Martin Shkreli and Daraprim

Definition

Martin Shkreli is a former pharmaceutical executive known for raising the price of the life-saving drug Daraprim by more than 5,000% overnight. This incident became a focal point in discussions about access to medicines and the ethics surrounding drug pricing, highlighting the tension between profit motives in the pharmaceutical industry and the need for affordable healthcare.

5 Must Know Facts For Your Next Test

1. Martin Shkreli became infamous in 2015 when his company Turing Pharmaceuticals acquired Daraprim and raised its price from $13.50 to $750 per pill.
2. Daraprim is used to treat toxoplasmosis, a parasitic infection that can be life-threatening for immunocompromised patients, such as those with HIV/AIDS.
3. Shkreli's actions led to widespread public outrage and sparked debates about drug affordability and corporate greed in the pharmaceutical industry.
4. In response to the backlash, Shkreli claimed that the price increase was necessary to fund research for new treatments and ensure the sustainability of his company.
5. In 2017, Shkreli was convicted of securities fraud unrelated to Daraprim but remained a symbol of unethical behavior in pharmaceutical pricing.

Review Questions

• How did Martin Shkreli's actions regarding Daraprim exemplify the ethical dilemmas faced in pharmaceutical pricing?
  • Shkreli's drastic price hike of Daraprim serves as a prime example of ethical dilemmas in pharmaceutical pricing because it raised questions about the balance between profit motives and patient access to essential medications. The situation highlighted how pricing strategies can put life-saving drugs out of reach for many patients who need them, particularly vulnerable populations. This incident prompted broader discussions on whether drug companies prioritize shareholder profits over patient welfare.
• Discuss the implications of Shkreli's price increase on public perceptions of the pharmaceutical industry and its practices.
  • Shkreli's significant price increase on Daraprim led to a severe backlash against the pharmaceutical industry as a whole, damaging public trust. Many people began to view pharmaceutical companies as primarily profit-driven entities rather than as providers of health solutions. This shift in perception has prompted calls for greater regulation and transparency in drug pricing, aiming to ensure that essential medications remain accessible to those who need them.
• Evaluate how Martin Shkreli's case has influenced ongoing discussions about healthcare reform and access to medicines in the U.S.
  • Martin Shkreli's case has significantly impacted ongoing discussions about healthcare reform by bringing attention to the urgent need for policies that address drug pricing and access to medicines. The public outrage following his actions has spurred lawmakers and advocacy groups to push for reforms that could lead to more equitable drug pricing models. As a result, there is now increased scrutiny on pharmaceutical pricing practices, with efforts focused on ensuring that critical medications are affordable and accessible to all patients, regardless of their financial situation.

Related terms

Pharmaceutical Ethics: The branch of ethics that deals with the moral principles and dilemmas related to the development, pricing, and distribution of drugs.

Drug Pricing: The process of determining the cost of prescription medications, which can be influenced by various factors including research and development costs, market competition, and regulations.

Access to Medicines: The ability of individuals or populations to obtain necessary medications, which can be affected by price, availability, and healthcare infrastructure.