAT IS A GREAT POINT THAT I
WISH I THOUGHT OF YESTERDAY.
>> THIS IS A TERRIFIC
REPORT BY CBS FOR THIS.
IF YOU DON'T HAVE HEALTH
INSURANCE, YOU ARE DONE.
HE IS GOING TO BANKRUPT YOU AND
TAKE EVERY DOLLAR YOU HAVE
IN YOUR POCKET.
IF YOU RUN OUT AND CAN AFFORD IT
ANYMORE, I DON'T KNOW WHAT
HAPPENS TO YOU THEN.
>> YEAH, WHAT HAPPENS?
THIS IS NOT THE FIRST
TIME HE'S DONE THIS.
HE USED TO BE THE CEO OF A
DIFFERENT COMPANY.
THEY BOUGHT THE RIGHTS TO A DRUG
THAT HELPS THOSE WHO HAVE KIDNEY
DISEASE.
IT HELPS PEOPLE THAT
HAVE KIDNEY STONES REGULARLY.
HE BUYS THE DRUG AND TAKES IT
FROM ONE DOLLAR PER TABLET TO
$30 PER TABLET.
PEOPLE WHO WOULD PAY AROUND
$50,000
FOR THIS TREATMENT, END UP
PAYING WELL OVER $100,000.
THIS IS NOT HIS
FIRST TIME DOING IT.
HE DIDN'T REALLY GET A LOT OF
NEGATIVE PRESS WHEN HE DID
IT THAT TIME.
THE REASON HE IS GETTING
NEGATIVE PRESS NOW IS
BECAUSE THE PRICE GOUGING IS SO
OUTRAGEOUS, THAT PEOPLE ARE
RAISING RED FLAGS.
>> THAT PILL WAS MARKETED
JUST BACK IN 2009 FOR A DOLLAR.
NOW IT IS $750.
I AM A CAPITALIST, I BELIEVE IN
THE MARKETS AND THE FREE MARKET.
I BELIEVE THEY ALSO HAVE TO BE
REGULATED SO THAT YOU DON'T
HAVE MONOPOLIES.
WHAT I DON'T BELIEVE IS HAVING
NO RULES IN CAPITALISM.
THE ROBBERS LOVE IT WHEN YOU
TAKE AWAY THE COPS.
WE HAVE GONE TO A PLACE WHERE
IT IS BASICALLY ANARCHY.
THERE ARE NO RULES.
SO GUYS LIKE
THIS COME IN AND TAKE ADVANTAGE.
WELCOME TO UNCHECKED CAPITALISM
WHERE THERE ARE NO RULES.
>> I LOVE STORIES LIKE THIS,
IT PROVES HOW IMPORTANT
REGULATION IS.
THERE ARE PEOPLE WHO BELIEVE IN
THE FREE MARKET SYSTEM WITH
NO REGULATION.
THEY THINK ANARCHY MAKES ALL THE
SENSE IN THE WORLD BECAUSE
THE FREE MARKET IS GOING TO
DECIDE WHAT HAPPENS WITH
THESE PHARMACEUTICAL COMPANIES
AND CORPORATIONS.
PEOPLE ARE SMART, THEY ARE NOT
INHERENTLY EVIL AND GREEDY,
SO THEY WILL DO THE RIGHT THING.
THAT IS NOT THE CASE.
THESE CORPORATIONS AND
PHARMACEUTICAL COMPANIES
HAVE NO MORALITY WHATSOEVER.
WHEN IT COMES TO A BOTTOM LINE
THEY WILL DO WHATEVER IS
NECESSARY TO TURN A PROFIT.
THAT IS EXACTLY WHAT IS
HAPPENING HERE.
>> EVEN IF YOU HAD A LIBERTARIAN
UTOPIA, WHICH YOU DON'T,
HE'S GOING TO KEEP CHARGING
THIS FOR AS LONG AS HE CAN.
HE DOESN'T CARE ABOUT THE COST
OF LIVES AND WELL-BEING.
BUT EVEN IF YOU HAD 
A
LIBERTARIAN UTOPIA,
ñ LET'S SAY COMPETITION WILL
BRING DOWN THE PRICE EVENTUALLY,
IN THE MEANWHILE, HOW MANY LIVES
ARE GOING TO BE LOST OR BANKRUPT?
HOW LONG DID THAT PROCESS TAKE?
IN THE MEANWHILE, LOOK, YOU
SHOULD'VE KNOWN BETTER, THE
FREE MARKET.
NO, THAT DRUG SAVES THEIR LIFE.
FREE MARKET IS RIGHT, BUT
WHEN YOU PERVERT THE FREE
MARKETS BY TAKING AWAY ALL
BOUNDARIES AND ALL
REGULATIONS, NOW WHAT WE HAVE
LEFT IS NOT A FREE MARKET,
WE HAVE CRONY CAPITALISM
AND ANARCHY.
