Does this mean CEO Martin Shkreli’s drug company value just fell?
A pharmaceutical company announced Thursday that it plans to introduce a significantly lower-cost version of Daraprim, the drug that made headlines last month after jumping from $13.50 per pill to $750.
Imprimis Pharmaceuticals is offering a “customizable compounded formulations” of the two main ingredients in Turing Pharmaceuticals’ Daraprim, which is typically used to treat toxoplasmosis, an infection caused by a parasite. The drug is particularly critical for pregnant women and those infected with immunodeficiency disorders like HIV/AIDS. Their version of the pill will be available for less than a dollar per capsule, according to a press release. A 100-pill bottle will sell for as low at $99, the company said.
“While we respect Turing’s right to charge patients and insurance companies whatever it believes is appropriate, there may be more cost-effective compounded options for medications, such as Daraprim, for patients, physicians, insurance companies and pharmacy benefit managers to consider,” said Mark L. Baum, CEO of Imprimis.
Martin Shkreli will learn that Capitalism giveth and taketh away. Shkreli’s bad press and drug price gouging allowed another company to enter the market. Moreover, that company will garner much admiration at his expense. Given that Shkreli bought the drug to exploit its then monopoly status, the valuation of his company is likely no longer where it was a few days ago. It could not have happened to a better guy.