The people who deal with J. Michael Pearson should take a page from his book. His personal suppliers - barber, tailor, medical professionals (especially), landlord, cab drivers, restaurants, etc, etc., should increase their fees/prices 5,000%. I'll bet it wouldn't take long before he began to see the light - the red light.
6
Many of these drugs are off-patent. What is the US government doing to encourage other drug manufacturers, either in the US, India, Switzerland, or elsewhere, to produce generic versions of them? Will TPP interfere with that?
1
"Your money or your life." Corporate business ethics. If corporations are "persons," they're sociopaths.
8
Although free market principles are generally best, the actions of a few drug companies give anyone pause. Drugs are key to maintaining our health and a few profiteers have exposed a huge problem. Patent protection grants an artificial monopoly, or as Stieglitz phrases it "rent", to these companies. However, patents are intended a device to induce innovation and should not protect profiteers who unreasonably raise prices to take advantage of an artificial monopoly. When products are released, drug manufacturers have presumably already priced their products sufficiently to recover research and development costs as well as a fair rate of return on their capital. When there is an unexplained substantial spike in a drug price, the government should step in by restricting patent protection. If an average drug price rises more than 33% than its average three year price, for example, the company's patent for that drug should be converted to a license and any drug company should be permitted to manufacture and market that drug for a reasonable license fee set by Congress. Congress could authorize the Patent Office to hear an appeal on set criteria that exempts companies for a legitimate reason, such as the cost of raw materials or processes have risen. Such patent legislation would curb motivation to gouge prices, insure that the public would have access to necessary products and grant drug companies the freedom to innovate and achieve a return on their capital.
7
Drugs are high value products, so value pricing makes prices high. (Duh.) But value pricing drugs is different from value pricing candy and hats; demand for drugs is inelastic. Drug pricing, like all healthcare, is patently an area for public control.
2
Drug company and medicine reform is a lot like gun control. Everyone thinks it a good idea but big business and congress makes it impossible to achieve. People would rather make money than be responsible.
6
If you believe the pharmaceutical industry is poorly regulated now, wait until President Obama's nominee to be the next Commissioner of the FDA is rubber stamped by the Senate. Dr. Robert Califf has deep and long-standing financial ties to Big Pharma, has no experience in public health, and has scoffed at the Sunshine Act.
6
How does what J. Michael Pearson is saying different from, "Your money or your life?
8
I understand how supply & demand dictates prices, but this company has taken it way too far with lifesaving drugs. The price increases might be acceptable when it comes to conditions where patient's have alternative (and cheaper) medication options (like in Diabetes care)...but when it comes to rare diseases, like Wilson's Disease, many patients have limited options in treatment and the availability of medications. The government needs to ensure that treatments are available with regards to all rare diseases -- so that not one company is monopolizing on people's illnesses/lives.
http://doctor-deena.blogspot.com/
http://doctor-deena.blogspot.com/
4
There is notihng that would send a chill through the board rooms and executive suites of these rapacious pharmaceutical firms than government's -- either federal or state -- beginning to seize the companies' patents via eminent domain laws.
Though an untested legal theory, there seems no reason why eminent domain should not cover intellectual property the same as it does tangible property, like real estate, that the government determines may be seized for the public benefit. Should the government undertake such an action by firing a shot across the drug companies' collective bow, a long court battle will inevitably ensure, but even that protracted process will like resolve itself long before most drug patents are due to expire.
Though an untested legal theory, there seems no reason why eminent domain should not cover intellectual property the same as it does tangible property, like real estate, that the government determines may be seized for the public benefit. Should the government undertake such an action by firing a shot across the drug companies' collective bow, a long court battle will inevitably ensure, but even that protracted process will like resolve itself long before most drug patents are due to expire.
4
I'll believe it when I see it. Right now no chance a Republican house and Senate does ANYTHING about this no matter how many bodies pile up. Sorry guys money talks and the voters do not have a voice.
All they have to do is wave some wedge issues around and people will completely forget about this. I doubt anything will change for quite some time. All I have to say is hope you never get sick because you are getting a death sentence.
Democrats and Republican congress people are bought and paid for by these companies. Sorry to the guy in the article but you are going to die a painful death and nothing will get done.
United States of America INC. We have been completely sold out and my generation will have to foot the bill.
All they have to do is wave some wedge issues around and people will completely forget about this. I doubt anything will change for quite some time. All I have to say is hope you never get sick because you are getting a death sentence.
Democrats and Republican congress people are bought and paid for by these companies. Sorry to the guy in the article but you are going to die a painful death and nothing will get done.
United States of America INC. We have been completely sold out and my generation will have to foot the bill.
5
As someone who has committed my career and the majority of my waking hours to developing and delivering new drugs to patients, I believe it's time for us to find a middle ground on the issue of drug pricing.
Obviously we need controls in place to prevent the type of behavior we've seen at Valeant and Turing recently. We also need a method to better evaluate pricing mechanisms for novel drugs, as things are spiraling out of control in areas such as oncology, orphan disease, and hepatitis C.
But I also strongly believe that the comments regarding "getting profit out of healthcare" are extremely misguided. The most recent estimate from Tufts is that it takes $2.5B and 10+ years to bring a new drug to market. Given the high costs, high risk, and lengthy development timelines in the industry, we need the promise of financial return in order to attract the best and brightest minds to the industry, and in order to attract investors.
What we need is a system of pricing checks and balances in place, which also ensures that innovation does not suffer, and that new drugs which both improve and extend human life continue to reach the patients that need them.
Obviously we need controls in place to prevent the type of behavior we've seen at Valeant and Turing recently. We also need a method to better evaluate pricing mechanisms for novel drugs, as things are spiraling out of control in areas such as oncology, orphan disease, and hepatitis C.
But I also strongly believe that the comments regarding "getting profit out of healthcare" are extremely misguided. The most recent estimate from Tufts is that it takes $2.5B and 10+ years to bring a new drug to market. Given the high costs, high risk, and lengthy development timelines in the industry, we need the promise of financial return in order to attract the best and brightest minds to the industry, and in order to attract investors.
What we need is a system of pricing checks and balances in place, which also ensures that innovation does not suffer, and that new drugs which both improve and extend human life continue to reach the patients that need them.
4
Democracy is great until it isn't. For these companies to gouge drug prices is unbelievably unethical but legal. The best our legislators can do is to allow health insurers, Medicare, and patients to look outside of the U.S. to procure their meds. Let's at least try to level the playing field.
3
Free markets are a myth when profits and shareholder value is taken into account.
2
Price-gouging is one part of the pharmaceutical industry. Drugs without which a person will die are most appropriately handled in this way--to meet the moral obligation of maximizing profit--profit to whom we all know.
The second big money-maker is to get people to use a drug for the rest of their lives. This way results in fewer complaints or articles in NY Times. The drug companies do the trials, and the FDA is loaded with folks with ties to the drug industry. (Recent NY Times article about new head of FDA.)
The potential problem with mass usage of a drug is that inevitably there will be adverse effects. But since only 1% of adverse effects are reported, there will be plenty of time to sock away profits and simply pay yet another multi-million or multi-billion dollar fine. Just google fines paid by drug companies. Over and over and over.
As a person who had a drug pushed on him--by a cardiologist whose practice received hundred of thousands of $$$ from Merck and Pfizer, I'm one of the adverse effect victims.
I took a statin drug. My doctor said statins were the reason Americans lived longer now. In reality, the Framingham heart risk evaluator says that if I lowered my LDL by 90 points, over TEN years I'd lower my heart attack risk from 10% to 9% Trivial. My doctor also said that some people think statins should be in the water supply. What do you think? https://plus.google.com/102631385922452069974/reviews
The second big money-maker is to get people to use a drug for the rest of their lives. This way results in fewer complaints or articles in NY Times. The drug companies do the trials, and the FDA is loaded with folks with ties to the drug industry. (Recent NY Times article about new head of FDA.)
The potential problem with mass usage of a drug is that inevitably there will be adverse effects. But since only 1% of adverse effects are reported, there will be plenty of time to sock away profits and simply pay yet another multi-million or multi-billion dollar fine. Just google fines paid by drug companies. Over and over and over.
As a person who had a drug pushed on him--by a cardiologist whose practice received hundred of thousands of $$$ from Merck and Pfizer, I'm one of the adverse effect victims.
I took a statin drug. My doctor said statins were the reason Americans lived longer now. In reality, the Framingham heart risk evaluator says that if I lowered my LDL by 90 points, over TEN years I'd lower my heart attack risk from 10% to 9% Trivial. My doctor also said that some people think statins should be in the water supply. What do you think? https://plus.google.com/102631385922452069974/reviews
2
Valeant is doubly disgusting because it headquarters itself in Canada, a country where the price of drugs are controlled through their national health care system. Meanwhile our government allows this to happen, and plays hardball in the TPP trade deal to give drug companies extra years to maintain their patents.
9
Socialized medicine, anyone?
10
Sorry, but government control and manufacture of pharmaceuticals is the only answer.
3
When the first person dies, charge Mr. Pearson with Manslaughter.
9
I love it. This is exactly the kind of behavior that will lead to exactly what most industry insiders say they don't want -- government control of pricing. They deserve what they get. Yet, this also opens a door to other companies -- if you have an equivalent drug, offer it up at a reasonable price. Free market at work, right?
5
The "free market" seems to encourage this sort of predatory capitalism.
3
MS drugs have escalated at an unconscionable rate over the last 20 years (average 700%). 20 years ago, there were 3 approved drugs; today there are at least 12. And today none is under $50,000/year.
The revolution in care for MS patients has been remarkable. Yet, this pricing strategy takes advantage of people who already have extraordinary challenges.
Will the choice be: Pay for the drugs; or watch the disease progress? And wouldn't that be extortion?
The revolution in care for MS patients has been remarkable. Yet, this pricing strategy takes advantage of people who already have extraordinary challenges.
Will the choice be: Pay for the drugs; or watch the disease progress? And wouldn't that be extortion?
5
This price escalation policy by drug companies is no different from war profiteering. It should be treated as such with shame, ridicule and laws by the general public and legislators. When anger fails, try ridicule.
6
Pirates will thrive until someone fires a shot across the bow of their enterprise. It is past time for our do-nothing Congress to cut this practice short.
6
"But Mr. Pearson................. has said he has a duty to shareholders to wring the maximum profit out of each drug."
This neatly dispenses with any moral issues.
It is his duty. He as no choice. There is no other option.
This neatly dispenses with any moral issues.
It is his duty. He as no choice. There is no other option.
4
Cashing in on people's deteriorating health condition is nightmare-stuff to simply think of. A quick glimpse into the actual numbers pictured here thus featuring random prices skyrocketing over a very short time period and yet causing but a trickle of short-lived vituperative remarks from the US government, speaks huge volume.
Big blame on the barons of the pharmaceutical industry, also those allowing this to happen down the line...can't hardly believe those easily traceable-CEOs can roam freely into the privileged fringe of society instead of winding up behind a vertically striped window, (to put it mildly). Issuing orders stop this should deter others like-minded charlatans to continue harvesting from such a pitiful path. Something must be rotten at the root of the system. Injustice at his best. In hope real action will be taken asap to go fix such monkey-business before more of it goes rampant, to the extent of becoming the norm.
Big blame on the barons of the pharmaceutical industry, also those allowing this to happen down the line...can't hardly believe those easily traceable-CEOs can roam freely into the privileged fringe of society instead of winding up behind a vertically striped window, (to put it mildly). Issuing orders stop this should deter others like-minded charlatans to continue harvesting from such a pitiful path. Something must be rotten at the root of the system. Injustice at his best. In hope real action will be taken asap to go fix such monkey-business before more of it goes rampant, to the extent of becoming the norm.
4
I have systemic lupus erythematosus and type 1 diabetes. Fortunately, my insurance covers my insulin at 100%, so the recent Lantus price spike has not hit me directly. Unfortunately, the medication that keeps my lupus in check, a 60-year-old antimalarial drug that enables me to work full-time and contribute to the economy, went from a $7 copay per month to over $100 per month. This is not some innovative new drug discovered after extensive R&D. But when the Indian company that manufactured the generic drug was prohibited from selling in the United States, the only American company to offer the drug raised prices immediately. Enough is enough. Take the profits out of healthcare. Let us buy our meds overseas.
4
I wrote letters to my representatives as well as provided input for trade organizations regarding the fact that the ACA was wrong to dictate that doctors must order generics across the board. I said that investors would jump in and, as the government mandated generics, they would buy up old formulas and enrich themselves.
I have found that was exactly what happened and what continues. In addition, companies producing generics do not decrease their price against the brand name significantly.
This is what happens when you create a law that dictates - the law of unintended consequences.
Wonder how many of those in Congress are invested in companies engaged in, or investing in, generics?
I have found that was exactly what happened and what continues. In addition, companies producing generics do not decrease their price against the brand name significantly.
This is what happens when you create a law that dictates - the law of unintended consequences.
Wonder how many of those in Congress are invested in companies engaged in, or investing in, generics?
2
What is the relationship between government-mandated generics and Valeant and other companies' actions here?
Drugs may save lives and yet they do not build health. Hedge funds will destroy people in pursuit of profits. Healthcare is a real misnomer in the US.
Healthcare is for people, not for profits. How low can we sink?
Healthcare is for people, not for profits. How low can we sink?
1
We're already paying for water, the air we breathe will be next.
3
Medical care for profit is an evil concept promoted by evil people. If someone dies because they can't afford an inordinately priced drug the corporation making the drug should be held liable.
2
This article is enough to make me sick. Money and Greed over sick people. Capitalism at its worst.
4
"My husband will die without the medicine".
That's the whole story in one succinct sentence. Until the US comes into the modern age with a single-payer universal plan for all health care needs, we will hear similar sentiments again and again. Sadly, those with the power to change things aren't listening.
That's the whole story in one succinct sentence. Until the US comes into the modern age with a single-payer universal plan for all health care needs, we will hear similar sentiments again and again. Sadly, those with the power to change things aren't listening.
4
"The generic equivalent of Cuprimine ..... is being sold by some foreign pharmacies for $1 a tablet, in contrast to the $260 Valeant is now charging."
Two points.
First these companies "looting" the US patients and, essentially funds from our medicare programs, and hence US taxpayer. With permitted looting, our programs become unsustainable and our legislators then put on a somber face and talk about curtailing these programs. Think of that. How can we ever allow this?
Second, the "hands off" approach negotiated by Big Pharma from our legislators, whether its in the ability for medicare, a substantial payer in our healthcare system, to negotiate prices or in our ability to import drugs from abroad, is a flagrant statement of who (virtually all) our legislators care for most.
Two points.
First these companies "looting" the US patients and, essentially funds from our medicare programs, and hence US taxpayer. With permitted looting, our programs become unsustainable and our legislators then put on a somber face and talk about curtailing these programs. Think of that. How can we ever allow this?
Second, the "hands off" approach negotiated by Big Pharma from our legislators, whether its in the ability for medicare, a substantial payer in our healthcare system, to negotiate prices or in our ability to import drugs from abroad, is a flagrant statement of who (virtually all) our legislators care for most.
1
All my life, and I'm old, I've known that drug companies rip off everyone. The government refuses to set prices and to regular the drug companies. People die when they cannot afford drugs! And when the USA pays for drugs for people, the rip off gets bigger. Regulate the drugs, take over the drug companies and prosecute the executives for their crimes. They are killing people. (I have insurance but it still makes me angry that this has gone on forever.)
1
Greed is alive and well in Valeant's leadership. Whether or not these absurd price hikes are legal or not is not the issue. It is simply immoral to overprice existing drugs to the point where our citizens will die due to lack of funds. This type of behavior will cost lives and ought to be a main topic of conversation. Does this company have a monopoly on these drugs? If so it would seem to violate of anti-trust laws. Where are our supposed representatives? The lack of interest on this issue is appalling.
1
How come cornering commodities or other markets breaks the law but cornering the prescription market is considered a smart move?
2
Bravo free market! Bravo!!! Everyone loves the free market until it comes to healthcare - and then people cannot seem to stop whining about it. I wonder why...
The problem here are actually the so-called miracle drugs and the outrageous prices charged to gain access to them. Big pharma is like the proverbial vampire squid parasitizing those who come to it for a cure. They should be looking elsewhere in natural and alternative care, and if the human body can not sustain its basic functions with a few exceptions then extraordinary measure should never be used. And death is not the worst fate, but rather dragging down many others is. Society cannot afford to be warped and manipulated by the one percent, and their lawyers and lobbyists.
1
So just die?
When a reliable old drug could save your life, except that some parasite has purchased its license and raised.the price to an obscene level, without ever risking a penny (or potentially helping humanity) through investment in R&D?
Do you really regard this as the appropriate response to this problem?
When a reliable old drug could save your life, except that some parasite has purchased its license and raised.the price to an obscene level, without ever risking a penny (or potentially helping humanity) through investment in R&D?
Do you really regard this as the appropriate response to this problem?
I remember decades ago when the Ayatollahs of Iran first began referring to the US as "The Great Satan", and how shocking that seemed at the time. Mr. Pearson and his ilk seem determined to prove them right. Are we really not better than this?
2
I would ask the Canadian government to expel Valeant as a treasonous firm. Why? It is actings to harm our citizens who need its drugs. But Valeant would just go elsewhere- laying off its employees here.
Would public shaming work on Valeant? Online publication of the photos and contact information of its executives and shareholders? Or would they mind being pariahs?
Would public shaming work on Valeant? Online publication of the photos and contact information of its executives and shareholders? Or would they mind being pariahs?
2
"Valeant" and the other big pharmas are faceless corporations. There are people making these decisions - at least one of them a 22-year-old former hedge fund manager whose wealth is increasing exponentially. Perhaps vampires would be a more accurate term. If they cannot control their addiction to money - the rest of us and the government are going to have to start exerting stringent control.
2
@MS: '"Valeant" and the other big pharmas are faceless corporations.'
Did you do a web search? Valeant has a web site, and it is publicly traded (NYSE: VRX). The article doesn't make it clear, but the CEO is J. Michael Pearson.
"... a 22-year-old former hedge fund manager ..."
J. Michael Pearson is in his 50s.
Did you do a web search? Valeant has a web site, and it is publicly traded (NYSE: VRX). The article doesn't make it clear, but the CEO is J. Michael Pearson.
"... a 22-year-old former hedge fund manager ..."
J. Michael Pearson is in his 50s.
1
@MS: "... a 22-year-old former hedge fund manager ..."
If you are referring to Martin Shkreli, he is 32:
Martin Shkreli, the Mercurial Man Behind the Drug Price Increase That Went Viral
By ANDREW POLLACK and JULIE CRESWELL
SEPT. 22, 2015
http://www.nytimes.com/2015/09/23/business/big-price-increase-for-an-old...
If you are referring to Martin Shkreli, he is 32:
Martin Shkreli, the Mercurial Man Behind the Drug Price Increase That Went Viral
By ANDREW POLLACK and JULIE CRESWELL
SEPT. 22, 2015
http://www.nytimes.com/2015/09/23/business/big-price-increase-for-an-old...
1
The real reason Valeant's actions are making the drug industry nervous is that it exposes the tall tales they're telling about drug prices for what they are. In reality, even conventional companies spend far more on advertising their drugs than on R&D, they just talk up their R&D expenses to gain sympathy. And then they blow smoke about how patients aren't paying "list price", and create programs that help cover costs for a tiny fraction of patients (while passing taxpayers the bill through tax write-offs based on inflated list prices that supposedly nobody is paying).
4
If countries combined to shut out Valeant medicines, that should get Valeant's attention. How easy and fast could countries join efforts?
We heard all about "death Panels" from the Republicans, those turned out to be fantasy. Now we know all about these new de facto "death panels" -i.e. Big Pharma companies who are raising cost so even the co-pays are ludicrous which makes these life or death decisions.
Where is the political outrage, where is the grassroots outrage, where are the demonstrations, where is the media coverage?
Price hikes like these - supposedly covered by Insurance are going to drive up rates - because who do you think will pay for this - more that even the least truthful ACA (Obamacare) conspiracy theory ever will.
Where is the political outrage, where is the grassroots outrage, where are the demonstrations, where is the media coverage?
Price hikes like these - supposedly covered by Insurance are going to drive up rates - because who do you think will pay for this - more that even the least truthful ACA (Obamacare) conspiracy theory ever will.
5
To all those who think government should "get out of the way" of business and let the "free" market work ... here is the obvious result. A bitter pill indeed.
11
sigh...
This is what happens when a pharmaceutical company is run by bankers and MBAs. Never produced a thing in their lives. Just find ways to legally cheat people out of their money. Then we have to here the same old "I have a responsibility to my shareholders" argument like it makes their actions morally justifiable or something.
This is what happens when a pharmaceutical company is run by bankers and MBAs. Never produced a thing in their lives. Just find ways to legally cheat people out of their money. Then we have to here the same old "I have a responsibility to my shareholders" argument like it makes their actions morally justifiable or something.
7
One of the simplest ways to deal with this is to open the door to US citizens' being able to purchase the drug from foreign countries, a practice currently strictly restricted, thanks to pharmaceutical's lobbying. We give lip sevice to the term free/open market ... yet it is nothing of the sort. Let's make it so, and let the same world-wide competition that is influencing workers' salaries come into play for the corporate sector.
5
When I took economics classes in the 1970's, we spoke of "social goods". These were products or services that should not be subject to the unfettered action of supply and demand because the product/service was by nature too important to the well-being of society. In short, maximizing profit above every other consideration was both immoral and ill-advised from a macro-economic perspective. These goods/services included national defense and education. I would argue that energy and health care should also be included in this list. Clearly, if the leaders/investors of these companies do not have the moral fiber to restrain their greed, the government should.
8
Here's one way the current administration could help: expressly direct the relevant players to de-prioritize the prosecution of purchasers of foreign drugs, much as the prosecution of marijuana growers in "legalized" states has been de-prioritized. If our Congress won't protect taxpayers by negotiating drug prices, at least allow our consumers to obtain drugs from countries where the government does protect the consumer interest. Perhaps we could have executive action that allows distributors and pharmacies to import drugs purchased at overseas rates.
If everyone in the US could buy these drugs at Canadian prices we would be saving consumers substantial amounts of money. Insurance companies could establish Canadian operations and require participating providers to source their drugs from Canada at Canadian list prices.
If everyone in the US could buy these drugs at Canadian prices we would be saving consumers substantial amounts of money. Insurance companies could establish Canadian operations and require participating providers to source their drugs from Canada at Canadian list prices.
4
Valeant is taking advantage of government created/supported monopolies. The same drugs are available in other countries for far less money. Does the government allow consumers to buy from pharmacies outside the US? No. Does the government lower the barriers so that other drug makers could start producing these drugs for the US market? No. Free Markets work if the government will get out of the way. Pearson may be greedy but it is the government that enables him to be so.
3
Yes John David, but it is the elected Congress of our government that seems so chill about how many ways we the public can be dragged down. Let's ask the 14 or so who are running for the GOP candidate how they feel and what they will do about this situation. I'm just dying to hear!
1
The US government, under the auspices of the National Institutes of Health or the Centers for Disease Control, should be manufacturing essential medications. Why do we even have drug companies making these medicines? It doesn't make any sense. Essential life-saving medications, that are off patent, should be manufactured by the government. It's time to stop letting greedy capitalists make money off of the death and suffering of their fellow Americans.
6
Remember? We shrank government and drowned it in the bathtub. The stated goal of Grover Norquist. This is the result.
What amazes me is why everyone thinks this is unusual. This is "BUSINESS AS USUALL!"
The point is to make money. It has nothing at all to do with supporting the
Common Good or General Welfare. Until we get that, we will suffer the consequences of our naivety.
The point is to make money. It has nothing at all to do with supporting the
Common Good or General Welfare. Until we get that, we will suffer the consequences of our naivety.
5
Any time you manage a critical service as a profit center you will have ethical conflicts. Our society has not decided to separate health care in the way it has separated public safety as a function for universal good. Until that happens, the vultures will prey on the weak and largely voiceless. It does not speak well of our country that we allow this sort of thing to go on. I wrote to my congress-person about the outrageous price of drugs and, months later, am still awaiting a reply.
1
The drug companies are not scared of government intervention. Because the Republicans have their backs.
2
"But Valeant’s habit of buying up existing drugs and raising prices aggressively, rather than trying to develop new drugs, has also drawn the ire of lawmakers and helped stoke public outrage against the growing trend of higher and higher drug prices imposed by big drug companies. "
What is the difference between investing in R&D or buying it? Both costs the same and risks are just as high on both. Fact of the matter is that Valeant is just doing what other companies engage in on a much larger scale and was picked up during a presidential campaign and since it is a non-American company it was easy pickings. The US pharma market supports the world when it comes to research and R&D and somebody has to bear the costs of that. Without us, healthcare as we know it does not in many instances don't exit. We as citizens pay the premium because we invest in R&D in whatever form because of the insurance that goes with everything
What is the difference between investing in R&D or buying it? Both costs the same and risks are just as high on both. Fact of the matter is that Valeant is just doing what other companies engage in on a much larger scale and was picked up during a presidential campaign and since it is a non-American company it was easy pickings. The US pharma market supports the world when it comes to research and R&D and somebody has to bear the costs of that. Without us, healthcare as we know it does not in many instances don't exit. We as citizens pay the premium because we invest in R&D in whatever form because of the insurance that goes with everything
This is outrageous criminal behavior and these so called "businessmen" should be treated as the criminals they are. The lowest pimp or drug dealer on the street are ethically superior to these men.
2
Raises the ire of lawmakers? This outrage certainly hasn't raised the level of action in Congress or the so-called executive branch. To misuse a quote from Richard Nixon, the regulatory and lawmaking apparatus of the enormous US government is no more than "a pitiful, helpless giant."
Obama made a drug deal with the drug companies to get his Affordable Care Act passed. It turns out to be a kind of Munich decision. The drug companies took it as a sign they could do whatever they want to do, raise prices as much as they desire. This is not Republican or Democratic. It is the entire political establishment caving in to the free market fairy tale peddled by the drug companies. Why? We know why.
Obama made a drug deal with the drug companies to get his Affordable Care Act passed. It turns out to be a kind of Munich decision. The drug companies took it as a sign they could do whatever they want to do, raise prices as much as they desire. This is not Republican or Democratic. It is the entire political establishment caving in to the free market fairy tale peddled by the drug companies. Why? We know why.
1
Modern day vampires. Start buying drugs from abroad where prices are 1/10 or something 1/100th of US prices.
1
I am so very hopeful that reporting of these incidents of 'unbridled greed' (to quote Alan Greenspan) will lead sooner rather than later to strict controls on profits of drug companies and a rescinding of the Bush law that forbade Medicare from negotiating prices with drug companies.
In fact, this could be a good start back to the balances on corporate greed in general that made the 50s and 60s so prosperous for everyone.
In fact, this could be a good start back to the balances on corporate greed in general that made the 50s and 60s so prosperous for everyone.
1
People like Shkreli and Pearson, they are the vermin of society, not generating any value but only living of the misery of others. They've been raised this way and no required ethics class in business school will change this. But instead of exterminating them and their practices, our congress feeds them by shielding them from meaningful foreign competition. Never mind that, even when there is competition, unfettered capitalism does not work in the healthcare market, since the consumer, being dependent on the drug/treatment, is essentially an addict. Civilized countries have realized that and instituted appropriate price-controls (even though many tea-partiers may think so, Briton is not really a communist third-world country). Where are the pro-lifers in this country that care about the lives of the living?
4
While it is illegal to import drugs from other countries, it is FDA policy to permit the import of prescription drugs for the recipient’s personal use, in quantities up to a 3 month supply at a time. Now, there are lot of knock-off sources supplying tainted or fake pharmaceuticals. But there are a number of pharmacies in Canada who supply only quality products. (I grew up living in the house behind my grandfather’s pharmacy in Winnipeg, and personally know several of the reputable players.)
One drug I take I obtain from Canada – I will not name it here – with a three month supply costing half the copay for a one month supply under Medicare!
I checked the four Valeant drugs highlighted in this article, and found two available from a pharmacy I know personally:
Cuprimine (Penicillamine): Generic, 250 mg, 100 tablets: $100
Cuprimine (Penicillamine): Brand name, 250 mg, 100 tablets: $200
Valeant’s price: $26,189, 262 times the Canadian price for the generic version.
and
Glumetza: Glucophage XR (Metformin XR) 1000 mg, 180 tablets: US$120. Valeant’s price for 180 tablets: $20,040, almost 200 times the Canadian price.
I could not find the other two from a pharmacy I know to be legitimate.
Our politicians – Democrat and Republican – are bought and paid for by Big Pharma. I know of no other country that does not regulate drug prices.
One drug I take I obtain from Canada – I will not name it here – with a three month supply costing half the copay for a one month supply under Medicare!
I checked the four Valeant drugs highlighted in this article, and found two available from a pharmacy I know personally:
Cuprimine (Penicillamine): Generic, 250 mg, 100 tablets: $100
Cuprimine (Penicillamine): Brand name, 250 mg, 100 tablets: $200
Valeant’s price: $26,189, 262 times the Canadian price for the generic version.
and
Glumetza: Glucophage XR (Metformin XR) 1000 mg, 180 tablets: US$120. Valeant’s price for 180 tablets: $20,040, almost 200 times the Canadian price.
I could not find the other two from a pharmacy I know to be legitimate.
Our politicians – Democrat and Republican – are bought and paid for by Big Pharma. I know of no other country that does not regulate drug prices.
10
A post-script: Canadian drug price regulation does not require that pharmaceutical houses sell in Canada, just what prices they may charge when they do. Some are big enough to blackmail the entire country.
In January, 2004, Pfizer - one of the world’s largest pharmaceutical companies, with US$45 billion in revenues in 2003 - sent a letter to Canadian pharmacies threatening to cut off all Pfizer drugs if they continued to export Viagra to American consumers. The Canadian government could do nothing to stop them.
In January, 2004, Pfizer - one of the world’s largest pharmaceutical companies, with US$45 billion in revenues in 2003 - sent a letter to Canadian pharmacies threatening to cut off all Pfizer drugs if they continued to export Viagra to American consumers. The Canadian government could do nothing to stop them.
2
Time for America to wake up and realize our backs are being pushed against the wall by our "so called" government and the companies they enable. If they are going to continue to threaten our lives and well being, perhaps we should be willing to do the same to them - with violence if need be.
Let's not over think this. this is price gouging, pure and simple and price gouging is illegal. It's the same for the people around here with bass boats and bottled water. If they suddenly and exorbitantly raised their prices they could be arrested.
3
@ED: "... price gouging is illegal."
You must be thinking of price fixing, which occurs when several companies collude to set prices:
https://en.wikipedia.org/wiki/Price_fixing
You must be thinking of price fixing, which occurs when several companies collude to set prices:
https://en.wikipedia.org/wiki/Price_fixing
They always think of new ways to rob the government. Give them the disease, but not the cure. It might thin out that herd.
Enough! Maybe the top 1% can afford this criminal action, but the rest of American society cannot! If big pharma isn't gouging people directly, they are doing it via hospitals and insurance. The argument that big pharma can 'offset the price' for certain individuals is hype also - it usually requires the patients to fill out forms (begging) every month while being on the drug to prove how destitute they are.
This is gouging by big pharma is going to kill patients. Congress had better enact a law to kill the practice of buying existing generics and jacking up the price. After all, there are no R&D costs associated with these price increases, just pure greed!
This is gouging by big pharma is going to kill patients. Congress had better enact a law to kill the practice of buying existing generics and jacking up the price. After all, there are no R&D costs associated with these price increases, just pure greed!
4
Everyone of you reading this story know nothing will be done by Congress to solve it. Same with the multitude of of issue that could be fixed but will not our Government only works for the rich and large Corperations. We need money out of politics before any issue facing our working class citizens is solved
3
The activity is an unconscionable commercial practice violating the New Jersey Consumer Fraud Act.
3
I have the perfect solution to this problem. If someone dies because they can no longer afford a life saving medication, and someone will, just charge the CEO with murder, and you'll see how quickly this ends.
5
The United States does not really regulate the pharmaceutical industry. In fact, President Obama has just nominated someone to be the next Commissioner of the F.D.A. who has longstanding financial ties to Big Pharma, no Public Health experience, and who thinks the Sunshine Law is a joke.
Just ask the families of the thousands of innocent victims of prescription drugs who die each year from their side effects - side effects hidden by the industry for the sake of sales.
Just ask the families of the thousands of innocent victims of prescription drugs who die each year from their side effects - side effects hidden by the industry for the sake of sales.
3
I am so sick of hearing of "Duty to Share Holders" from CEOs who make billions on perks by killing of their fellow man slowly.
If they went out and shot the same number of people that ate killing with "duty to share holders" they would be called terriosts. But instead we allow them to buy our government off with campaign donations and lobbying perks.
If they went out and shot the same number of people that ate killing with "duty to share holders" they would be called terriosts. But instead we allow them to buy our government off with campaign donations and lobbying perks.
5
The American people are like sheeps who present their best side to the wolf for him to bite his teeth into. Stories like this gets few comments however wait for the next Ferguson or black/white story. Then thousands upon thousands comment to tell us how bad black culture is and how good the system is. I think many here think they will somehow be one of those who make it to become rich, so they allow the rich and powerful to get away with murder. However statistics says otherwise.
2
As in so many things, it's the distraction from the real issue that gets the play. As they're picking your pocket or subjecting you to hazardous waste or toxic, combustible drinking water, price-gouging on meds, and outrageous banking practices, they're getting everyone upset about strangers getting married or abortion or race relations. It's that old magicians' trick and it seems to work every time.
And we fall for it!
Let's focus on the REAL ISSUES facing us all and warping our society.
Vote for Bernie Sanders!
And we fall for it!
Let's focus on the REAL ISSUES facing us all and warping our society.
Vote for Bernie Sanders!
Even stock investors are beginning to wonder:
"Our conclusion is that Valeant's organic growth numbers are dangerously misleading and cannot be relied upon. The pattern of Isuprel and Nitropress demonstrates Valeant destroying their goodwill with classes of customers and providers, and as the market adjusts away, as shown by the Isuprel and Nitropress Q2 run rate declines, they are undermining their own sustainability - trashing the long-term earning power of their drug portfolio in an ever-more-desperate strategy of "making the quarter". It's a desperate strategy doomed to failure."
http://seekingalpha.com/article/3550016-exposing-the-information-that-co...
It's an excellent article.
"Our conclusion is that Valeant's organic growth numbers are dangerously misleading and cannot be relied upon. The pattern of Isuprel and Nitropress demonstrates Valeant destroying their goodwill with classes of customers and providers, and as the market adjusts away, as shown by the Isuprel and Nitropress Q2 run rate declines, they are undermining their own sustainability - trashing the long-term earning power of their drug portfolio in an ever-more-desperate strategy of "making the quarter". It's a desperate strategy doomed to failure."
http://seekingalpha.com/article/3550016-exposing-the-information-that-co...
It's an excellent article.
5
Only the rich are allowed to live. They have the right to exploit everyone else to death. Congress does not care. As long as they can blame increased health care costs on obamacare and not on the greed of their corporate magesties, they are safe.
6
J. Michael Pearson should be indicted and charged for reckless endangerment of human life, a criminal offense in all 50 states.
If this is not done, the government will be inviting an outraged citizenry to take justice and the preservation of life, liberty and common decency into its own hands. I have no doubt Jefferson would have regarded this avaricious unscrupulous son of a you know what as a tyrant, and his views on citizens' rights to deal with tyrants are well known. Exact quote follows"
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is it’s natural manure".
If ever someone's blood was worthy of being the manure of the tree of liberty, it's this guy's.
If this is not done, the government will be inviting an outraged citizenry to take justice and the preservation of life, liberty and common decency into its own hands. I have no doubt Jefferson would have regarded this avaricious unscrupulous son of a you know what as a tyrant, and his views on citizens' rights to deal with tyrants are well known. Exact quote follows"
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is it’s natural manure".
If ever someone's blood was worthy of being the manure of the tree of liberty, it's this guy's.
5
Isn’t Congress, by taking no action to control drug costs, is in effect RAISING THE COST OF MEDICARE and ALL PRESCRIPTION DRUG COVERAGE, thereby, raising the salaries of Drug Lobbyists, and therefore the dole available to Congress?
4
Where are all of those that are down on smoking, abortion etc, all of those things that threaten a persons health. Here we have drug companies taking away a persons life, taking everything they have saved and worked for and letting them die because they cant afford it. How come no one is out there marching in front of the corporate head quarters with pictures of the people dying without their drugs or losing everything they own to pay for the drug
2
These radical price increases are akin to monoplistic behavior. I thought we had laws against monopolistic price gouging. The justice department should look into this. Baring this the FDA needs to adopt a speedy process to approve drugs imported from abroad. Free trade should work both ways.
The claim by these companies that it is the insurance companies that bear the brunt of these increases is spurious. When the insurance companies pay we all pay. There money comes from us.
The claim by these companies that it is the insurance companies that bear the brunt of these increases is spurious. When the insurance companies pay we all pay. There money comes from us.
7
The automobile industry is bad, the banking industry is worse and the pharmaceutical industry is the worst of all.
3
Boy, I'll bet that when the Republicans steal the Presidency and they control the entire government, they'll go after the drug companies!
1
Imagine you're in cardiac arrest. Your spouse calls 911. When the EMT arrives, he explains that he'll save your life for $100,000, take it or leave it.
Or maybe you're getting ready for a monsoon and the hardware store decides to mark up the price of emergency supplies by 666%.
Profiteering off of the life and death circumstances of others is disgusting. Our law makers should stop taking money from the pharmaceutical lobby and start fighting for us. Period.
Or maybe you're getting ready for a monsoon and the hardware store decides to mark up the price of emergency supplies by 666%.
Profiteering off of the life and death circumstances of others is disgusting. Our law makers should stop taking money from the pharmaceutical lobby and start fighting for us. Period.
9
"Duty to shareholders?" "Insurance will cover it anyway?" NOTE: Meaning with Medicare, the taxpayers are paying for it.
Mr. Pearson make Gordon Gecko look like a philanthropist. (BTW, Andrew Carnegie, realizing that wealth couldn't bring him health, declared, "To die rich is to die disgraced." Duty to shareholders is a philosophical skirt that he hides behind. Did the shareholders want him to do this?
Mr. Pearson is a sociopath of the capitalistic kind. He is evil in a three piece suit. Get the pitch forks and torches, he needs fixin'.
Mr. Pearson make Gordon Gecko look like a philanthropist. (BTW, Andrew Carnegie, realizing that wealth couldn't bring him health, declared, "To die rich is to die disgraced." Duty to shareholders is a philosophical skirt that he hides behind. Did the shareholders want him to do this?
Mr. Pearson is a sociopath of the capitalistic kind. He is evil in a three piece suit. Get the pitch forks and torches, he needs fixin'.
8
As disgusting as I find the practice of Valeant, I couldn't help but note the following sentence, "The United States, unlike most countries, does not control drug prices, and pharmaceutical manufacturers have relied heavily on steady and sometimes outsize price increases in this country to bolster their revenue and profits."
Greed is built into our system and our tradition of Self Reliance. Congress sits on its hands, just as it does with gun-control legisltation. Let all the members of Congress and the House go without health care for a year or two.
Greed is built into our system and our tradition of Self Reliance. Congress sits on its hands, just as it does with gun-control legisltation. Let all the members of Congress and the House go without health care for a year or two.
3
Or, sincethey're employed, let them just pay for it themselves, instead of enjoying another gimme. After all, the performance of Congress is not so great.
In a very real sense, this is extortion, which I believe is a felony offense. And if one person dies because of that criminal offense, would that not make this premeditated murder? It's really a similar principle as asking to be paid in order not to fire a rifle into a crowd of people, then claiming that you weren't trying to kill anyone in particular, you just wanted the money.
5
Unlike the Manneses, my situation had a much better outcome. When I went to pick up my first prescription for my newly diagnosed heart disease, I almost passed out when the cashier told me that with tax it would be over $500 per month. I fought with the pharmaceutical company for eight months, eventually leading to them to mail my prescripition directly to me, with no co-pay and no shipping costs.
I would name this caring pharmaceutical company, however, out of the fear of Valeant Pharmaceuticals coming in and buying them out, I won't.
You might be worth 1.5 billion dollars Mr. Pearson, but you better hope that God has mercy on your soul for putting shareholders before humanity, when it comes your time to answer to Him, because even though I'm a Christian, I just can't seem to do so.
I would name this caring pharmaceutical company, however, out of the fear of Valeant Pharmaceuticals coming in and buying them out, I won't.
You might be worth 1.5 billion dollars Mr. Pearson, but you better hope that God has mercy on your soul for putting shareholders before humanity, when it comes your time to answer to Him, because even though I'm a Christian, I just can't seem to do so.
6
If I were a shareholder, I wouln't trust this guy farther than I could throw him. If he treats his customers like this it's pretty likely he's cheating his employers and partners. BTW, he claims, as is SOP, to be acting in the interests of his shareholders. I am sure he is one. What about the others?
1
Capitalism sometimes is not all what it's cracked up to be. Greed seem to run the show these days.
If you own any stocks or bonds, you are a capitalist.
Increasing drug prices on old drugs just because people can pay more is immoral, but let's not crucify all drug companies.
R&D costs for a new drug takes years and costs billions. They need some type of profit incentive to even try to make new drugs in the first place.
If the government handcuffs drug companies too much, the drug companies simply will innovate less and create less new drugs that can genuinely cure and help people.
R&D costs for a new drug takes years and costs billions. They need some type of profit incentive to even try to make new drugs in the first place.
If the government handcuffs drug companies too much, the drug companies simply will innovate less and create less new drugs that can genuinely cure and help people.
Did you not read the story? Valeant does no R&D--just buys old drugs & raises the price.
1
As a fiscal conservative who usually votes Republican, I can assure you that this is a story that goes far beyond party affiliation. I have had to quit taking a drug because of the price and I can identify with people who have to go through such a horrible situation. This should be a cause that even our dead-beat Congress is willing to act on immediately. I will be contacting my two senators and my congressman today about this story and I urge every other reader to do the same!
1
@Zulalily: "I will be contacting my two senators and my congressman today about this story and I urge every other reader to do the same!"
What should we tell them to do?
What should we tell them to do?
Tell them in two words.
oh what a world we would live in if all healthcare practitioners would find any and all stockholders and executives in companies like these and refuse them and their families healthcare for anything less than a million dollars/visit. Wouldn't you like to hear them discuss capitalism then!
3
Kudos to Andrew Pollack for continuing to "out" these egregious practices. His article several years ago on Acthar Gel was masterful, although unfortunately, doctors are still prescribing it for all sorts of indications that no studies have supported. Anyway, keep up the good work. These articles really are helping to bring these practices to the light of day. We are seeing daily examples of the corrupt underbelly of capitalism and it's been very satisfying to see Martin Shkreli's smug face plastered all over TV, giving him "fame" as he becomes Public Enemy #1!
5
It should be noted though that the cited Bruce Booth, an expert on healthcare and the biopharmaceutical industry, is likewise a former McKinsey & Co. consultant, as much as some twenty senior Obama administration officials in his first term, as well as advisors to the Clinton Foundation, including Chelsea herself.
This is price gouging, pure and simple. How is this legal? We go after gas stations and other merchants who overcharge in the face of disaster-induced shortages, why not this?
4
@KM: "This is price gouging, pure and simple."
Economists would call it monopoly pricing. And that suggests a solution -- encourage *competition*.
Economists would call it monopoly pricing. And that suggests a solution -- encourage *competition*.
SINGLE PAYER HEALTH CARE
If people were better educated, "socialism" would not be a scary word that too many people equate with government power and communism They would realize how beneficial it would be to have this in place. It would save money for everyone, and remove some of the stress that senior citizens and others face not only for the quality of their care, but the financial devastation that often accompanies adequate health care.
Government is not the problem here guys....capitalism has too large of a greed component that lures oligarchs to the far end of the pendulum's arc. We need to take our medical treatment off of that trajectory.
If people were better educated, "socialism" would not be a scary word that too many people equate with government power and communism They would realize how beneficial it would be to have this in place. It would save money for everyone, and remove some of the stress that senior citizens and others face not only for the quality of their care, but the financial devastation that often accompanies adequate health care.
Government is not the problem here guys....capitalism has too large of a greed component that lures oligarchs to the far end of the pendulum's arc. We need to take our medical treatment off of that trajectory.
8
The issue isn't really how greedy they are; that's their personal problem, as Dick Cheney might explain.
The problem is that we them get away with it.
And, then convince their victims that government is the problem, not the solution, and so they SHOULD be able to get away with anything.
The problem is that we them get away with it.
And, then convince their victims that government is the problem, not the solution, and so they SHOULD be able to get away with anything.
1
There are alternatives....Cuprimine equivalent is on canadian pharmacies at $1.28 a pill, made by Mylan, a reputable manufactuere. I have sent patients to Canada for years to procure affordable drugs, even before Medicare D. We are not powerless....
5
I thought it was illegal to buy lower-priced drugs from other countries for use in the US. Aren't you encouraging your patients to break the law? Wouldn't it be better to raise awareness and get the law changed - like by voting out all the oligarch-supporting mostly Republicans in Congress?
1
These drug company executives are no better than La Costra Nostra........the Mafia!! They all need to be in jail.........pharmaceutical companies rip off the American public like no other industry, not even the oil industry!!! Yet most of their medications are sold overseas to other countries at a pittance of what they make Americans pay!!
5
From 2004 through 2010, I worked in an out patient setting as a registered nurse, at my local hospital. Part of my job, was calling back patients, for 4 MDs, and 3 NPs, and handling crisis calls. The majority of calls, were prescription related. Patients could not get a prescribed medication, without a prior authorization, or patients stopped medications, because of the cost. Many of the geriatric patients, were unable to navigate, the whole "part D" part of Medicare. If you are choosing between food,housing costs, and medications, food and housing will take precedent. Consequently, many of these patients, ended up the ER, and or hospital inpatient. And we wonder, why our healthcare costs are so high.
9
@Nora: "Consequently, many of these patients, ended up the ER, and or hospital inpatient. And we wonder, why our healthcare costs are so high."
Did they receive their prescribed medications? What other treatment did they receive?
Did they receive their prescribed medications? What other treatment did they receive?
This is a classic market failure caused by ham-handed government intervention. First, Valeant knows that Medicare is the industry bell weather for pricing drugs--it's actual strategy is to increase the cost of a drug to just the maximum which Medicare will agree to pay. Since Medicare doesn't care about profits, it simply goes along, to a point. If Medicare refused to accept the price increases, other insurers would follow suit, and Valeant would not have a market.
The second aspect of market failure is the protected monopoly afforded by patent law which is then extended by the necessity to get FDA approval before selling a generic substitute. The FDA does not need to be involved in approving generic substitutes. It's questionable whether it need be involved in anything more than discerning a drug's safety, leaving efficacy for the market to determine.
Make Medicare care about costs, perhaps through privatization, eliminate patent protection for any and all drugs, and do away with FDA post-approval involvement and the problem would be solved.
The market is failing because of government interventions, which is what Valeant has been specifically designed to exploit. The drug market is quasi-private, quasi-public. Make it one or the other, wholly private or wholly public, and there would be no Valeants to exploit it.
The second aspect of market failure is the protected monopoly afforded by patent law which is then extended by the necessity to get FDA approval before selling a generic substitute. The FDA does not need to be involved in approving generic substitutes. It's questionable whether it need be involved in anything more than discerning a drug's safety, leaving efficacy for the market to determine.
Make Medicare care about costs, perhaps through privatization, eliminate patent protection for any and all drugs, and do away with FDA post-approval involvement and the problem would be solved.
The market is failing because of government interventions, which is what Valeant has been specifically designed to exploit. The drug market is quasi-private, quasi-public. Make it one or the other, wholly private or wholly public, and there would be no Valeants to exploit it.
3
What can I do to change this?
1
@EN: "What can I do to change this?"
Start your own drug company.
Start your own drug company.
1) Support progressives for Congress
2) Work against Congressional reactionaries
3) Work for legislation limiting special interest money's influence
2) Work against Congressional reactionaries
3) Work for legislation limiting special interest money's influence
This is the cost of Obama care. The drug companies know everyone has to have insurance and insurance is going to have to pay for these unique life or death drugs regardless of cost. Who ends up bearing the burden ? You and I as tax payers both through our insurance premiums and our tax bills that support the affordable care act. Pharma doesn't have to be reasonable because government guarantees their monopoly and that they will have a buyer who can pay.
I don't think you're paying attention. It was conservatives who tied the hands of government negotiators so that they couldn't seek a lower price on drugs for Medicare patients, conservative Republicans who WANT drug companies to make outsized profits and WANT the burden to fall on the American public as taxpayers. It's called corporate socialism, and the wealthy supporters of the Republican lawmakers eat it up!
1
Thank you NY Times for exposing these vultures. These are the real "Death Panels." The companies sentence people to die because they cannot afford previously affordable meds.
3
"Let the free market decide!" But the drug industry, the education industry, the health industry, the insurance industry and the private prison industry, are clear examples of where capitalism should be heavily controlled or totally eliminated. These areas cannot be served by capitalists who serve their #1 god, known as profit, first and foremost. That is not to say that the capitalist economic system doesn't create wonderful things to say nothing about jobs. But the following is also true. Educate a child, sure, but we can't spend too much as our profit will decline. Pharma says they spend money on R & D, but they really charge as much as with the express purpose of feeding the profit god. "Can't pay our prices? Too bad. You'll just have to die".
Health costs can't be under government control...how can our investors profit with such controls. "Are sick and can't pay? Well, you really have a problem, don't you? Sorry 'bout that. Maybe some charity can help?" So then, it is clear that our country needs what I'd call "moderate capitalism" coupled with "light socialism" to insure that both the capitalist engine and the people are served properly.
Health costs can't be under government control...how can our investors profit with such controls. "Are sick and can't pay? Well, you really have a problem, don't you? Sorry 'bout that. Maybe some charity can help?" So then, it is clear that our country needs what I'd call "moderate capitalism" coupled with "light socialism" to insure that both the capitalist engine and the people are served properly.
2
Personally, I think Joaquin "el chapo" Guzman is a far more moral individual then the sociopath who runs these drug companies. At least he has the reputation of giving to the poor.
1
Companies like this are utterly disgusting, and highlight everything that is wrong with corporate America. There was a time when companies invested in research and brought a product to market at a price that allowed for continuing research and a sensible profit. Not any more - corporate pirates like Valeant and Shkreli simply look for something that people depend on, buy it , and then gouge those who have no alternative so that they can line their pockets. Repulsive - there needs to legislation to stamp out this type of abuse.
2
Why is it that individuals who have moral obligations are thought to be able to suddenly shed those obligations through the limited partnership arrangement known as a corporation?
If the individual shareholders cannot morally act in a certain way, their agents cannot either. The proposition that corporate management has no moral obligations constraining profits is abhorrent.
If the individual shareholders cannot morally act in a certain way, their agents cannot either. The proposition that corporate management has no moral obligations constraining profits is abhorrent.
1
Healthcare should not be a "Business". Period.
4
It is a business for physicians per the oath by the AMA, it is a business for universities that charge for grad schools more than any other country, it is a business for insurances that get away with 20% admin cost, compared to other countries at 3%. All that generates 17 % in GDP for healthcare, leading in the world, before Switzerland at 11%, but offering only mediocre outcomes.
Agree, health should not be related to wealth.
This reaffirms my belief that we need a single payer plan for medical, dental, and pharmaceutical services. Those who run the wealthy pharmaceutical companies refuse to put themselves in the shoes of the person who needs the drug and who can't afford the astronomical price increases. The pharmaceutical company refuses to put a face on this person, so for them that person(s) doesn't exist.
2
So much for the Big Pharma argument that excessive regulation and uncertainty in R&D drives drug pricing. Opportunism drives drug prices. Capitalism only works when sufficient competition exists to prevent the price gougers from having their way with the innocent victims. So let's increase competition by allowing all US government programs to negotiate prices so that the opportunists can't screw us all, patients and taxpayers, so easily. And let's open our markets to foreign sources of medications.
3
@MI: "Opportunism drives drug prices."
Economists would say that *profit-maximization* drives prices and production. "Opportunism" is a simplistic pejorative used by socialists.
Economists would say that *profit-maximization* drives prices and production. "Opportunism" is a simplistic pejorative used by socialists.
This behavior is rent seeking of the worst kind - extracting money from sick people who are critically dependent on these drugs. However, the strategy by Valeant is, of course, entirely in line with the views of Milton Friedman who famously argued that the only responsibility of business was to increase profits. Valeant is doing exactly that. The community paces the price for the many excesses of capitalism. Incidentally, one wonders where is PHARMA on this - are they afraid to speak out because of the attention that it will draw to their own pricing practices?
3
Politicians Take Note:
Your country's citizens will take only so much. Reverse this, or pay the political price for your inaction.
For this of you "in the pocket" of the big pharma, can you spell malfeasance?
Your country's citizens will take only so much. Reverse this, or pay the political price for your inaction.
For this of you "in the pocket" of the big pharma, can you spell malfeasance?
This article also shows us how well Obamacare is working out for the working class. If this man was on an entitlement other than social security he would have this medication covered by someone. More than likely you and I. This new TAX will eventually turn the middle class to the lower class creating more poor. This is what happens when you REDISTRIBUTE wealth. Commenters can continue to blame things like this on Republicans but it is the democrat agenda that is killing us. Please wake up before they take our money our guns and our property and give it to whoever they please.
Where there's a will, there's a way.
Just as eminent domain is used by the government for the general welfare (not that individual homeowners or landowners are always glad about the process, and there is room for abuse), so a sort of eminent domain can be created to keep life-saving drugs affordable to the American public.
It isn't capitalism when a pharmaceutical company raises prices a hundred-fold, insurance companies won't cover the increased cost, and Americans have to do without necessary medication.
I don't know what it is. But it doesn't have to be.
Just as eminent domain is used by the government for the general welfare (not that individual homeowners or landowners are always glad about the process, and there is room for abuse), so a sort of eminent domain can be created to keep life-saving drugs affordable to the American public.
It isn't capitalism when a pharmaceutical company raises prices a hundred-fold, insurance companies won't cover the increased cost, and Americans have to do without necessary medication.
I don't know what it is. But it doesn't have to be.
2
@B.: "It isn't capitalism when a pharmaceutical company raises prices a hundred-fold, ..."
You are right, but for the wrong reason. Capitalism is a system for financing companies. What you are seeing is monopoly pricing in a quasi-free market. Complain about the lack of competition, not about capitalism.
You are right, but for the wrong reason. Capitalism is a system for financing companies. What you are seeing is monopoly pricing in a quasi-free market. Complain about the lack of competition, not about capitalism.
How can we allow this to happen in this country?
This is pure greed at the expense of those who cannot afford it. Where are our elected officials? To busy lining they're own pockets with pack money I bet. Yet we the American tax payer pay our taxes and get noting in return. I view this as a form of legalized murder to those who rely upon these drugs and cannot afford them to stay alive.
This is pure greed at the expense of those who cannot afford it. Where are our elected officials? To busy lining they're own pockets with pack money I bet. Yet we the American tax payer pay our taxes and get noting in return. I view this as a form of legalized murder to those who rely upon these drugs and cannot afford them to stay alive.
2
We have two alternatives. Put price controls on pharmaceuticals, or allow pharmacies to import Ned's from other countries, such as Canada, England, etc. While much of this recent price gouging is due to having a GOP controlled Congress, it has been a growing disaster for many years.
Until the Trans-Pacific partnership cuts off affordable drugs from other countries and allows American pharmaceutical companies (and Canadian, based on this article) to rape other countries' sick people the way they do American patients and taxpayers. Negotiations are going on right now, on this very topic. Soon, there will be no way of getting affordable medication, here or anywhere else. As someone who needs insulin to survive, I've watched the price of my meds skyrocket in the last few years. Go no good reason. Our politicians hate the chronically ill - why else would they allow this kind of predatory pricing on the part of drug companies and the sociopaths that run them?
Eventually, the ill will have two options: die, or die and try to take a few pharmaceutical CEOs with them. Keep raising prices, Big Pharma - it will be interesting to see what the people you've backed into a corner do when they've finally had enough of your abuse.
Eventually, the ill will have two options: die, or die and try to take a few pharmaceutical CEOs with them. Keep raising prices, Big Pharma - it will be interesting to see what the people you've backed into a corner do when they've finally had enough of your abuse.
congress needs to table all the mindless witch hunts and endless lawsuits against ACA they are focused on and actually do some work to stop this mess that they have created..
Drug pricing is clearly in need of some legislation. But, in the case of Cuprimine, why not buy the generic at $1 each? Or hasn't the FDA approved it yet?
The system is the problem. And its specifically a U.S. problem.
Insurance companies and Medicare, the biggest buy-side players, pay drug prices on behalf of their constituents. In essence, its pooled funds; however accountability to the expense side of their ledger is to the very same politicians that are actually funded by the very same drug companies at issue here in this article. When are we going to realize this system is broke on all fronts.
Until "We the People" take action akin to MLKs march on Washington, we will pay higher prices, the middle class gets squeezed, politicians will continue this folly of debates and how they will help the middle guy, and at the end of the day, ZIPPO. Non violent revolution has won many a battle for the good of mankind. The medical industry needs such an assault.
Insurance companies and Medicare, the biggest buy-side players, pay drug prices on behalf of their constituents. In essence, its pooled funds; however accountability to the expense side of their ledger is to the very same politicians that are actually funded by the very same drug companies at issue here in this article. When are we going to realize this system is broke on all fronts.
Until "We the People" take action akin to MLKs march on Washington, we will pay higher prices, the middle class gets squeezed, politicians will continue this folly of debates and how they will help the middle guy, and at the end of the day, ZIPPO. Non violent revolution has won many a battle for the good of mankind. The medical industry needs such an assault.
As a physician I will do anything I can to avoid using Valeant's drugs.
I think we are about the only country in the world where the government doesn't get involved in price control of drugs. We have got to do something to keep drugs affordable. These companies are just ripping off medicare and medicaid so we are all paying for this!
John Teusink, MD
I think we are about the only country in the world where the government doesn't get involved in price control of drugs. We have got to do something to keep drugs affordable. These companies are just ripping off medicare and medicaid so we are all paying for this!
John Teusink, MD
2
How unethical and immoral and supported by the "family values" GOP in Congress. I know my Tea Party Congressman in NJ voted on a bill that took away Medicare's ability to negotiate drug prices- at the expense on our health and our wallets. The Pharmaceutical lobby - like all over money in D.C.- wins again. Don't you just love American Exceptionalism?
Another example of truth in the saying, "Most businessmen are thieves".
1
This is merely an example of the hyper-capitalistic survival of the fittest scenario celebrated by, among others, Ayn Rand.
The clever money-gaming drug schemers are heroes who deserve what they get.
The people not clever or lucky enough to be positioned to compete and "win" in this way are losers who also deserve what they get.
The scenario itself is noble and just.
And so many who vote for the politicians who enable such obscene exploitation of the many by the few are self-proclaimed followers of the teachings of Christ, friend to the poor and afflicted.
God help us.
The clever money-gaming drug schemers are heroes who deserve what they get.
The people not clever or lucky enough to be positioned to compete and "win" in this way are losers who also deserve what they get.
The scenario itself is noble and just.
And so many who vote for the politicians who enable such obscene exploitation of the many by the few are self-proclaimed followers of the teachings of Christ, friend to the poor and afflicted.
God help us.
1
We're in an age of predatory capitalism and the evidence is in. Sub prime mortgages - sure. Preying upon the poor by the baks for profit - why not?
Why is anyone surprised that this kind of greed gets a pass. The number of politicians on the payroll of special interest in longer than ever - and the greed just keeps on coming.
Why is anyone surprised that this kind of greed gets a pass. The number of politicians on the payroll of special interest in longer than ever - and the greed just keeps on coming.
1
If you have a patent on a drug or any product and you abuse it, you should lose it.
3
"But Mr. Pearson, a former McKinsey & Company consultant, has said he has a duty to shareholders to wring the maximum profit out of each drug." And there we have it, front and center, the fiction that a company's customers are its shareholders rather than the people who buy its products. Mr. Pearson is in the business of selling stock shares rather than life-giving drugs. He apparently sees nothing wrong with risking peoples' lives and security and running up healthcare insurance costs to all of us in order to fulfill his "duty."
J. Michael 'Evil' Pearson ought to be ashamed of himself. But this immoral man does not feel shame. Why should he? He is being rewarded for his behavior by an industry that sees profit as the only purpose for being in business. His utter lack of morality is a byproduct of unregulated capitalism, a system in which the human condition of greed takes root in the psyche and soul and robs humans of their humanity. Shame, shame, shame. Regulations are needed. Where is the soul of this country?
well, sad but true, probably these are actions reinforced by m/caide m/care. I am sure there are some private insurers out there, but suspect (my thoughts only) the bulk of this rx is being "supported" by one of the above. Probably, if Jeb! has his way and throws m/care away, he might just be surprised at the outrage of big pharma, etc. Who else can support those astronomical payments except govt and ins. cos.
The US allows them to charge what they want. That is the problem. It's capitalism in the land of plenty.
This is MRS. Perhaps it's time to regulate certain industries in this country, especially now that EVERYONE is required to be covered by health insurance (even though some have found out that it's abundantly cheaper to pay the penalty than have health insurance that covers just about nothing). I have nothing against someone profiting from their research and development; I have a problem with a tried and true that's already generic being regenerated into a fabricated shortage for gouging profit. When a tried and true drug's patent lapses and it becomes generic, the research and development phase of its production should have been recouped. If the drugs are working appropriately for the people for whom they are prescribed , then, please let the free market work for the people instead of the greedy. We all know that no industry will police itself appropriately because where there is a profit to be made, of whatever kind, there will be opportunists. There is no business study needed -- just some morals and ethics, which appear to be void in today's society.
This patient's life is in our hands. If we elect members of Congress who we know (or should know) profit from the "donations" of Big Pharm to make these crimes possible, then it is our fault. Tell this to your neighbors who say their vote doesn't count, so they don't, or who just pull the lever for the incumbent.
This is not "capitalism" in action. It's a rigged game in which the price gougers operate in a market protected from international competition and customers constrained by law from telling them to go stuff it. The idea that allowing the health insurers to merge so you have 3 mega-buyers lined up against a handful of mega-sellers is the limp supposed solution proposed by the mega-donors. This system would have collapsed long ago if both sides weren't busy stuffing money in the pockets of our "public servants."
As a physician whose primary treatment options for patients are pharmaceuticals, I am sickened by this behavior. I am struggling to describe how upsetting it is to try to help a patient when faced with a circumstance in which they need a drug that used to cost literally pennies and is now hundreds of dollars PER PILL. That these men and their investors think this is simply a brilliant new business tactic that hurts no one is shows a shocking lack of humanity.
Pharmaceuticals has apparently joined forces with the capitalist prostitutes that prey on those afflicted. In God We Trust? These faith shakers need to be sanctioned for their lack of ethics. Social Responsibility is the game plan for the future of America.
In true capitalism there is low barrier to entry for a common good or product. If a biotech company invents something, they get a patent for a while and they should profit from their outlay and hard work. We still want and need innovation. If you have a stronger, faster company or make a better or more competitive drug, iPhone, vacuum...whatever, you should have a shot at success.
What these other firms are doing is ridiculous. They get the drugs "reclassified" or make a tiny alteration in formula or prescribed use decades after they've gone off patent, so they can prevent competitors from entering and thereby start a new virtual monopoly. That's not capitalism at all, just greed, price gouging, and subverting the system.
That's actually something we can and should demand, that a markets (especially off patent generics) can't be rigged with lawyers and tricks like what many firms are doing or working on now.
What these other firms are doing is ridiculous. They get the drugs "reclassified" or make a tiny alteration in formula or prescribed use decades after they've gone off patent, so they can prevent competitors from entering and thereby start a new virtual monopoly. That's not capitalism at all, just greed, price gouging, and subverting the system.
That's actually something we can and should demand, that a markets (especially off patent generics) can't be rigged with lawyers and tricks like what many firms are doing or working on now.
1
Enough is enough. I vote to have big pharma reined in.
These behaviors are a joint effort of greedy drug companies and our own FDA on a tear to look busy and effective. The FDA began a program to evaluate generic drugs. Some of these mainstay drugs have been around longer than the current patients have been alive, saving lives, and costing very little. After the FDA comes in and demands representation of current data to support safety and effectiveness of those individual drugs. You can be assured that FDA will find something to justify their investigation and levy on the generic producer. The result is that generic companies throw up their hands and stop producing a marginally profitable drug leaving a shortage of the medication. Companies like Valeant step in, but the rights for pennies and then become the sole producer and cost controller. They begin to hold the consumer hostage and demand huge increased fees for the drugs and no alternative remains. iT SEEMS TO ME TO BE A COLLABORATIVE EFFORT TO DRIVE UP COST AND REDUCE CONSUMER AVAILABILITY OF REASONABLY PRICED DRUGS. All of this behavior began after the New England Compounding event that caught FDA with it's pants down.
"But Mr. Pearson....said that he has a duty to shareholders to wring the maximum profit out of each drug."
That ethical formulation - that our primary duty is to maximize profit for shareholders - is what is destroying the United States of America. I hear that over and over again chanted as a rebuke to any concerns that a business's practices are harming or even killing people. It's used as a shield against all accusations of irresponsible behavior, and we're being bullied into thinking that it actually has moral weight: say it slowly and solemnly enough, with a hint of threat in your voice, and you start to believe that maximizing profit for shareholders is as important and righteous as saving the lives of children, and if you don't agree you're not a real American.
Well I am a real American and I say that we have to stop buying into this mindset. Running a company that delivers a service essential to people's lives as if it were a luxury store on Fifth Avenue - let's re-brand this everyday product and raise the price point so it becomes a specialty item and we can control the market - is evil. That truly is the word for it; "aggressive" or even "arrogant" doesn't really cover it. (I would also say that it's a terrible long-term business strategy, except that businesses don't seem to care about the long term any more.)
So can we please stop accepting "our duty to shareholders" as an excuse for reprehensible actions? Thank you.
That ethical formulation - that our primary duty is to maximize profit for shareholders - is what is destroying the United States of America. I hear that over and over again chanted as a rebuke to any concerns that a business's practices are harming or even killing people. It's used as a shield against all accusations of irresponsible behavior, and we're being bullied into thinking that it actually has moral weight: say it slowly and solemnly enough, with a hint of threat in your voice, and you start to believe that maximizing profit for shareholders is as important and righteous as saving the lives of children, and if you don't agree you're not a real American.
Well I am a real American and I say that we have to stop buying into this mindset. Running a company that delivers a service essential to people's lives as if it were a luxury store on Fifth Avenue - let's re-brand this everyday product and raise the price point so it becomes a specialty item and we can control the market - is evil. That truly is the word for it; "aggressive" or even "arrogant" doesn't really cover it. (I would also say that it's a terrible long-term business strategy, except that businesses don't seem to care about the long term any more.)
So can we please stop accepting "our duty to shareholders" as an excuse for reprehensible actions? Thank you.
2
Senator Bernie Sanders has been on this case for years, taking seniors over the Vermont state line to Canada to purchase less expensive prescription drugs there. This is just one face of the greed of this rapacious industry. To me, however, the worst thing Big Pharma does is hide the potentially lethal side effects of the drugs for the sake of profits, thus dooming thousands of innocent victims to death each year. And the President has nominated a weak candidate to be Commissioner of the FDA. Dr. Robert Califf has extensive financial ties to the pharmaceutical industry and absolutely no Public Health experience. Here's hoping the Senate does its job and turns this nomination down.
1
Just watch the evening news and be assured that Big Pharma run the world. After 10 minutes of "hard news" then "ask Your Doctor" spiels take over. And yes, at least even one of the "news Items" in those final 20 minutes become a thinly veiled plug for the "medicine men" of big pharma.
It's all a conspiracy, isn't it? (I tried crying so I have resorted to laughing for and at the America I loved as the reason for moving here as a young lad)
It's all a conspiracy, isn't it? (I tried crying so I have resorted to laughing for and at the America I loved as the reason for moving here as a young lad)
1
The price increase is now totally justified for the company, when you figure in the cost of 24-7 security for all the top honchos, food tasters, the new armored limousines, and the new security division.
Can you imagine the hate mail they get?
I would be terrified to work there.
Can you imagine the hate mail they get?
I would be terrified to work there.
Where is the AARP in all of this? If 'we the people' have no say, if our votes are menaingless isn't it time for groups like this to get involved? Surely it affects their membership to a very large extent.
I fear the AARP has gone the down the path of the Chamber of Commerce. It has succumbed to the siren song of profit and become a "corporation" instead of an organization.
The word for this type of behavior is extortion. As Valeant's Pearson says, it is standard pharmaceutical industry practice. This is no defense, it just means the entire industry must be reformed.
1
If our government steps-in to limit competition from drugs produced outside the country, then they should also step-in to ensure drugs sold here are available and reasonably priced.
Prince Valeant deserves a movie. Oops. Forgot. There's two about Gordon Gekko. "Big Pharma" now has competition, Vulture Pharma.
These guys illustrate what Pope Francis has been talking about in his critique of out of control capitalism. His right wing critics should be forced to read this story out loud over and over until they reach zen enlightenment.
Given Congress' incapacity to do anything for ordinary Americans, effective regulation probably has to wait until 2016, unless anti-trust action is possible..How about a stockholders revolt to bring in new management?
The larger lesson, arguably, is that this case perfectly illustrates the need for single payer heath care, with the single payer legislatively mandated to negotiate drug prices with manufacturers, as Medicare should have been authorized long ago.
Shouldn't Congressional action on the TPP hinge on whether Pharma's patent protections under it do not promote price gouging, here and abroad.
These guys illustrate what Pope Francis has been talking about in his critique of out of control capitalism. His right wing critics should be forced to read this story out loud over and over until they reach zen enlightenment.
Given Congress' incapacity to do anything for ordinary Americans, effective regulation probably has to wait until 2016, unless anti-trust action is possible..How about a stockholders revolt to bring in new management?
The larger lesson, arguably, is that this case perfectly illustrates the need for single payer heath care, with the single payer legislatively mandated to negotiate drug prices with manufacturers, as Medicare should have been authorized long ago.
Shouldn't Congressional action on the TPP hinge on whether Pharma's patent protections under it do not promote price gouging, here and abroad.
But it's the American Way, the new American Way ....down
Sounds like J. Michael Pearson needs a good beating, and then some. I would love to give it to him.
1
Talk about death panels. Seems pharma controls who lives and dies in their boardrooms without regulation from the government or any human regard for life.
1
Valeant defended itself, saying in a statement that it “prices its treatments based on a range of factors, including clinical benefits and the value they bring to patients, physicians, payers and society.”
What a crock!!!!!!! Valeant OBVIOUSLY prices its drugs at the maximum obscene level they feel they can get away with.
What a crock!!!!!!! Valeant OBVIOUSLY prices its drugs at the maximum obscene level they feel they can get away with.
The point was made both in the story and in the comments section that although these newly expensive drugs are covered by insurance, those costs will be funneled into higher premiums by the insurance companies.
Now that we all have to buy health insurance, the drug companies and the insurance companies are free to gouge the consumer while continuing to line the pockets of lawmakers in Washington and, in the case of the insurance companies, at the state level.
This is a major flaw in Obamacare. If single-payer were enacted, or medicaid income levels had been raised to cover those who were not insured, the government would bear at least some responsibility for this outrage. As it stands now, the only thing people can do when their insurance becomes too expensive is...die.
Now that we all have to buy health insurance, the drug companies and the insurance companies are free to gouge the consumer while continuing to line the pockets of lawmakers in Washington and, in the case of the insurance companies, at the state level.
This is a major flaw in Obamacare. If single-payer were enacted, or medicaid income levels had been raised to cover those who were not insured, the government would bear at least some responsibility for this outrage. As it stands now, the only thing people can do when their insurance becomes too expensive is...die.
2
Then think about people who were not able to get any health insurance benefits at ALL because of pre-existing conditions. Where would this situation have left them? But That Still is OK with Republicans who still are trying to repeal "Obamacare" - like Paul Ryan who seems to have even a new plan to get rid of it. For some reason this stuff doesn't seem to affect Republicans or it wouldn't be allowed. Another reason to be very careful who you vote for.
How ironic this company's name is Valeant - is that supposed to be pronounced valiant - because treating people like this is far from valiant.
How ironic this company's name is Valeant - is that supposed to be pronounced valiant - because treating people like this is far from valiant.
2
What kind of low-life invests in a company that essentially holds a gun to people's heads and says, "Pay up or die!"
Good point! I do not own tobacco or alcohol related stocks for moral reasons. Now I need to check each pharmaceutical company in my portfolio for the same issues.
The Me First school of business and finance at it's finest. When electability replaced responsibility in the minds and hearts of our representatives in government, the lines are not simply blurred, they are obliterated by greed. Mr Pearson, his counterpart at Turing, and others like them earn a very special place when profit, at the expense of those in need, trumps all the rest.
The drug companies that pull theses tactics are horrible and should be ashamed of themselves. How do any of the people involved sleep at night? They enrich themselves directly by jacking up the costs of old, established vital medications-clearly not newly developed medications that one could possibly use the R&D cost rationalization. Grassroots action against the CEOs and boards? I'm making sure I'm not invested in any of them. Blood money to be sure
I'm not sure there'll be enough serfs left to care for the kings and queens after all this meta/mega wheeling and dealing kills off many of us. A kind of reverse plague. So if we get to be in short supply, will be become the sought after commodity. I'm back to reading The Handmaiden's Tale (Atwood) for behavioral tips.
The invisible hand puts the touch on us all. Who could have possibly foreseen this sort of thing happening when Congress wrote the Medicare drug law, handing over a blank check to the pharmaceutical companies and forbidding the government from negotiating drug prices? I'm shocked. Shocked.
Pearson needs to be on medication himself - something that deals with parasites, because that's what he and Valeant are. Quite a few in Congress could stand a course, too. Too bad there isn't one that cures extortionists yet. That will likely be a long time coming as there isn't enough profit in it due to the number of afflicted limited to the pharma sector.
1
Then it is time to take a vacation to Germany see a doctor and get your prescription filled here. You can have a nice holiday and go home with enough medicine to save what seems to be hundreds if not thousands of dollars.
This makes one very skeptical of the Land of Milk and Honey.
Shame on you, corporate America and lawmakers for exploiting your own citizens and especially the ill.
This makes one very skeptical of the Land of Milk and Honey.
Shame on you, corporate America and lawmakers for exploiting your own citizens and especially the ill.
1
Ofcourse, Healthcare industry has been provided protection from monopoly, collusion, and antitrust laws applicable to all other industries by the Congress. FDA regulations are enabling Valeant behavior, yet most of the commenters don't get it and ask for more regulation. These are decades old drugs cheaply manufactured and available everywhere, allow import and Valeant business model collapses in a New York minute.
1
The good news is, the greed of drug companies knows no bounds and thus will force governments to step in and control them -- WE will be forced into demanding it. The bad news is that thousands upon thousands will die because of the greed of companies like Valeant until these unprincipled bandits are brought under control. .
This article describes obvious price gouging as well as financial legerdemain (leveraged buy-outs; offshoring) that cheats the tax-payer as well as legitimate businesses.
Dear NYT readers: your anger about capitalism is misplaced. It is a wonderful system, but one prone to abuses and exploitation of weaknesses in the system. The answer is not to ditch capitalism but to change the rules from time to time to close off one abuse after another. I never-ending task, unfortunately.
I imagine that pharmaceutical companies are nervous because they fear that legislators will change laws on taxes/patent/Medicare drug reimbursement that will hurt them, too. Perhaps J. Michael Pearson will unintentionally become the straw that broke the camels' back. If so, good.
Dear NYT readers: your anger about capitalism is misplaced. It is a wonderful system, but one prone to abuses and exploitation of weaknesses in the system. The answer is not to ditch capitalism but to change the rules from time to time to close off one abuse after another. I never-ending task, unfortunately.
I imagine that pharmaceutical companies are nervous because they fear that legislators will change laws on taxes/patent/Medicare drug reimbursement that will hurt them, too. Perhaps J. Michael Pearson will unintentionally become the straw that broke the camels' back. If so, good.
3
"The answer is not to ditch capitalism but to change the rules from time to time"
And those "rules" that need to change are? Sorry but that entire sentence is gobbledygook.
And those "rules" that need to change are? Sorry but that entire sentence is gobbledygook.
1
This is pure gangsterism. The practice of buying old drugs and raising the price undermine the premise that generic drugs should become less expensive. If we had a congress, the practice would be illegal overnight.
8
If we only had a Congress. Sadly, that seems like but a memory. Legislation that addresses problems in society.
These drug pricing practices remind me of Mafia thugs visiting small businesses and commenting "It sure is a nice little place. Be a shame if anything happened to it. For $ 200 a week, we'll provide 'protection.'" No value is added, the drug remains the same, only the price changes. And we learn "The United States, unlike most countries, does not control drug prices, and pharmaceutical manufacturers have relied heavily on steady and sometimes outsize price increases in this country to bolster their revenue and profits." It's time to adopt the wise practices of other countries, treat drugs as we do water and electricity and other necessities of life. The pleadings of sick people will be ignored by these bandits, only regulation will work.
5
When will Americans really get serious about regulating the often rapacious practices of Big Pharma? That people like J. Michael Pearson are using vital drugs in price gouging strategies, and are "making a killing" could not be more true.
4
No one heard the term "shareholder value" in general conversation before Reagan.
He's dead, but America is still dying from a thousand cuts.
That's what this story is really about.
He's dead, but America is still dying from a thousand cuts.
That's what this story is really about.
6
Hit Valeant where it hurts; sell its stock short to push its value down so that the company's shareholders start thinking about a new CEO.
2
This should be criminal. Valeant executives and shareholders should be accountable for the death of anyone who can not afford their new skyrocketing drug prices. They are as guilty as the killer who pulls the triger.
4
This is no longer capitalism. Capitalism requires a balance, let's call it what biologists call 'homeostasis' that maintains the sustainability of a living organism. Society and our communities are living organisms. When an element of our society become aggressive like a cancer through its invasiveness that overwhelms the balance of the organism (society), then all hell is let loose. It is mortal. Society and the community will eventually respond to put life back into balance. History is full of such lessons. This is the kind of idiocy and greed that triggers rebellions and revolutions. It never comes to any good if left to its own devices. Capitalism requires the basis of ethics to do no harm in order for it to remain sustainable. Once we allow our capitalism and democracy to thrown out of kilter by rampant greed such as Valeant and its investors protend, then system becomes doomed. I would guess that Valeant comes to a sticky end anyway as their behaviour is extraordinarily unsustainable even in this warped world we have become accustomed too. Valeant looks exactly like Enron in the lead up to its finaly day. I think even Uncle Scrooge might agree.
3
It is my opinion that the CEOs & owner of this company can be prosecuted for racketeering and manslaughter for any that die because they have chosen to monopolize and manipulate the market. If this was an automaker, or stock trader, they would have already been prosecuted and fined. It is time for the US Attorney General to serve warrants and not shy away from standing up for Americans across the Nation.
6
Can you imagine having no choice but to forgo a vital medication b/c even after insurance you can't afford it month after month -- until the generic comes out?
I hope those so afflicted can still get a drug for suicide if it comes to that.
I hope those so afflicted can still get a drug for suicide if it comes to that.
2
I am glad that this article identified the top CEO who condone this strategy.
These individuals should be held accountable in the sphere of public opinion. They should be shamed in this way and their reputation sullied≥.
These individuals should be held accountable in the sphere of public opinion. They should be shamed in this way and their reputation sullied≥.
6
As always it comes down to how much we want our government involved in our day to day lives. If the government told me the price I had to charge for something I manufacture, I would be livid. If, instead, I wanted to purchase that product I would be ecstatic.
You're going to have SOMEBODY in your "day-to-day life" in our complex modern society. In this case, if it's not the government, it will be Mr. Pearson, deciding whether or not you get your medicine. And how the costs and benefits of drugs are allocated throughout society.
The Libertarian concept of a Utopian "freedom" is an adolescent fantasy. Perhaps even Ayn Rand realized that at the end, when she accepted public-dole healthcare before her death.
The Libertarian concept of a Utopian "freedom" is an adolescent fantasy. Perhaps even Ayn Rand realized that at the end, when she accepted public-dole healthcare before her death.
I think that once a drug becomes generic, it's time to make drug manufacturing a public utility.
5
The real problem is that there is no longer any sense of shame in our culture. In the good ol' days Mr. Pearson would be shunned by one and all, if not horse-whipped through the streets. Frankly, if one of my family died because of Mr. Pearson's greed, I'd consider putting a bullet through both of his kneecaps. And I think a jury might just let me get away with it.
6
The greed here, including "value pricing" based on patient & Insco's willingness to pay, is the same type of Guilded Age abuse the rail barrons undertook. This stuff is too important to leave to market not subject to oversight of pricing policies. Clearly the shareholder interest should also include some public interest? Impose a cost of service regime as long as they are the monopoly provider, and make rates subject to refund/revision. Encourage new market entry. And please try to come up with some level of health services optimized for our increasingly aging populations and their fixed budgets. We have a majority of Boomers facing retirement with no material savings--the price gouging is completely contrary to the public interest.
Oh, and by the way, isn't Nestle doing something similar with water? No rights to potable water--what's your willingness to pay (as they pump down the aquifers in Central California).
Oh, and by the way, isn't Nestle doing something similar with water? No rights to potable water--what's your willingness to pay (as they pump down the aquifers in Central California).
4
Under current American corporate law, corporations must be governed for the benefit of their shareholders. Period.
That is why, if a corporation is a person, it is a sociopath.
That is why, if a corporation is a person, it is a sociopath.
While I too find this story unpalatable, I am not sure the comments or the article get to the root of the problem. ""The generic equivalent of Cuprimine, the drug taken by Mr. Mannes, is being sold by some foreign pharmacies for $1 a tablet, in contrast to the $260 Valeant is now charging." The solution is to get generic versions approved here so that market forces can work their magic to drive down prices. There are apparently 3000 backlogged generic applications at the FDA. It is a broken regulatory environment here in the US that is preventing competing generics from getting to market. Why don't we address that problem?
8
That would require increased funding for the FDA. Assuring drug quality and safety faster costs more money. Meaning either increased taxes or increased debt. The same politicians who are in the pocket of hyper-capitalistic profiteers are those who rail against both government taxes and government debt.
Yes, we are starving the beast. But it's the wrong beast.
Yes, we are starving the beast. But it's the wrong beast.
You are 100% right. Fix the FDA and the abuse goes away. It's amazing how so few can see the root evil.
The government system for approval regarding generic drugs allowed for sale in the US is working as intended.
At the behest of drug companies, Congress has created this system to allow the Pharmaceutical industry to maximize and protect their Cash Cow drugs.
We the general public and those who are ill are paying this extortion.
At the behest of drug companies, Congress has created this system to allow the Pharmaceutical industry to maximize and protect their Cash Cow drugs.
We the general public and those who are ill are paying this extortion.
Thanks to the NYTimes for making me aware of this.
"Valeant defended itself, saying in a statement that it “prices its treatments based on a range of factors, including clinical benefits and the value they bring to patients, physicians, payers and society.” "
Does Valeant really think ANYONE will accept this statement? This is criminal and whoever thought this scam ups a pariah upon American soil and should be taken to court and stripped of all profits.
"Valeant defended itself, saying in a statement that it “prices its treatments based on a range of factors, including clinical benefits and the value they bring to patients, physicians, payers and society.” "
Does Valeant really think ANYONE will accept this statement? This is criminal and whoever thought this scam ups a pariah upon American soil and should be taken to court and stripped of all profits.
5
There are no legal structures in place at this time in America that would allow that to happen.
I was astonished reading this article. Not by the behavior of the drug company - nowadays normal operating practice, unfortunately - but by the apparent existence of two anti-free market laws in the home of global capitalism. One is that forbidding the state to negotiate the price of the drugs it purchases; the other forbidding the import of drugs from abroad.
The first amounts to government subsidy, the second to trade protection. Both of them would be dismantled by competion promoting regulations in thee European Union.
It seems that what the US needs is more free-market legislation, not less. In fact, this is an example of gangsterism, not capitalism
The first amounts to government subsidy, the second to trade protection. Both of them would be dismantled by competion promoting regulations in thee European Union.
It seems that what the US needs is more free-market legislation, not less. In fact, this is an example of gangsterism, not capitalism
2
The issue here is that ONLY the USA govt allows RX prices to be "set by the market." All other major countries on the planet regulate Rx prices so that they cannot be exorbitantly high.
Our elected lawmakers have let us down on something that obviously needs fixing and which every other major country has already fixed.
It is telling that only 350 people commented on this important article.....
Our elected lawmakers have let us down on something that obviously needs fixing and which every other major country has already fixed.
It is telling that only 350 people commented on this important article.....
2
Not sure why these people don't buy the genetic version (PENICILLAMINE) of Cuprimine made by Indian pharmaceutical companies. As the article says Generic Penicillamine is being sold by some foreign pharmacies for $1 a tablet, in contrast to the $260 Valeant is now charges. The patents for these drugs have long expired. Even though not officially approved by US regulator FDA, good generic versions are being manufactured by Indian companies which, have very high standards.
Because the TTP will shut this down and extend American patent duration to all drugs manufactured in the countries covered by the trade pact. So no going to India for cheap generics, and no bringing them back or importing them.
Just another example of socialism for the rich. And capitalists explaining that it is all fair game -- that the government exists to provide riches for corporations rather than that corporations exist as a means for government to provide for the common good.
These guys just live off of quirks in the public's efforts to provide for the welfare of our citizens.
They should be stripped of their citizenship and sent to some island in the Arctic.
These guys just live off of quirks in the public's efforts to provide for the welfare of our citizens.
They should be stripped of their citizenship and sent to some island in the Arctic.
3
In any other industry, this type of price increase would be seen as extortive. While the insured may not be directly held hostage to this type of egregious act of greed, the end result is that those costs are passed on if those in need of the drug are to receive the drug. Pay or else. Seems criminal. But, as Hamlet would say, "I know not seems."
1
[...] A man reaps what he sows.
--Galatians 6:7
Welcome to capitalism. Make no mistake: this is not capitalism run amok; this is capitalism working EXACTLY AS INTENDED. If people have to die because they don't have money for drugs, then capitalism tells us that practically speaking, their lives aren't worth saving. If that strikes you as "just ain't right", you must channel your outrage at the right target: changing the system.
There are a thousand hacking at the branches of evil to one who is striking at the root.
--Henry David Thoreau
Hating the people who play the rules very well is not productive. If you deem such price increases to be degenerate, hating the game is the CORRECT reaction. The next correct step is to vote for people who wear "class warrior" as a badge of honor.
The truth is that everyone is a class warriors; the only question is which side you are on. GOP pretends not to be taking sides, yet all of their actions favor the rich.
The greatest trick the Devil ever pulled was convincing the world he didn't exist.
--The Usual Suspects
This would not be possible under single payer. If a company wanted to pick up a drug, and then mark up the price 4x, the government would just laugh at them.
Reminds me of the furor over so called Obamacare "death panels". Turns out, the alternative is still that a small number of individuals decides (via prices) who lives and dies, except the difference is that these people are not accountable to the public.
--Galatians 6:7
Welcome to capitalism. Make no mistake: this is not capitalism run amok; this is capitalism working EXACTLY AS INTENDED. If people have to die because they don't have money for drugs, then capitalism tells us that practically speaking, their lives aren't worth saving. If that strikes you as "just ain't right", you must channel your outrage at the right target: changing the system.
There are a thousand hacking at the branches of evil to one who is striking at the root.
--Henry David Thoreau
Hating the people who play the rules very well is not productive. If you deem such price increases to be degenerate, hating the game is the CORRECT reaction. The next correct step is to vote for people who wear "class warrior" as a badge of honor.
The truth is that everyone is a class warriors; the only question is which side you are on. GOP pretends not to be taking sides, yet all of their actions favor the rich.
The greatest trick the Devil ever pulled was convincing the world he didn't exist.
--The Usual Suspects
This would not be possible under single payer. If a company wanted to pick up a drug, and then mark up the price 4x, the government would just laugh at them.
Reminds me of the furor over so called Obamacare "death panels". Turns out, the alternative is still that a small number of individuals decides (via prices) who lives and dies, except the difference is that these people are not accountable to the public.
5
Companies like Valient and Turing are a direct result of the Democrats war against Big Pharma over the past twenty five years. The old line drug corporations - Merck, Pfizer, Roche, etc. - are shells of what they once were with R&D within these decimated and depleted. Most of these drugs associated with price gouging originated with traditional Big Pharma but were sold off as the purpose for these companies was undermined by Democrat policies.
But of course traditional Big Pharma was guilty of - let's see- paying for doctor dinners and employing attractive sales people. It didn't matter that they plowed 15% to 20% of profit into widespread drug development and that they employed hundreds of thousands in high paying jobs across the nation - now, mostly gone, by the way. Democrats unleashed an assault by generics of often questionable quality to punish these companies - never mind the drugs were reasonably priced to begin with - and so the industry adopted by shrinking.
So let all those simplistically blaming the Republicans for the rise of the Valiant and Turings know the true culprits are Democrat policies and controls now come to fruition.
But of course traditional Big Pharma was guilty of - let's see- paying for doctor dinners and employing attractive sales people. It didn't matter that they plowed 15% to 20% of profit into widespread drug development and that they employed hundreds of thousands in high paying jobs across the nation - now, mostly gone, by the way. Democrats unleashed an assault by generics of often questionable quality to punish these companies - never mind the drugs were reasonably priced to begin with - and so the industry adopted by shrinking.
So let all those simplistically blaming the Republicans for the rise of the Valiant and Turings know the true culprits are Democrat policies and controls now come to fruition.
Do you work for pharma? Where did you get this info from? You have no idea what you're talking about but you political affiliation is loud and clear.
88% of drug companies make nothing, Hillary’s plan would shut them down, drug companies that are developing important new drugs.
http://etfdailynews.com/2015/09/29/biotech-etfs-offer-a-great-buying-opp...
PhRMA: Clinton Proposal Would Turn Back the Clock on Medical Innovation
http://www.nytimes.com/2015/10/05/business/valeants-drug-price-strategy-...
http://etfdailynews.com/2015/09/29/biotech-etfs-offer-a-great-buying-opp...
PhRMA: Clinton Proposal Would Turn Back the Clock on Medical Innovation
http://www.nytimes.com/2015/10/05/business/valeants-drug-price-strategy-...
The only people who are in a position to stop this absurdity are members of the House GOP caucus. Who appear to be overwhelmingly pro-death. If you suffer a little bit and are impoverished en route to death, all the better.
3
Valeant spends 3% on research and development. I know several people that defend poor Big Pharma because 1) they spend so much on R&D that they have to recover their investment; and 2) prices are so high because those nasty attorneys are always winning exorbitant awards because someone had a side-effect.
1
The greed and avarice of the drug companies are beyond belief. The role of government is to keep this kind of capitalism under control. Congress is aiding and abetting this legal robbery of the public. Can they not see that a drug that costs $1 overseas but $470 here is a travesty? Why is it that these trade deals we make all over the world do not allow these lower priced drugs into our market?
4
Senators have the best health care insurance. They will not touch this issue due to the Pharma Lobby.
Government, with the help of NIMH and other agencies should take over the orphan drugs oversight and prevent this thuggery.
Alternatively, patients should be allowed to purchase these drugs from another country that is willing to sell for cheap.
Boycott these companies. Do not invest in their companies.
this is the NEW drug mafia
Government, with the help of NIMH and other agencies should take over the orphan drugs oversight and prevent this thuggery.
Alternatively, patients should be allowed to purchase these drugs from another country that is willing to sell for cheap.
Boycott these companies. Do not invest in their companies.
this is the NEW drug mafia
4
Obama made a deal with the pharmaceutical industry. Support Obama-care and you'll make a ton of money. I'll protect your profits and let you rob us blind. Hopefully, the next president (Bernie Sanders) will have the political skill to take on the pharmaceutical industry.
Rather than be outraged by J.M. Pearson, the creep that he is, we should be outraged at our politicians, who, unlike Pearson, have an obligation to look out for us.
Rather than be outraged by J.M. Pearson, the creep that he is, we should be outraged at our politicians, who, unlike Pearson, have an obligation to look out for us.
5
The real deal was made with Bush Jr. Medicare D made it ILLEGAL for the US government to negotiate lower drug prices. How is that a "Free Market"?
This is the kind of activity that government used to be able to regulate as a matter of course. Undoubtedly, we will see a return to some form of price regulation as a means of cost control for nationally subsidized healthcare insurance.
In the meantime, we can expect Democrats to make a political issue of this type of unseemly behavior. This is hardly the first incidence of price gouging, and friends of the pharmaceutical industry are having an increasingly tough time protecting the industry's profits and market share. The old arguments about protecting research investments and the cost to bring new drugs to market do not apply to long-existing, mature drugs that no longer have patent protection. Egregious acts of opportunism simply make the industry's greed all the more obvious.
Big Pharma's privileged place in American politics appears to depend upon one political party maintaining its hold over Congress. Insurance companies, normally thought of as allies of Big Pharma, now find themselves caught in the middle. Now that we have nationally subsidized health insurance for Medicare, the pharmaceutical companies and the insurance industry can no longer independently call the shots; and the 50-some failed votes that the Republican-controlled House of Representatives took to repeal the Affordable Care Act are case in point. Both initially supported the ACA, but, like Joel Chandler Harris' tale of the tar baby, both are now stuck, and no are longer mutually supporting.
In the meantime, we can expect Democrats to make a political issue of this type of unseemly behavior. This is hardly the first incidence of price gouging, and friends of the pharmaceutical industry are having an increasingly tough time protecting the industry's profits and market share. The old arguments about protecting research investments and the cost to bring new drugs to market do not apply to long-existing, mature drugs that no longer have patent protection. Egregious acts of opportunism simply make the industry's greed all the more obvious.
Big Pharma's privileged place in American politics appears to depend upon one political party maintaining its hold over Congress. Insurance companies, normally thought of as allies of Big Pharma, now find themselves caught in the middle. Now that we have nationally subsidized health insurance for Medicare, the pharmaceutical companies and the insurance industry can no longer independently call the shots; and the 50-some failed votes that the Republican-controlled House of Representatives took to repeal the Affordable Care Act are case in point. Both initially supported the ACA, but, like Joel Chandler Harris' tale of the tar baby, both are now stuck, and no are longer mutually supporting.
2
A box of 5 Lantus insulin pens in Switzerland is CHF85.75 ($88). Across the border in France it's about 30% lower (due to the strong Swoss Franc, higher costs and smaller market)
The only difference is the packaging and inserts are in German, French and Italian rather than English.
With our private insurance here we first pay a deductible and then 10% after that.
Switzerland is supposed to be expensive ....
The only difference is the packaging and inserts are in German, French and Italian rather than English.
With our private insurance here we first pay a deductible and then 10% after that.
Switzerland is supposed to be expensive ....
6
Commenter David of San Francisco ....."...companies involved should be heavily fined for the damage they have inflicted on the public and their executives should be jailed".
Yes, just like Wall Street executives and Big Oil executives have been held accountable for their many excesses these past years.
Until the American voter begins to understand the connection between the people it sends to Congress and the strife of American daily life ain't nothing going to be fixed.
Yes, just like Wall Street executives and Big Oil executives have been held accountable for their many excesses these past years.
Until the American voter begins to understand the connection between the people it sends to Congress and the strife of American daily life ain't nothing going to be fixed.
4
Let Medicare negotiate with the drug industry. We are letting the GOP and their pharmaceutical cronies write the bills and pass the laws that are as deadly as a bullet and a gun barrel.
5
I'm tired of hearing about a vague body of politicians who are legalizing this sort of dirty Capitalistic corruption. Hello New York Times.......can you provide a list of the politicians who supported and voted for this corruption? Can you make it simple for voters to see and understand? You could help, but this article, while it points out important information, doesn't mention one politician by name.
4
Actual real people -- US citizens -- are being sacrificed on the altar of capitalism. Drug pricing (and lack of affordable healthcare) is killing people. If you went into a person's house and stole bottles of the medicine they need to live, you would be sent to jail. But pricing it so high that they can't buy it is almost as bad. How many people (not even poor people) are not taking medicine (and not visiting the doctor) because of the cost?
The key fact that shows we're being taken for a ride: we are one of the only countries suffering from this insane level of economic injustice. We, almost alone, have our very lives held hostage by drug companies. America, land of the brave, home of the free. Government by and for the people? It's such a farce it's hard to wrap your mind around it. When will the American people wise up and demand reform of the medical system and regulation of drug prices?
The key fact that shows we're being taken for a ride: we are one of the only countries suffering from this insane level of economic injustice. We, almost alone, have our very lives held hostage by drug companies. America, land of the brave, home of the free. Government by and for the people? It's such a farce it's hard to wrap your mind around it. When will the American people wise up and demand reform of the medical system and regulation of drug prices?
5
These nefarious corporate behaviors are well, perhaps even best, addressed with changes in tax policy. In the age of super-computing supercomputers and tell-all algorithms, it is certainly possible to design a tax code that allows the Body Public to claw back these ill-gotten spoils. By all means, raise the price from $13 to $750 - then let's tax that $737 difference at 90%.
1
Pharmaceuticals may cry about the costs of developing drugs, but the self evident truth lies in the company's profits. Society will need to set profit ceiling not just for fairness sake but because when unchecked, profit undermines market economy. Excessive profit is a direct consequence of lack of competition. Patents were created as an incentive to develop an easily copied product or service. But once the initial investment costs are recouped and original creators are handsomely rewarded, there should be no secondary market for speculative patent trading. Excessive profit inevitably accumulates among a small portion of people who have trouble spending it in a way that stimulates jobs for all those people who spent the money on the overpriced product.
Same argument can be applied to every market sector that is dominated by a few companies that set the profit as high as the captive consumer market can bear.
Accumulated profits are not spent on
after the investment costs have been paid off.
Same argument can be applied to every market sector that is dominated by a few companies that set the profit as high as the captive consumer market can bear.
Accumulated profits are not spent on
after the investment costs have been paid off.
1
This is hardly the first time that unrestrained capitalism has killed people. Either we vote for representatives who will outlaw such practices, or the next victim could be you or a loved one.
2
Got to love the free-market!
Yea Capitalism!
Gee, wonder why we can't negotiate for better prices like the rest of the world?
Good thing we are so sold on Single Payer being disastrous. Wouldn't want better health care at cheaper rates with better out comes. No sir. No thanks!
We need the Insurance Corp. to make huge profits from our sick loved ones.
It is mandatory that the Pharmaceuticals Corp. make huge profits from the sick and dying too.
Who sells this drivel to Americans? Are own politicians. They should all be required to wear lobbyist and sponsors and donors advertisements just like Nascar drivers. It might make their Flag Lapel Pin look too small however and take up room on their suits that could be used to grift more money.
So who is the only candidate looking to bring us Single Payer, ie. Medicare for all?
Yep! Senator Bernie Sanders!
We can change things if we Vote!
Get. Out. and Vote!
Yea Capitalism!
Gee, wonder why we can't negotiate for better prices like the rest of the world?
Good thing we are so sold on Single Payer being disastrous. Wouldn't want better health care at cheaper rates with better out comes. No sir. No thanks!
We need the Insurance Corp. to make huge profits from our sick loved ones.
It is mandatory that the Pharmaceuticals Corp. make huge profits from the sick and dying too.
Who sells this drivel to Americans? Are own politicians. They should all be required to wear lobbyist and sponsors and donors advertisements just like Nascar drivers. It might make their Flag Lapel Pin look too small however and take up room on their suits that could be used to grift more money.
So who is the only candidate looking to bring us Single Payer, ie. Medicare for all?
Yep! Senator Bernie Sanders!
We can change things if we Vote!
Get. Out. and Vote!
2
Let's cut out the euphemisms. CEOs and other executives of these pharmaceutical companies are committing murder for profit. They should be indicted and charged as such for every patient who dies because he or she can't afford the exorbitant prices of lifesaving drugs--drugs that cost the companies nothing to develop, and mere pennies to produce. If I were on the jury and these executives came before me, I'd vote for life without parole. And they could consider themselves lucky, because I don't believe in the death penalty.
1
The FDA should set drug prices. Period.
Wow what a rip off! One of my family members has to take Mephyton which is just vitamin K and I didn't realize the price had gone from 9$ to 58$!! (Thank you insurance) I remember telling my vet how much the pills were at 9$ and he said he charged 25cents for a doggy version! Maybe we all need to go the vet to get what we need!!! Notice how utterly uninterested this company is in research and development. This is good business for our portfolios and retirement, but you'll be spending all the money you made on your stocks trying to pay for the medications you need and can't afford! Ha how ironic is that!
1
Who would have thought that in 2015 we would see return of the ages of the Pirates and the buccaneers. It's not just those drugs mentioned. Anti hypertensive and diabetic drugs are also being increased by 400% or more. While the news media is busy investigating Hillary's emails, malfeasance like this from corporate America goes unchallenged.
3
"..... a duty to shareholders to wring the maximum profit out of each drug".
There is the crux of the problem. Profit ahead of people. In an unfettered capitalistic system, the only right is profit, the only wrong is loss. As a nation we have no moral authority at all when basic human dignity, safety and health are ground down under the heel of maximized profits.
There is the crux of the problem. Profit ahead of people. In an unfettered capitalistic system, the only right is profit, the only wrong is loss. As a nation we have no moral authority at all when basic human dignity, safety and health are ground down under the heel of maximized profits.
2
Pearson and his board of directors should lookup "satisfice."
The board should fire him. Any director on other corporate boards should be kicked off those boards for incompetence.
Everyone who is involved in serving Valiant, buying or recommending its stock and otherwise making money off the company should be identified, profiled.
Demand to know their justification for allowing an incompetent and irresponsibly greedy CEO to give their company the horrible reputation that he is imposing on it on his way to the Forbes 400 billionaire list.
FDA should ease the approval process for generic drug competitors. And the big pharma companies should launch high-profile rush programs to produce those drugs and sell them at reasonable prices. Meanwhile, I also think that foreign countries that impose price controls that shift the cost of researching, developing and marketing drugs to American consumers and taxpayers should be somehow forced to let orphan drugs be sold at market prices, which would a lot lower than those being extorted from patients and insurers by Pearson and his ilk.
The board should fire him. Any director on other corporate boards should be kicked off those boards for incompetence.
Everyone who is involved in serving Valiant, buying or recommending its stock and otherwise making money off the company should be identified, profiled.
Demand to know their justification for allowing an incompetent and irresponsibly greedy CEO to give their company the horrible reputation that he is imposing on it on his way to the Forbes 400 billionaire list.
FDA should ease the approval process for generic drug competitors. And the big pharma companies should launch high-profile rush programs to produce those drugs and sell them at reasonable prices. Meanwhile, I also think that foreign countries that impose price controls that shift the cost of researching, developing and marketing drugs to American consumers and taxpayers should be somehow forced to let orphan drugs be sold at market prices, which would a lot lower than those being extorted from patients and insurers by Pearson and his ilk.
3
One more example of how a society bereft of morals feeds on the social carcass of its own people. Corporate honchos turning into hyenas is a pernicious practice and needs to be nipped early, else there will be a big social price to pay. Investors need to punish such acts and not reward behavior bordering on the unethical and fleecing its most important constituent - its customers. Governments need to step in and rein in exploitation and monopolistic practices. Conscientious doctors should alert the patients and system to keep these greedy players in check or expose their nefarious designs.
2
We are working on the wrong solution. Most of these drugs are not patent protected. Let the foreign producers into the US market. Allow negotiated prices by the government across all programs including Medicare, Medicaid, Veterans, the Military and Federal Employees. Deny patent protection for old drugs with irrelevant formulary changes.
The back of Valent can be broken within 12 months. The inflation in drug prices will slow down or even reverse. Competition is the answer.
Of course, the drug companies will scream. They brought it on themselves.
The back of Valent can be broken within 12 months. The inflation in drug prices will slow down or even reverse. Competition is the answer.
Of course, the drug companies will scream. They brought it on themselves.
6
"For now, with Congress in the hands of Republicans and election season in full swing, quick government action on drug prices is considered unlikely."
That pretty much tells you all you need to know about why no one should ever vote for a Republican.
That pretty much tells you all you need to know about why no one should ever vote for a Republican.
14
If the company has a monopoly for a particular drug but no patent price fixing should be an antitrust violation.
4
This is what unrestrained capitalism looks like, and what it does. And what it will do in every field, until there is constraint on the greed of those with power and wealth. That only comes from government, and from regulation. What will it take for us to see it? Whose deaths, how close to ourselves, will it take?
11
This is what restrained capitalism looks like. Valeants entire business model is predicated on FDA acting as their B team, blocking cheaper generics from Canada, Europe or India from entering US.
As a long time employee within Pharma, this practice is clearly unethical. Drugs are not, and cannot be, treated as a "normal" commercial good. If Taylor Swift suddenly raised the price of her hit album by a factor of 100, I would not buy it. These folks do not have a choice.
12
Wasn't anti-monopoly legislation meant to stop these kinds of behavior?
6
How come the funding for basic research into new drugs falls mainly on US consumers and taxpayers, when most of these companies are "international"?
3
Actually it doesn't. The US tax payer funds a large amount of basic health research, but this is not direct research into new drugs. Sometimes discoveries made in academia lead to new drugs, but not always and its not the primary purpose. Pharma companies also spend billions on R&D. Unfortunately, it takes a lot to make a new drug (something like 2 billion from R&D to market). Still one should never find it acceptable that an old off patent drug has such an insane price increase.
Actually it does....indirectly...Why do we (via US government) allow "international" drug companies to float drug prices here in the US but tolerate strict price controls in other countries? Wait till Donald Trump hears about this.
This all-too-familiar exploitation of vulnerable patients by Big Pharma will have consequences: patients will rebel and increasingly either find ways to get their medications from sources outside the U.S., or else they will abandon Western medicine and look to alternative therapies like homeopathy or ayurveda.
4
Medicare for All and then rewrite the law to allow Medicare to negotiate the cost of the drug.
14
" It says patients are largely shielded from price increases by insurance and financial assistance programs the company offers, so that virtually no one is denied a drug they need."
That is the usual defensive drivel. The drug insurance companies are not doing charity work. Any expense they have is passed right along to their customers in the form of higher premiums and deductibles as well as fewer benefits. Ditto for the government or 'assistance' programs - all must recoup costs somewhere. That somewhere is the consumer and the taxpayer.
It is time to allow Medicare to negotiate drug prices; to allow consumers to buy from foreign countries; and to stop the nonsense of allowing the few to gain wealth at the expense of the very lives of hoi polloi.
That is the usual defensive drivel. The drug insurance companies are not doing charity work. Any expense they have is passed right along to their customers in the form of higher premiums and deductibles as well as fewer benefits. Ditto for the government or 'assistance' programs - all must recoup costs somewhere. That somewhere is the consumer and the taxpayer.
It is time to allow Medicare to negotiate drug prices; to allow consumers to buy from foreign countries; and to stop the nonsense of allowing the few to gain wealth at the expense of the very lives of hoi polloi.
17
What happens if one day J. Michael Pearson of Valeant has an unexpected, dire emergency, and flags down the only help he can get from a passerby who happens to be someone who can't afford Valeant's meds which would save that person's life...and that person says he is in a hurry and too busy to help him, no matter how much billionaire Pearson is willing to pay? Ditto for the members of Congress who are paid off by big Pharma, and who refuse to remediate this issue. As the old saying on SNL said..."you never know"!
17
I'm fine with hitting pharmaceuticals with a one two punch. First, forbid them from direct to consumer advertising. Then, have the government negotiate the price of all drugs, similar to what is done in other industrialized nations. It will not cure all of our healthcare cost issues, but is sure to make a reasonable dent. What is happening in this country is simply unsustainable.
49
So Citizens are bankrupted while Congress Twiddles and earns big bucks & generous Health Care Benefits for doing Nada while taking Big Bucks from Lobbyists & their Contributors? What a useless bunch! Congressional Reps on the DOLE, need to be VOTED OUT OF A JOB!
40
All you voters who don't bother to vote, listen up. Drug companies like Turing and Valeant can get away with "the public be damned" price increases because all you voters forget it's still one man one vote that can force legislature office holders choose to pass drug price controls or get tossed out of office on their butts.
Cost of research and development argument is a crock with drugs long past their patent protection. So is jacking up prices in the name of profits for shareholders; in choice between shareholder profits and consumer affordable medicine, to hell with profits.
All you voters, listen up. Election year 2016 starts this coming November 2015.
Cost of research and development argument is a crock with drugs long past their patent protection. So is jacking up prices in the name of profits for shareholders; in choice between shareholder profits and consumer affordable medicine, to hell with profits.
All you voters, listen up. Election year 2016 starts this coming November 2015.
36
Wouldn't prosecution of the responsible parties under the antitrust laws and RICO be appropriate?
22
Sadly, what they did was completely legal at the time. Close the loopholes! In the meantime, make sure these people get the reputation they deserve and their families also suffer for it. I'm sure it was no fun to be Mrs. Hermann Goering or the Himmler kids after the war.
2
I work in advocacy and the reality of the amount of treatable conditions that go untreated in our society because people either have no insurance or insufficient insurance to afford the medications or procedures that could significantly improve or cure their conditions is criminal. People become ill, lose their jobs, have no insurance or medicaid that only provides the bare minimum, can't afford their meds, and become sicker and sicker. This prevents the likelihood of them returning to work and then they need long term government financial and medical assistance, which provide for the lowest priced and not necessarily best options.
The same and even worse is happening to older people, who have chronic illnesses that require constant medication. That we live in a society that allows profiteering on human pain and suffering, but feels morally superior and exceptional to so many other cultures and ethnic groups is really disturbing. The cost of medications have been out of control for quite some time. The amount of money these people were paying in contrast to their incomes was already very high. The drug companies have taken pricing to the extreme and shown just how much they can get away with under the time honored tradition of "maximizing profits" for investors/shareholders.
The same and even worse is happening to older people, who have chronic illnesses that require constant medication. That we live in a society that allows profiteering on human pain and suffering, but feels morally superior and exceptional to so many other cultures and ethnic groups is really disturbing. The cost of medications have been out of control for quite some time. The amount of money these people were paying in contrast to their incomes was already very high. The drug companies have taken pricing to the extreme and shown just how much they can get away with under the time honored tradition of "maximizing profits" for investors/shareholders.
26
Perhaps physicians should refuse to treat J. Michael Pearson and his ilk...
17
Do not count on it. PHysicians are now talent their marching orders from insurance companies and Obamacare.
Val in Brooklyn, NY
First, my fingers are crossed for Mr. & Mrs. Mannes, and anyone going through this nightmare. I read the article, some of the comments and am horrified.
My mother turned 81 last month. She's got kidneys, blood pressure, and both rheumatoid and osteoarthritis. Obviously, she's on at least one prescription drug.
Questions, feel free to me correct if I'm wrong:
1. When does price gouging for life saving prescription drugs get called by its proper name--murder?
2. When will the C.E.O.'s, etc., realize they can't profit from the nationwide graveyard they're creating? Unless the government intervenes a lot faster?
4. With gerrymandered- Koch machine- fixed elections coming, will the government intervene?
3. Could someone please tell me that we are not having this conversation?
Submitted 10-4-15, 11:40 p.m. EST
First, my fingers are crossed for Mr. & Mrs. Mannes, and anyone going through this nightmare. I read the article, some of the comments and am horrified.
My mother turned 81 last month. She's got kidneys, blood pressure, and both rheumatoid and osteoarthritis. Obviously, she's on at least one prescription drug.
Questions, feel free to me correct if I'm wrong:
1. When does price gouging for life saving prescription drugs get called by its proper name--murder?
2. When will the C.E.O.'s, etc., realize they can't profit from the nationwide graveyard they're creating? Unless the government intervenes a lot faster?
4. With gerrymandered- Koch machine- fixed elections coming, will the government intervene?
3. Could someone please tell me that we are not having this conversation?
Submitted 10-4-15, 11:40 p.m. EST
25
How could Obama let this happen?
Canada negotiates low prices for drugs developed by American firms. How about the feds negotiates lower prices for anything from this Canadian firm?
Canada negotiates low prices for drugs developed by American firms. How about the feds negotiates lower prices for anything from this Canadian firm?
9
Unfortunately Obama settled for universal health insurance (sort of). What we need is a universal healthcare system. No need to have "insurance" for conditions we all know we are going to be afflicted by.
3
"How could Obama let this happen?"
Ed, please pose this question equally to the 535 Congressional reps many of whom under the guidance of Boehner and McConnell from Day One opposed any citizen-benefit legislation which current administration might ever have proposed.
Ed, please pose this question equally to the 535 Congressional reps many of whom under the guidance of Boehner and McConnell from Day One opposed any citizen-benefit legislation which current administration might ever have proposed.
This is what they call "wringing the inefficiencies from the marketplace." The rich guys eat caviar while the regular guys are dying.
18
I have no objection a capitalist being as ruthless as possible in the pursuit of profit. That's the true nature of capitalism, and it would be better for people to be able to clearly see it for themselves. 'Capitalism with a human face' is far more sinister: the pursuit of wealth is just as ruthless and calculated as ever, but the token, toothless prohibitions against enterprise leaves people blind to the true nature of the economic system they find themselves living under. Make no mistake about it, your lives do not matter to the capitalists like J. Michael Pearson.
19
That's why we have regulations -- to protect people. Pharmacy should be highly regulated. The FDA does that on the drug approval side of the equation, but there ought to be tight regulation limiting obscene list prices.
4
How and why is this not against the law? And how does a piece of human garbage who makes money in this manner sleep at night? Can't find honest work?
23
If “products are sort of mispriced and there’s an opportunity, we will act appropriately in terms of doing what I assume our shareholders would like us to do,” he told analysts in a conference call in April. That statement says it all, but I doubt any shareholder or fund has any idea about this "remedy" to "Right-price" Valeant's medicines.
1
The Valeant case illustrates that business cannot be only about money, because when it is only about money, then there are no values. We expect the government to curtail such egregious behavior.
26
This is beyond despicable,.
20
People don't have to have electricity to survive, but will need certain drugs to survive. Why do we regulate electricity, but not essential drugs?
35
This is yet another example of why our society should finally join other developed counties which provide basic health care to their people as a basic human right. If this conduct does not demonstrate the the fundamental immorality of our current for profit health care system, I don't think anything will. If a business plan of reaping huge profits by enormous price increases of medicine people need to survive is not immoral, I am not sure what would possibly qualify. I doubt the previous companies that made and sold these pharmaceuticals were doing so at a loss. Just because a practice is apparently legal does not make it moral or right. While I generally do not wish ill on anyone, it would be poetic justice if Mr. Pearson developed an incurable disease that his billions of dollars in blood money could not cure. I would wish him the same compassion he currently shows to his companies' customers.
35
As a physician this 100 fold plus price escalation is abhorrent. I have seen it with a number of old and useful medications. It is pure greed. That said, this is what for-profit medicine is all about. This is what the royalist republican party says is the future of medicine. The medical-industrial complex is well on its way to making a financial killing.
My altruistic profession has run head-on into the locomotive of capitalism and been squashed. I have now been a physician for 37 years. When I trained, I never heard any of my peers or mentors discuss 'profit' or making a lot of money. It was all about doing the best we could to help temper the ills of mankind. It was unethical to advertise or promote yourself. How times have changed.
It is going to get much worse before it gets better. What can you do? Keep the health that you were born with by eating properly, exercising regularly, get your vaccinations, give a little of yourself (it is better to give than receive), and stay away from those whose promises seem hyped (don't spend the rent money on them). Try to find a compassionate physician and stay away from the medical-industrial complex.
My altruistic profession has run head-on into the locomotive of capitalism and been squashed. I have now been a physician for 37 years. When I trained, I never heard any of my peers or mentors discuss 'profit' or making a lot of money. It was all about doing the best we could to help temper the ills of mankind. It was unethical to advertise or promote yourself. How times have changed.
It is going to get much worse before it gets better. What can you do? Keep the health that you were born with by eating properly, exercising regularly, get your vaccinations, give a little of yourself (it is better to give than receive), and stay away from those whose promises seem hyped (don't spend the rent money on them). Try to find a compassionate physician and stay away from the medical-industrial complex.
155
Unfortunately, vaccinations have fallen under the same for-profit mentality. Do you really think the harms of vaccines are fully stated? That would lead to far fewer sales, wouldn't it? So what do we do? We write fictitious science-- this happens all the time, if you don't believe it you haven't been paying attention. We "prove" safety, and just as we ignore all the parental reports of vaccine harms, so do we ignore all the "real" science that points to the toxicity of ingredient such as aluminum and mercury in vaccines. Naturally someone out there, and many physicians, will tell me to get up to date on mercury, and for them my reply is: multi-dose flu, meningococcal, and tetanus toxoid, and why don't you know about this? The corruption of medicine, and of medical science, runs far deeper than a few companies jacking up the price of meds. Vaccines are useful, yes, but jacking up sales by pumping kids with more and more vaccines whose safety is very much in debate and whose immunological consequences haven't been fully explored is symptomatic of putting profits first and safety pretty low. Our kids pay for this. Vaccinate for smallpox? Yes. Force Gardasil on teenagers? Only if you're insane or if you believe that all is sweetness and light in the world of vaccines.
After reading your response, Kirk, I would like to ask if you are able to explain more about "those whose promises seem hyped".
1
I wonder how the CEO of Valeant sleeps at night.
I imagine that he's not sleep so well now that his greed has aroused the ire of legislators.
It's beyond ugly....
I imagine that he's not sleep so well now that his greed has aroused the ire of legislators.
It's beyond ugly....
17
Valeant Pharmaceuticals International is a Canadian company with an American CEO, J. Michael Pearson.
5
Just a guess ..on top of a pile of money? (Ht the simpsons)
"The generic equivalent of Cuprimine, the drug taken by Mr. Mannes, is being sold by some foreign pharmacies for $1 a tablet, in contrast to the $260 Valeant is now charging."
Perhaps we need to reopen the discussion of enabling Americans to buy drugs overseas legally. Is the generic alternative not permitted for sale in the US because it has not passed FDA testing? Did it pass the testing regimens of other advanced industrial countries? Under what conditions should the FDA accept the tests submitted to regulators in Canada, France or Switzerland even if the drug has not passed muster in the US? Should there be an expedited method to allow foreign competitors to sell generics in the US if the price of domestic products is suddenly raised?
I watched an interview with Martin Shkreli, the head of Turing. He makes Gordon Gekko look like Mother Teresa.
Perhaps we need to reopen the discussion of enabling Americans to buy drugs overseas legally. Is the generic alternative not permitted for sale in the US because it has not passed FDA testing? Did it pass the testing regimens of other advanced industrial countries? Under what conditions should the FDA accept the tests submitted to regulators in Canada, France or Switzerland even if the drug has not passed muster in the US? Should there be an expedited method to allow foreign competitors to sell generics in the US if the price of domestic products is suddenly raised?
I watched an interview with Martin Shkreli, the head of Turing. He makes Gordon Gekko look like Mother Teresa.
33
The reason pharmaceutical companies don't like this, is that they do the same gouging, just not as obvious. If people start getting serious about excessive price of health care unrelated to cost, much of big pharma's business model will be challenged too.
19
Drug prices need to be REGULATED. As they are elsewhere. Period.
28
The same pills can be purchased much cheaper in Canada because the Canadian government represent the consumer and Uncle Sam is beholden to drug companies and hospitals. Not only FDA routinely extends the expired patents for new usage and many doctors are paid off with generously free vacations and commission in proportion to the number of prescription.
15
Don't look to Washington for help — the politicians are corrupted by drug industry money.
The only person that can help us may be El Chapo the Mexican drug lord. Maybe he can use his tunnel network to smuggle the $1 Cuprimine equivalent available in foreign countries, that Valeant is charging $260 for.
El Chapo, help us!
The only person that can help us may be El Chapo the Mexican drug lord. Maybe he can use his tunnel network to smuggle the $1 Cuprimine equivalent available in foreign countries, that Valeant is charging $260 for.
El Chapo, help us!
19
At this point the cartels would make more money than smuggling heroin and pot, and would be providing a humanitarian service at the same time.
2
I've read enough articles exposing corporate sociopaths like these. I'd like to read an article or two listing what I can do about it.
23
Vote for Bernie. That's what you can do about it.
It used to be that when drugs went generic then they were cheap and available. Now you have companies like this. As a health care provider I have seen many instances of this, such as with colchicine (for gout) and doxycycline (an antibiotic). This should simply not be allowed as a matter of public policy. I have also seen a drug that has a generic form that used to be available in the U.S. but now you are unable to prescribe it here. I then found out it was available as a generic in Canada for less than 10% of the price here. This should simply not be allowed. And this company's rationale is that they have a duty to their shareholders?! What this company does should simply be outlawed.
26
Valiant should win some sort of negative award; one could call it the Ann Coulter sleaze award or the Heinrich Himmler award for an obscene business model.
20
Mr. Pearson may have become a billionaire on the pain of many patients, whether tens, thousands or millions, but very many folks have lost money by investing in drug companies.
I have calculated the share prices of Bristol Meyers Squibb, Eli Lilly, J&J, Pfizer & and the British firm Glaxo Smith Kline. As Squibb, which peaked at $75 in 1999 then for several years stayed at low $30s, but now its up again to reach $62, all of them except J&J fared poorly. Even highly volatile Amgen reached $75 in 2000, but for the next 12 yrs, it stayed below that, though more recently it went over $180. Thus more investors lost money than they they made any by investing in drug companies.
The CEOs of these firms haven't made much more than the average for CEOs of top 300 or so firms. Then who gained at the pain of these patients? Actually few. What's the point in charging such exorbitant prices?
Americans spend an estimated $374 billion on medicines annually. If the drug-patents are abolished and the taxpayers pay for the entire R&D budgets of all US based firms, it would be <$60 annually. But then the $374B will drop to about $60B plus another $100B or so. Still the total expenses for taxpayers would be about half of what they pay now.
On top of that some 5 billion people in the developing countries will be able to afford life-saving drugs, and hundreds of thousands of lives annually could be saved because of that - about 10 million preventable deaths occurred in Africa of AIDS.
I have calculated the share prices of Bristol Meyers Squibb, Eli Lilly, J&J, Pfizer & and the British firm Glaxo Smith Kline. As Squibb, which peaked at $75 in 1999 then for several years stayed at low $30s, but now its up again to reach $62, all of them except J&J fared poorly. Even highly volatile Amgen reached $75 in 2000, but for the next 12 yrs, it stayed below that, though more recently it went over $180. Thus more investors lost money than they they made any by investing in drug companies.
The CEOs of these firms haven't made much more than the average for CEOs of top 300 or so firms. Then who gained at the pain of these patients? Actually few. What's the point in charging such exorbitant prices?
Americans spend an estimated $374 billion on medicines annually. If the drug-patents are abolished and the taxpayers pay for the entire R&D budgets of all US based firms, it would be <$60 annually. But then the $374B will drop to about $60B plus another $100B or so. Still the total expenses for taxpayers would be about half of what they pay now.
On top of that some 5 billion people in the developing countries will be able to afford life-saving drugs, and hundreds of thousands of lives annually could be saved because of that - about 10 million preventable deaths occurred in Africa of AIDS.
5
When fiduciary duty is placed higher than moral duty and when Medicare is not allowed to negotiate prices, then the unrestrained, over-pricing of drugs for the sake of shareholder profits (and CEO bonuses) regardless of the distress that results as a direct consequence, is the logical and apparently the desired result. When there is no regulation, ambitious, driven, greedy people will pollute our air, land and water, will recklessly exploit their access to our (retirement) assets and charge as much as they can for medications that they know we must have.
As long as we have greedy, unprincipled people we need regulations.
As long as we have greedy, unprincipled people we need regulations.
24
This man is killing many Americans. What's the penalty?
22
Ayn Rand must be very proud. Her disciples are being good little soldiers.
17
It seems you never understood Ayn Rand. Valeant will not survive one minute in a Rand Universe. Any person can buy these drugs for a few pennies from India and sell them for a buck here if the STATE that is FDA doesn't prevent it. Valeant only exists because of FDA and Congress.
Mr. Pearson. What a horrible human being.
11
The magic of the market!
13
Magic of market will fix the problem. Allow free import of generics from Canada and Valeant collapses in a day.
This is just plain disgusting. Nasty, nasty people who don't give a damn what I or anyone else think. 'Nough said.
8
The price gouging described in this article is not free market capitalism. It is monopoly capitalism.
In previous days, anti-trust laws broke up monopolies like Rockefeller’s Standard Oil of New Jersey. The old AT&T ("Ma Bell") was a monopoly that was at least regulated.
The activity described in this article is the criminal activity of monopoly capitalism raising its ugly head once again. We see it elsewhere in the US: in proposed mergers in the health insurance industry, which will reduce choice, and in the airline industry, in which 80% of US air routes are controlled by 4 airlines.
We do not need people like former FED chair, Alan Greenspan, telling us, “Let the markets regulate themselves”. The Great Recession, beginning in 2008, was the result of that mentality.
We need regulation to stem the criminal business activity that is growing in this country. Period.
In previous days, anti-trust laws broke up monopolies like Rockefeller’s Standard Oil of New Jersey. The old AT&T ("Ma Bell") was a monopoly that was at least regulated.
The activity described in this article is the criminal activity of monopoly capitalism raising its ugly head once again. We see it elsewhere in the US: in proposed mergers in the health insurance industry, which will reduce choice, and in the airline industry, in which 80% of US air routes are controlled by 4 airlines.
We do not need people like former FED chair, Alan Greenspan, telling us, “Let the markets regulate themselves”. The Great Recession, beginning in 2008, was the result of that mentality.
We need regulation to stem the criminal business activity that is growing in this country. Period.
26
"We do not need people like former FED chair, Alan Greenspan, telling us, 'Let the markets regulate themselves'".
It's interesting that the so-called "Federal" Reserve is not part of the government. Greenspan's employer, the "Federal" Reserve, is privately owned by its member banks. The costs of Federal Reserve operations, such as the purchase of mortgage-backed securities from the banks, which is known as "quantitative easing," are transferred to the nation's treasury where they become part of the national debt.
It's interesting that the so-called "Federal" Reserve is not part of the government. Greenspan's employer, the "Federal" Reserve, is privately owned by its member banks. The costs of Federal Reserve operations, such as the purchase of mortgage-backed securities from the banks, which is known as "quantitative easing," are transferred to the nation's treasury where they become part of the national debt.
3
Companies like Turing and Valeant should not exist. There is no benefit to society or to public and their existence. They are not making anything better more efficient or cheaper for anybody. They are not making anything new. They are the worst kind of parasites who make their money from overcharging already long time existing medication to a dependent, captive population. We all pay so a dozen of investors, "shareholders" can become richer. Shareholders of what? Of a joint criminal enterprise. Valeant and Turing should be treated like organized crime.
35
The fruits of Obamacare. Obama sold out to big Pharma to get his plan approved. It's funny nobody remembers. This is Democrat sanctioned theft in the name of establishing a legacy for Obama. Vanity, thy name is Obama.
1
Really, it was Obamacare that caused Valeant and Turing to mount these price gouging tactics? Please explain that logic.
14
Please.
5
Thank you for taking a time out from watching FOX "news", to explain all this to us.
9
Take generic drugs out of the for-profit marketplace, and put them in the non-profit marketplace. Period. There is no excuse for this kind of price gouging, and to use the mantra of "fiduciary obligation to shareholders" is obscene. Change the law, regulate the increases, and stop creating amoral billionaires.
19
Valeant was given a nearly 40 million dollar grant from the state of NJ to move their offices and keep about 500 jobs in state. It all stinks. The people can't win for losing. Please keep these important exposes coming and start posing questions to those who want our votes.
20
Sounds like an excellent question to ask Chris Christie and the other Republican candidates for President at the next debate. How many of them would agree that some type of price regulation would be appropriate in these cases?
6
They may have kept jobs in NJ but they also did an inversion to move their official headquarters to Canada, greatly reducing their US tax liability. The NYT had an article a few weeks ago talking about yet another international acquisition --- this one allows them to move debt onto their books in the US, reducing their tax payments even further.
They're spending a lot of time manipulating spreadsheets. Should we assume they're giving actual health the same attention?
They're spending a lot of time manipulating spreadsheets. Should we assume they're giving actual health the same attention?
1
What makes no sense is that there is typically a patent "life" on brand name drugs, meaning that after a set number of years, the drug goes generic. Is that different for orphan drugs, where the population of patients who need them is so small that they are not subject to a term on the patent? Wondering because clearly if these drugs are decades old, they should be available in generic form - and from abroad. Sadly, giving a tax break to these shadow companies that treat life sustain meds as assets rather than as necessities means nothing, because they don't pay taxes as they should. Sounds like we need a law that breaks the monopoly on these drugs and brings them in from abroad, Mars, Atlantis or anywhere that greed is not destroying life.
4
When I read this story, I literally had to go to the bathroom and vomit. The unbridled greed displayed by Big (and not-so-Big) Pharma just takes my breath away, and their retort that increased costs are mainly borne by insurance companies (as if that made it okay) just doesn't hold water, as the article shows. It is inconceivable to me that we have allowed this industry to call the shots with the lives of hundreds of thousands, if not millions, of people. What kind of society are we living in, when this despicable behavior can go unchecked?
Republicans were worried about "death panels" under Obamacare. Seems to me that they're here now, only being run by the pharmaceutical companies.
Republicans were worried about "death panels" under Obamacare. Seems to me that they're here now, only being run by the pharmaceutical companies.
169
May they rot in hell forever.
12
We have profitized healthcare, education, war fighting, and now prisons and can no longer afford any of them. Certain services should be socialized in a progressive society, as most modern day countries have long known. But not the US. And since we have outsourced most of the manufacturing jobs, privatized most of the critical infrastructure (with the USPS next on the list, to the joy of UPS and FEDEX) the only profit opportunities left for many corporations in the US are to use gauge pricing for the essentials (like cereal, like razors, etc). What a corruption of free market principals.
7
The USPS is as much a part of the "critical infrastructure" of the country as are candlestick and buggy whip makers.
Really? Maybe you should inform Amazon then. They now have a contract with the USPS for package delivery at about half the cost of FedEx and UPS.
http://www.bloomberg.com/news/articles/2015-07-30/it-s-amazon-s-world-th...
http://www.bloomberg.com/news/articles/2015-07-30/it-s-amazon-s-world-th...
2
As a physician I have faced price controls for years. Why should pharmaceutical companies not be subjected to the same policies? The simple answer is that Big Pharma is a big spender on our elected officials who pretty much let the industry do whatever it wants. The trough in this situation is not really provided by the people with the disease. There are not enough people with Wilson's disease in this country to sell out Giant's stadium. The real trough will be provided by your Uncle Sam through the medicare and medicaid programs. And guess who pays for those programs. And when are those bills paid: likely prospectively through some legislative twist. De Tocqueville predicted much of this 175 years ago.
83
These companies are mostly "Little Pharma",
but they do have share holders, who in addition to losing money on their stock, should be ashamed of themselves for investing in these companies.
but they do have share holders, who in addition to losing money on their stock, should be ashamed of themselves for investing in these companies.
Perhaps a bit less regulation is needed. Allow generics to be bought from any first world accredited pharmacy.
I would go so far as to say perhaps generics should have no insurance support (and brand copay doesn't start until the cheapest generic non-discount rate) at all until 10 percent of a person's income (not AGI, but income including rentier income) is met-- and have this apply to everyone from the poor to the elected representatives with their solid diamond "we don't care what you pay" medical plans. If you run a sample of meds through an app like GoodRx, you'll find brand meds are staggerly more expensive than generics; the only way this can happen if there is more than a few prescribers calling out brand instead of generics, with insurance companies insulating their members from the true bloated profits being paid to big pharma. Single generic meds are just a degenerate form of brand, single supplier pay or die.
Finally, maker fabrication of your own generic meds should be permitted. This is not quite possible yet, but at the nosebleed pricing of companies like Valeant it will happen much sooner; given the greed exhibited by big pharma, pirating of brand meds will only cause crocodile tears.
I would go so far as to say perhaps generics should have no insurance support (and brand copay doesn't start until the cheapest generic non-discount rate) at all until 10 percent of a person's income (not AGI, but income including rentier income) is met-- and have this apply to everyone from the poor to the elected representatives with their solid diamond "we don't care what you pay" medical plans. If you run a sample of meds through an app like GoodRx, you'll find brand meds are staggerly more expensive than generics; the only way this can happen if there is more than a few prescribers calling out brand instead of generics, with insurance companies insulating their members from the true bloated profits being paid to big pharma. Single generic meds are just a degenerate form of brand, single supplier pay or die.
Finally, maker fabrication of your own generic meds should be permitted. This is not quite possible yet, but at the nosebleed pricing of companies like Valeant it will happen much sooner; given the greed exhibited by big pharma, pirating of brand meds will only cause crocodile tears.
1
What else would you expect from corporations run for the benefit of the few and a government that serves the few?
5
Since Citizens United, greed and immorality have been laying there on the table with their legs twitching and their heartbeats getting stronger every profiteering day.
the only way to abort these horrific selfish and cruel practices is to make it impossible for these scum laden executives to remain in the shadows.
We need to plaster their names and their evil deeds on the banners of social media along with the politicians who accept their bribes. Scream their names from the rooftops until they go "viral".
J. Michael Pearson and his ilk should come to mind every time we think of "The Joker", or Volkswagen, or Charles Manson.
Only then will these conniving cowards and the pitiful corrupt lawmakers who make their craven actions possible even consider doing the right thing.
the only way to abort these horrific selfish and cruel practices is to make it impossible for these scum laden executives to remain in the shadows.
We need to plaster their names and their evil deeds on the banners of social media along with the politicians who accept their bribes. Scream their names from the rooftops until they go "viral".
J. Michael Pearson and his ilk should come to mind every time we think of "The Joker", or Volkswagen, or Charles Manson.
Only then will these conniving cowards and the pitiful corrupt lawmakers who make their craven actions possible even consider doing the right thing.
10
Anyone who reads this article, and who owns this stock is to blame outright for the gouging of Americans in their most vulnerable moments. If you can sleep knowing you own that stock, then you have no soul. Big Pharma is starting to make the Drug Cartels in Latin America and elsewhere look like the Tooth Fairy!
14
We have the best technologies medicine can offer yet the most expensive in the world. The juxtaposition here is that the health of Americans fall short of the treatment they receive. Our healthcare system ranks as one of the lowest in the world. The pharmaceutical industry is making sure we stay that way. Profits over life falls far below the ethics and morals of the average human being.
10
Each patient is an asset, a source of cash flows. Valeant is simply trying to maximize its profit from each asset.
Mr. Pearson's disciplined training allows him to view someone else's organs the same way he would a rental apartment investment.
(Human - Heart - Compassion = Mr. Pearson)
Mr. Pearson's disciplined training allows him to view someone else's organs the same way he would a rental apartment investment.
(Human - Heart - Compassion = Mr. Pearson)
8
This borders on criminal immorality. If the pharma industry can't regulate this rapacious greed, bring in the regulators. Period.
14
Gee, was this the "tyranny" that the second amendment was going on about?
12
If a gas station or hardware store in South Florida raises prices in anticipation of a coming hurricane there are laws to severely penalize the business for price gouging. Why are there not similar laws for this type of price gouging? Is it not the responsibility of government to regulate the negative aspects of unrestrained capitalism? We prohibit monopolies, why not this?
17
With physicians' reimbursements being tied to patient compliance and outcomes, patients' inability to purchase life-sustaining and life saving medications will ruin performance scores and reimbursement - to hospitals, too. Since only money talks in the US, let this strike a few painful pellets in the backside of some with "skin in the game" who also have a larger political voice than individual, medically impoverished dying patients and their families.
8
I was diagnosed with Wilson's Disease 45 years ago. I started taking Cuprimine and it saved my life--in fact it gave me my life. I have since had to switch to Syprine because of side effects of Cuprimine. I am eternally grateful to the scientists and doctors of developed these drugs and for the most part provided a cure for Wilson's Disease. Unfortunately the company that developed these drugs sold them to Valeant. My insurer is now paying Valeant over $30,000 per month for my medication. I pay $135/month copay. Over a the next three years this could amount to over $1 Million going to Valeant for a drug they had nothing to do with developing. This is obviously unsustainable. Either my insurer is going to stop covering the medication or something else will have to give. Why is this happening now? When did such blatant, ugly greed become acceptable?
269
"Blatant, ugly greed" had always been acceptable. After all, this is America, the mecca of Greed.
1
Republicans are too interested in exploiting the deaths of 4 Americans in Bengaaaaazi over 3 years ago for partisan attacks on Hillary to investigate US hedge fund billionaires 'gaming the system' on pharmaceuticals. In the meantime, buy these drugs from Australia, Europe or Canada, a 3 month supply is legal for users, and the total cost will be less than the Medicare deductible. Trust Republicans to not care about whether Wall Street tycoons try to kill you.
17
Do the people who read these articles go off to their investors and tell them not to invest in companies like these? Of course not. They don't know they are invested in these companies because they invest through funds. Where is the mechanism that helps those that make their money in these schemes but don't know it affect their investments to show they have a conscience?
4
Only the Democrats on the House Oversight Committee want to look into this??
And the stock market goes down, pharm sector, because our economy is based on this rapacious behavior.
If our leaders have been waiting for us all to get angry enough to insist on bargaining for best prices, I think we're there.
It's obscene.
And the stock market goes down, pharm sector, because our economy is based on this rapacious behavior.
If our leaders have been waiting for us all to get angry enough to insist on bargaining for best prices, I think we're there.
It's obscene.
12
This state of affairs was entirely predictable and is a direct reflection of Republican policy of deregulation, eroding workers' rights, prohibiting Medicare to negotiate drug prices, and support of profits over people in all ways. The result is preventable suffering, preventable harm and preventable deaths.
Citizens, awaken and get to the voting booths to get rid of these malevolent and anti-Constitutional legislators. They are killing your parents, your spouses, your children and your neighbors. They may well be killing YOU.
Citizens, awaken and get to the voting booths to get rid of these malevolent and anti-Constitutional legislators. They are killing your parents, your spouses, your children and your neighbors. They may well be killing YOU.
17
But, but,but they are pro- life.
6
What rate of increase is a person on Medicaid paying?
2
Just travel to the UK and get the drug for $6.
3
This is especially hard on the self-insured organizations, like the university system I work for. Our insurance system does not make a profit, and has the primary goal of optimizing the health of each person who works with us. Because we don't have billions in the bank, we see the impact of a single neonate or cancer case, and need to adjust payments in other ways. So when a company does this sort of dastardly move, there is no cushion to absorb the shock.
Health should not be for sale.
Health should not be for sale.
103
Why? Always has been so far. Perhaps if we voted Republicans out...
2
Medical industry should be not for profit, but America loves capitalism. Well, here it is....Makes ya want Bernie now, right? We can be so dumb to allow this to happen. Money, money, money. When will we learn?
8
Maybe we should start by taking all the profit out of research and out of medicine-- the government will fund it all. How naive, you say! But according to Modern Monetary Theory, we have the money. It's there already, and always has been. If we run a huge deficit-- who cares? If the government spends $100 billion on new medical research next year, how do we pay for it? We literally create it out of thin air. Think about it-- where does the government's money come from? It can take all the dollars we pay in taxes and shred them and still have plenty of money. And when it comes time to pay back, then what? Well, we simply change the -$100 billion in the account to a zero. Think about it-- the government is the issuer of currency and always has enough. If inflation's a problem we raise interest rates or increase taxes, but the problem is never that "we don't have enough money." After all, we always have money for wars, and the NSA has all the money it wants.
This article is nothing more than liberals making stuff up, everybody knows the USA has the best health care system in the world because it isn't run by the government, and anyone who doesn't believe that is just looking at the facts.
4
Please you have to be joking. Maybe for the top 1 percent but not the rest of us who are one illness away from bankruptcy even with expensive health insc. You seem to be living in gop lala land.
3
Is this why we are ranked among the lowest in healthcare among developed countries world-wide, but first in cost?
Health care is by definition not a perfect market. People do not have perfect information and drugs patents create monopolies for treatment.
It is a public good, like the Fire Department.
How much could the Fire Department charge a homeowner when their house is burning to the ground? Would we ever let market prices dictate a situation such as that?
In health care we do. Literally people will die without access to certain drugs while drug companies price gauge given that knowledge.
These companies like Valeant that do no medical research but simply buy up drugs and gauge consumers are part of the reason the United States pays by far the most per capita and as a percentage of GDP for health care costs.
The government could use its buying power as a counter-weight to this price gauging, but of course, Congress wrote laws specifically preventing Medicare from bargaining over prices with drug companies.
Droves of Republican congressmen who passed the expansion of Medicare Prescription Part D that prevented the government from price bargaining immediately quit Congress and joined drug companies and drug lobbying firms at many multiples of the their previous salaries.
This is the evil unfettered capitalism that Pope Francis spoke about and it must be broken apart.
The companies involved should be heavily fined for the damages they have inflicted on the public and their executives should be jailed.
It is a public good, like the Fire Department.
How much could the Fire Department charge a homeowner when their house is burning to the ground? Would we ever let market prices dictate a situation such as that?
In health care we do. Literally people will die without access to certain drugs while drug companies price gauge given that knowledge.
These companies like Valeant that do no medical research but simply buy up drugs and gauge consumers are part of the reason the United States pays by far the most per capita and as a percentage of GDP for health care costs.
The government could use its buying power as a counter-weight to this price gauging, but of course, Congress wrote laws specifically preventing Medicare from bargaining over prices with drug companies.
Droves of Republican congressmen who passed the expansion of Medicare Prescription Part D that prevented the government from price bargaining immediately quit Congress and joined drug companies and drug lobbying firms at many multiples of the their previous salaries.
This is the evil unfettered capitalism that Pope Francis spoke about and it must be broken apart.
The companies involved should be heavily fined for the damages they have inflicted on the public and their executives should be jailed.
180
Please pardon my misspelling of price gouging as gauging.
When I’m particularly angry, that is more likely to happen!
When I’m particularly angry, that is more likely to happen!
1
The cat is out of the bag - - prices are set by what the market will bear - not by some mysterious "what it is worth" and because drug companies need to make back their R&D costs.
And when you have a monopoly and a life-saving drug that works - people with enough money will pay anything to get the drug.
The perfect product. Zero work to own it and pure profit from desperate millionaires.
And when you have a monopoly and a life-saving drug that works - people with enough money will pay anything to get the drug.
The perfect product. Zero work to own it and pure profit from desperate millionaires.
5
This isn't just price gouging. It is extortion.
There are laws against extortion. Does the attorney general have what it takes to go after these drug thugs?
There are laws against extortion. Does the attorney general have what it takes to go after these drug thugs?
28
Bill Ackman from Pershing Square purchased 19M shares of Valeant recently.Follow the dollar."Great Humanitarian"-RIGHT!
8
A mirror image of Bain Capital: buy up functional, honest, useful companies and turn them into shameless profit machines.
American capitalism is severely broken and has lost its founding ideal of //enlightened// self-interest.
American capitalism is severely broken and has lost its founding ideal of //enlightened// self-interest.
15
What kind of country is this? We must have the most corrupt and despicable medical systems in the world and if we don't I can't even imagine how it could be worst.
People are too busy watching the NFL and shopping at Walmart to even stop and consider that sick people are one of the biggest revenue streams in this country.
Good luck with that.
People are too busy watching the NFL and shopping at Walmart to even stop and consider that sick people are one of the biggest revenue streams in this country.
Good luck with that.
18
Clearly, the issue has mostly to do with the delay in approving generic alternatives. Just speed up that process and the incentive to raise prices goes away. As usual, government regulation is the problem and not the solution.
1
Good point. Who cares about drug quality?
That's just silly. Are you aware that pharmaceutical companies spend millions to interrupt the sale and release of so-called ‘generics’? Are you aware that it is the pharmaceutical companies themselves that benefit from these strategies? The notion that, via waving a magic wand, removing government regulation would see companies acting magnanimously or that these companies would be so deeply engaged in competition that prices would only become lower and lower is absurd. There is neither economic data nor any basis in reality to make such a claim. Of course, if you want to talk about guns and butter from an econ. 101 class and remove any consideration of human psychology – I guess you can try to do that.
Far too many people think that Government is ‘the problem’ and that it is Government that is the source of all our ills and that is absurd. As others have said, we live in an oligarchy – a plutocracy – not because Government over-regulates or is too large. We live in a plutocracy because that is what the richest and the heads of corporations want.
How this is not clear to people is truly baffling and, sadly, until individuals like yourself begin to grasp this reality and step away from the tired meme of ‘govt. regulation’ nothing will change. Because if you go after government you will have failed to address the real problem and that is clear corporate control of our civil society.
Far too many people think that Government is ‘the problem’ and that it is Government that is the source of all our ills and that is absurd. As others have said, we live in an oligarchy – a plutocracy – not because Government over-regulates or is too large. We live in a plutocracy because that is what the richest and the heads of corporations want.
How this is not clear to people is truly baffling and, sadly, until individuals like yourself begin to grasp this reality and step away from the tired meme of ‘govt. regulation’ nothing will change. Because if you go after government you will have failed to address the real problem and that is clear corporate control of our civil society.
8
We only need to speed the approval of generics. We aren't talking about approval of brand new drugs.
1
Many of these comments are misinformed when it comes to reflexively trashing Republicans. I am one and I am revolted by this situation, but it is not the apotheosis of capitalism and risk taking. In a competitive market, this company would, rightly, find itself with no customers in a nanosecond..
The fact is that this reflects anti-competitive behavior, tolerated and even abetted by our so-called representatives. Enormous amounts of money are destroying our system and, if you haven't noticed, most Democrats are eager to sip at that table, too.
Heck, I might even vote for Sanders, if the Democrats' infatuation with identity politics in coronating the first double X chromosome President doesn't rob him of the nomination.
The fact is that this reflects anti-competitive behavior, tolerated and even abetted by our so-called representatives. Enormous amounts of money are destroying our system and, if you haven't noticed, most Democrats are eager to sip at that table, too.
Heck, I might even vote for Sanders, if the Democrats' infatuation with identity politics in coronating the first double X chromosome President doesn't rob him of the nomination.
2
A lesson in free market capitalism and greed.
The GOP mantra, wed don't need regulations, the market keeps things in line.
The people that financed Valeant's debt knew that is how the would get their money back with interest. Ethics be damned, they will tell you what's food for Valeant is good for the economy. If other companies make a copy drug, it has to go through the FDA testing and approval process, so Valeant has the monopoly for at least two more years.
This is what J.D. Rockefeller did, it is what the Anti Trust laws were suposed to prevent. To understand why they dont work at present, lok the the Roberts court, and the Gran Old Prevaricators.
The major drug companies are worried because it can result in further regulation and restrictions, along with price controls.
The GOP mantra, wed don't need regulations, the market keeps things in line.
The people that financed Valeant's debt knew that is how the would get their money back with interest. Ethics be damned, they will tell you what's food for Valeant is good for the economy. If other companies make a copy drug, it has to go through the FDA testing and approval process, so Valeant has the monopoly for at least two more years.
This is what J.D. Rockefeller did, it is what the Anti Trust laws were suposed to prevent. To understand why they dont work at present, lok the the Roberts court, and the Gran Old Prevaricators.
The major drug companies are worried because it can result in further regulation and restrictions, along with price controls.
12
There should be a special room in hell reserved for J Michael Pearson.
16
Research, production and dissemination of medications are too important to entrust to for-profit entities. We can do the same research in tax-funded laboratories and clinical research settings, and produce the same drugs in not-for-profit factories.
People like Mr. Pearson are too greed-crazed to be allowed to assume duties like ensuring medications for all who need them.
Mr. Pearson sounds like he would do very well on a used-car lot. We need laws that keep people like him out of lines of work where lives hang in the balance.
People like Mr. Pearson are too greed-crazed to be allowed to assume duties like ensuring medications for all who need them.
Mr. Pearson sounds like he would do very well on a used-car lot. We need laws that keep people like him out of lines of work where lives hang in the balance.
8
Your money or your life!
22
This thing is, the mugger on the street has more integrity than these thieves in designer clothing. At least he doesn't pretend to be doing anything more than just stealing your money.
134
This is just one more example of how the health care industry is out of control. Yes, indeed, "this madness has to stop". But with republicans in control, don't look for lawmakers to help out.
15
As if it would be any different with Democrats--at least 99% of them--in charge. Democrats criticize the Republicans for prostituting their votes to Big Pharma only when they find themselves losing at the game. Bring on Hillary Clinton, who's just sure to be a real game-changer.
I'm a Republican, I hate this situation and I hate that big money has a way of swaying even the most idealistic (at least at the beginning) representatives.
I'm a Republican, I hate this situation and I hate that big money has a way of swaying even the most idealistic (at least at the beginning) representatives.
16
Hillary would be radically different, much as Jerry Brown has been for California.
4
Drug companies can raise prices, or charge whatever they want, as they simply can, if the market will pay. Remember when AT & T was a monopoly, how much long distance calls were. Monopolies are the model of choice followed by Oligopolies, if a monopoly won't fly. Remember another example, while fracking technology existed for a long time Oil companies in concert with Opec kept it under wraps so we paid as high as four dollars a gallon for gasoline. Point is, nothing new here with drug prices.
I happen to be a retired physician and can only say that this practice of ripping off the patients by raising the price of old life saving drugs for unregulated profit is unethical and unchristian and should be declared a crime against humanity.
286
The obvious solution is for the FDA to get its act together bureaucratically and become more efficient in approving generic drugs and competitive innovator drugs. The only reason Valeant has this opportunity is that the FDA is so CYA focused that they take forever to approve any application - innovator or generic.
3
If you want Valeant to stop this practice you'd better beat them to the punch and buy up these low priced drugs yourself and raise the price enough to where Valeant loses interest. If you don't do it they or someone else will. Clearly people who are dying are very motivated to pay whatever it takes to keep on living and you would be a fool to leave this money on the table. Of course no one likes sick people, they are just clingy and gross. Yuck. I'm glad someone has found a convenient way to keep them being productive members of this society especially as they get old. God forbid they become "takers". They should just read their bibles and leave the profiteers to make America strong again. God I love America!
3
"Valeant’s Drug Price Strategy Enriches It, but Infuriates Patients and Lawmakers"
First, the title is false. Most lawmakers, regardless of what they say publicly, support Big Pharma's rip-off of patients.
Second, Big Pharma's leaders are not much different from drug lords like Chapo Guzman. Guzman kills his enemies with guns. Big Pharma kills many of its patients with its price-gouging policies?
What is the difference?
First, the title is false. Most lawmakers, regardless of what they say publicly, support Big Pharma's rip-off of patients.
Second, Big Pharma's leaders are not much different from drug lords like Chapo Guzman. Guzman kills his enemies with guns. Big Pharma kills many of its patients with its price-gouging policies?
What is the difference?
8
When I get my investment performance statement (and yes I invest in these perfectly legal portfolios) and eventually my dividend check, I feel really good. I don't worry about anything else--who cares? It's about me and those closest to me. Like the man said: me me me!
People suffering so I can get some extra dough? Who cares--NOT MY PROBLEM. What IS my problem? My drive for "making it" even if it's making it look like I am putting the screws on supposedly undeserving victims? Paying $80,000 per semester for my kid's local Westchester private school, the $35k in Westchester property taxes on the modest Tudor style shack, the roof, furnace, the windows and then there's the swim club $1500/yr. Golf. Three cars, premiums, vacations. Face it, you're problems are just collateral damage--now shush up and go wave that flag.
People suffering so I can get some extra dough? Who cares--NOT MY PROBLEM. What IS my problem? My drive for "making it" even if it's making it look like I am putting the screws on supposedly undeserving victims? Paying $80,000 per semester for my kid's local Westchester private school, the $35k in Westchester property taxes on the modest Tudor style shack, the roof, furnace, the windows and then there's the swim club $1500/yr. Golf. Three cars, premiums, vacations. Face it, you're problems are just collateral damage--now shush up and go wave that flag.
4
This article makes your blood boil on the incompetence of the US government to put a leash on miscreants CEOs like Pearson and Shrikle. If I was dependent on some of these outrageously price gouged drugs, and my life was to cut short because it is out my ability to pay for it, I will make sure the miscreants like the ones in the article face the same fate like me-- I make sure we take the same trip together. May be they can share they ill gotten wealth there with everyone.
2
While valeant deserves shunning and scorn, it is important to note that this behavior is only possible because of subversion of free market capitalism by the government-healthcare complex. For example:
1. Cheap versions of drugs valeant sells are easily available abroad but FDA prohibits import.
2. Formularies and pharmacies in US can easily make and package these off patent drugs, but again FDA prohibits that.
3. In no business other than Healthcare are there exemptions from monopoly and price fixing laws. Allow people to import and sell valeant drugs from eurooe/canada/Mexico and valeant will put of business in one day.
4. Ignoring 1-3 Democrats and liberal media will use valeants greed to push more regulations, whereas it is the government-industry crafted regulation which is behind this crisis.
1. Cheap versions of drugs valeant sells are easily available abroad but FDA prohibits import.
2. Formularies and pharmacies in US can easily make and package these off patent drugs, but again FDA prohibits that.
3. In no business other than Healthcare are there exemptions from monopoly and price fixing laws. Allow people to import and sell valeant drugs from eurooe/canada/Mexico and valeant will put of business in one day.
4. Ignoring 1-3 Democrats and liberal media will use valeants greed to push more regulations, whereas it is the government-industry crafted regulation which is behind this crisis.
5
Technically it is illegal to import drugs, but if they are for personal use and no more than a 90 day supply, the law is not enforced. Bernie Sanders took a bus load of Vermont women to Canada to buy a cancer drug at 10% of the U.S price. I buy drugs online from a licensed Canadian pharmacy and according to the Canadian International Pharmacy Association (CIPA), millions of Americans do the same. (Go to their website for a list of approved online pharmacies.
Grandma, living on Social Security, can purchase Glumetza for her diabetes for $157 online from a licensed Canadian pharmacy. The manufacturer is Valeant. Will she be arrested for illegally importing an FDA approved drug from the same manufacturer as the U.S. source? US. price $10,020.
https://www.pharmacyrxworld.com/buy-Glumetza.html
Grandma, living on Social Security, can purchase Glumetza for her diabetes for $157 online from a licensed Canadian pharmacy. The manufacturer is Valeant. Will she be arrested for illegally importing an FDA approved drug from the same manufacturer as the U.S. source? US. price $10,020.
https://www.pharmacyrxworld.com/buy-Glumetza.html
5
Clearly this is spam. The law, I assure you, is enforced. If you doubt me, spend some money breaking the law and see what happens, it is not pleasant. U.S. Customs and Border Protection states concerning internet purchases: the entry of prescription medicines is restricted and subject to the approval of the U.S. Food and Drug Administration (FDA). Depending on the FDA review of the medicine, it may be released to the addressee or seized. There are, however, provisions allowing passengers to hand carry prescription drugs into the United States if they enter through a land border with Canada or Mexico."
2
This isn't earning money, it's just taking it - all with the blessing of an immoral Repubican Congress who shout Pro-Life! at every opportunity but are more than happy if women 70 years of age or so have to go back to work to make sure their husbands don't die. The heads of Valeant are not leaders, they're monsters.
298
Valeant owners must be rewarded because of ""benefits and the value they bring to patients, physicians, payers and society.”
By this logic, they could buy all bakeries, textile plants, grocery stores, roads, etc. and own what civilizations have developed over a thousand of years!
Own "essential" - specially when the government pays for them to support their "addiction" to limitless wealth.
This is what "money" in politics does - beginning with the presidency and congress and eventually the Supreme Court! The Federal Reserve is printing free money to support and further these entrench interests which are completely removed from the lives of "everyday" Americans - in order to gain and enhance their own personal interests. And the "media" distract us with amusements!
These so-called "new" drug companies have replaced genuine science and research based medicine that has existed for more than 200 years (before there was America). Wall Street act like they have invented cures for everything!
During the last election, Obama recycling Elizabeth Warren said, "you didn't build that" and was ridiculed by Republicans. For any future president, to support the idea that these financial wizard with nearly "free money" from the Federal reserve have "built" the world they can now financially loot and pillage at the expense of real working people and even human life and claim they "save lives" is beyond belief - a cruel joke, unworthy of America and "WE the people"!
By this logic, they could buy all bakeries, textile plants, grocery stores, roads, etc. and own what civilizations have developed over a thousand of years!
Own "essential" - specially when the government pays for them to support their "addiction" to limitless wealth.
This is what "money" in politics does - beginning with the presidency and congress and eventually the Supreme Court! The Federal Reserve is printing free money to support and further these entrench interests which are completely removed from the lives of "everyday" Americans - in order to gain and enhance their own personal interests. And the "media" distract us with amusements!
These so-called "new" drug companies have replaced genuine science and research based medicine that has existed for more than 200 years (before there was America). Wall Street act like they have invented cures for everything!
During the last election, Obama recycling Elizabeth Warren said, "you didn't build that" and was ridiculed by Republicans. For any future president, to support the idea that these financial wizard with nearly "free money" from the Federal reserve have "built" the world they can now financially loot and pillage at the expense of real working people and even human life and claim they "save lives" is beyond belief - a cruel joke, unworthy of America and "WE the people"!
3
"But Mr. Pearson, a former McKinsey & Company consultant, has said he has a duty to shareholders to wring the maximum profit out of each drug."
That sums up perfectly what is wrong with American health care. It is viewed and managed as a profit center, not a need, and certainly not a right. Until we change that mindset, until health care companies feel more of a duty to their patients than to their shareholders, many Americans will continue to be priced out of the medical treatments that could improve their lives -- or even save them. And that's sick.
That sums up perfectly what is wrong with American health care. It is viewed and managed as a profit center, not a need, and certainly not a right. Until we change that mindset, until health care companies feel more of a duty to their patients than to their shareholders, many Americans will continue to be priced out of the medical treatments that could improve their lives -- or even save them. And that's sick.
231
I am afraid the corporate prisons are another example of a profit center, whereby judges somehow think they need to sentence everyone to decades, to multiple consecutive sentences for life, especially the non-violent drug users, not to protect society, but rather to protect private prison profits. And then I hear that until recently, prison factories were working the inmates at enormous profit, selling the products -- groceries -- to Whole Foods. To me, that smells of neo-slavery.
Our investor class has established laws dictating all public companies obtain the most profit this quarter that they can. Stockholders can sue should any company opt for long term planning and long term investment if it lowers today's dividend. So it is now illegal for these drug owners to not increase the prices.
The Big Pharma folk worry about these new holding companies and hedge fund hobbies as they will jump prices so high the public may demand some restrictions. So now the "Good Cops" of Big Pharma are trying to control the "Bad Cops" raising prices too fast.
Anyone worrying about money going to "entitlements" should be very worried to see Medicare, who is restricted from negotiating prices, having to pour millions into these drug makers pockets due to increased costs.
The politicians Big Pharma owns now have to decide to cut Medicare, or go against their funding sources, or face a public....which is more interested in Kardashian butts than their own self interest.
The Big Pharma folk worry about these new holding companies and hedge fund hobbies as they will jump prices so high the public may demand some restrictions. So now the "Good Cops" of Big Pharma are trying to control the "Bad Cops" raising prices too fast.
Anyone worrying about money going to "entitlements" should be very worried to see Medicare, who is restricted from negotiating prices, having to pour millions into these drug makers pockets due to increased costs.
The politicians Big Pharma owns now have to decide to cut Medicare, or go against their funding sources, or face a public....which is more interested in Kardashian butts than their own self interest.
Simply allow unfettered imports of the drugs in question from abroad. As for the assertion that it is the CEO's duty to raise prices as much as possible: nonsense. In a monopoly situation anti trust legislation can and should place limits upon the monopolist's abuse of his position.
7
Where are the consumer lawyers? These are unconscionable, unenforceable contracts.
3
And there are 15 Presidential candidates out there who, on Day Two of his or her term in the Oval Office, would lower the taxes on the corporate profits of Valeant and Turing, and on the personal incomes of Pearson and Shkreli for good measure.
The reason for the delay is the schedule for Day One is already booked solid for the elimination of the Affordable Care Act.
The reason for the delay is the schedule for Day One is already booked solid for the elimination of the Affordable Care Act.
21
If Congress had to live by the same rules as the rest of us, the changes in our system that seem to take forever, would happen tomorrow if not today.
2
I find it rather ironic that the U.S. government is now on it high horse about dealing with outrageous drug prices BUT, with a drug company with its H.O. in Canada. Funny, after all these years they have yet to think it has been an issue with U.S. based companies such as Pfizer and Eli Lilly, just to name a few.
2
A thoughtful observer might point out that as a company trading on the New York Stock Exchange (NYSE: VRX), Valeant Pharmaceuticals International Inc. is required hold annual meetings which all shareholders are entitled to attend.
Those of us who are concerned about Valeant's pricing practices can purchase a few shares of Valeant common stock. After becoming a shareholder, we are entitled to attend Valeant's annual meeting and ask any questions, raise any issues, or address any concerns we might wish. In such a public forum, company directors and management would be obliged to respond.
Further, if enough shareholders express their outrage over Valeant's price gouging, the company's management might accommodate shareholder wishes for more reasonable pricing policies.
Those of us who are concerned about Valeant's pricing practices can purchase a few shares of Valeant common stock. After becoming a shareholder, we are entitled to attend Valeant's annual meeting and ask any questions, raise any issues, or address any concerns we might wish. In such a public forum, company directors and management would be obliged to respond.
Further, if enough shareholders express their outrage over Valeant's price gouging, the company's management might accommodate shareholder wishes for more reasonable pricing policies.
6
This is just one more way that corporations (and their owners) rob from the poor to line their own pockets -- the reverse Robin Hoods, if you will.
5
The fact that this goes on unfettered scares me to my bones. I'm not affected by it--at the moment. But no one, not one of us, knows when we might fall victim to this predatory practice. This kind of thing can make a family lose everything. For what? So shareholders can profit? Reprehensible.
15
The CEO is right about his fiduciary responsibility to the shareholders.
That being said, it's hard to believe that the CEO and the board didn't discuss the fact that doing so would seriously threaten to ruin finances and potentially take lives. I can't imagine a group of people sitting around and saying "we need to make more money, even if it kills people" and thinking it was worth it.
What really makes it unpleasant isn't just the naked profits over people, but that they're leveraging a monopoly position to do this. The FDA should have a rule that blocks price increases for monopoly-supplier drugs for life-threatening illnesses when they exceed the cost of manufacturing increases.
They should also consider streamlining the approval process for out of patent generics to eliminate this sad pricing opportunity. I also wonder if maybe the NIH or some similar entity couldn't setup some kind of manufacturer of last resort for low-profit, out of patent medications for rare diseases. (Even snake anti-venom would benefit -- coral snake anti-venom hasn't been made in so long, the FDA has extended existing stock expiration dates twice -- my uncle killed one in his back yard in Florida just last week).
That being said, it's hard to believe that the CEO and the board didn't discuss the fact that doing so would seriously threaten to ruin finances and potentially take lives. I can't imagine a group of people sitting around and saying "we need to make more money, even if it kills people" and thinking it was worth it.
What really makes it unpleasant isn't just the naked profits over people, but that they're leveraging a monopoly position to do this. The FDA should have a rule that blocks price increases for monopoly-supplier drugs for life-threatening illnesses when they exceed the cost of manufacturing increases.
They should also consider streamlining the approval process for out of patent generics to eliminate this sad pricing opportunity. I also wonder if maybe the NIH or some similar entity couldn't setup some kind of manufacturer of last resort for low-profit, out of patent medications for rare diseases. (Even snake anti-venom would benefit -- coral snake anti-venom hasn't been made in so long, the FDA has extended existing stock expiration dates twice -- my uncle killed one in his back yard in Florida just last week).
6
Since CMS is paying for most of the medications used by our population, why doesn't the government buy the rights to the ones that are most commonly used and are off patent and contract out their manufacture to a contract pharmaceutical company for sale at a reasonable price?
4
You can rationalize anything of course, as companies like Valeant and its CEO do: we've got to correct mispricing and wring out every ounce of profit for our shareholders. Yea right. Gouging taxpayers and creating evident hardship for many citizens, if not death in extreme cases, is too bad.
Today, almost no one - especially corporate greed masters and their lackeys the repubs - steps back and asks: even though we can do something and make money, is it the right thing to do to the American people.
Nor do they ask or consider: if we see something unethical, let's change the laws or regulations and correct what is wrong. Making such changes voluntarily is of course unheard of.
No, no one in corporate America does anything like that, nor do the members of the conservative party.
We the people have to vote the unethical frauds out of office and somehow, if possible, stop buying any products made by Valeant and other parasites like them. If we reduce their profits, then they wake up. Money is the only thing they understand, not what is right or ethical. The system is insane, vote accordingly.
Today, almost no one - especially corporate greed masters and their lackeys the repubs - steps back and asks: even though we can do something and make money, is it the right thing to do to the American people.
Nor do they ask or consider: if we see something unethical, let's change the laws or regulations and correct what is wrong. Making such changes voluntarily is of course unheard of.
No, no one in corporate America does anything like that, nor do the members of the conservative party.
We the people have to vote the unethical frauds out of office and somehow, if possible, stop buying any products made by Valeant and other parasites like them. If we reduce their profits, then they wake up. Money is the only thing they understand, not what is right or ethical. The system is insane, vote accordingly.
2
Only in America.
3
Note to all politicians. I will be voting in the next elections based on your statements and actions on this one issue. This issue is a moral litmus test to whether you are for we the people or corrupt corporations. And just remember that diseases don't recognize the difference between conservatives and liberals.
12
The only solution is one the French pioneered in the 18th century. The catch is it needs to be repeated every fifty years or so, we seem to have forgotten that.
We are due. Who's first?
We are due. Who's first?
5
Since the U.S. courts gave corporations "personality" it seems fitting that Valeant be restrained from its drug pricing actions until the matter can be resolved.
There is no argument that can defend this company in the circumstances. The officers and directors knowingly planned to raise prices on vital drugs they acquired but did not develop. The price increases were devised and planned to make excess (extra-ordinary) profits that the pharmaceutical industry, already the highest profitable industry, generally earns. The officers and directors of Valeant knowingly compromised the lives of patients dependent on the company's drugs. The reason we have "regulations" is to mitigate these nefarious actions by people who value quick and dirty wealth accumulation over other peoples' lives.
The principles in play are two-fold. Companies do have personality and rights to profit in a free market system. Companies, like people, are subject to regulation by the courts and government laws.
Whenever a person breaches a regulation - civil or criminal, it answers to the appropriate court of law. A company in a vital industry that engages in actions that compromise the lives and immediate and present danger to its customers, the matter needs to be addressed by the court to restrain the company from such activity.
Is anyone surprised that Mr. Pearson is a STEM graduate and a former "management consultant"? Perhaps if he studied Aristotle he may have discovered ethics.
There is no argument that can defend this company in the circumstances. The officers and directors knowingly planned to raise prices on vital drugs they acquired but did not develop. The price increases were devised and planned to make excess (extra-ordinary) profits that the pharmaceutical industry, already the highest profitable industry, generally earns. The officers and directors of Valeant knowingly compromised the lives of patients dependent on the company's drugs. The reason we have "regulations" is to mitigate these nefarious actions by people who value quick and dirty wealth accumulation over other peoples' lives.
The principles in play are two-fold. Companies do have personality and rights to profit in a free market system. Companies, like people, are subject to regulation by the courts and government laws.
Whenever a person breaches a regulation - civil or criminal, it answers to the appropriate court of law. A company in a vital industry that engages in actions that compromise the lives and immediate and present danger to its customers, the matter needs to be addressed by the court to restrain the company from such activity.
Is anyone surprised that Mr. Pearson is a STEM graduate and a former "management consultant"? Perhaps if he studied Aristotle he may have discovered ethics.
4
Vakeant is a parasite.
Valeant's managers and shareholders deserve our contempt.
Valeant's managers and shareholders deserve our contempt.
16
Greed is good, Pearson says. And it's legal.
It's time for corporate scum like Valeant and Turing to either find their ethical compass, or be driven from the face of the pharmaceutical industry by their peers. We did not wed ourselves to these moral deadbeats with pledges of "'til death do we part."
Regulators? I do believe that with the current predominance of an out of control "pro-business" Congress, we won't see anything useful to combat these obscenities. Blood money gets spread too far.
It's time for corporate scum like Valeant and Turing to either find their ethical compass, or be driven from the face of the pharmaceutical industry by their peers. We did not wed ourselves to these moral deadbeats with pledges of "'til death do we part."
Regulators? I do believe that with the current predominance of an out of control "pro-business" Congress, we won't see anything useful to combat these obscenities. Blood money gets spread too far.
12
In a just society illness is not a source of rapacious profits.
Not that that matters to any who do.
Not that that matters to any who do.
10
Valeant underwent a major change in its executives and with it its corporate philosophy and behavior. It has become an outlier among pharmaceutical companies in terms of turning its back on research and development and its pricing of old medications with limited application. In some cases their overpriced products compete with many alternatives. It appears the Valeant business model is not sustainable, and should make the shareholders Mr. Pearson alludes to fiscally uneasy, if not ethically troubled.
3
Another example of businesses that make obscene money by doing nothing constructive and leeching off those that do. They join the financial institutions that gamble with other people's money and the corporate raiders who buy and dismantle companies and fire their employees. Greed is good.
5
Valeant/Mr. Pearson's pricing strategy adds irrefutable evidence to the need for government controls and even permit online drug purchases from other countries. Or allow the consumer to purchase online drugs from other countries. True laissez faire.
Unlike pharmaceutical leaders like Glaxo and Merck, Valeant develops very little and has a minute pipeline. They only focus is profit and making shareholder's happy. The fictional Gordon Gekko once said "Greed is good." Even his greed did not put people's lives at stake.
Unlike pharmaceutical leaders like Glaxo and Merck, Valeant develops very little and has a minute pipeline. They only focus is profit and making shareholder's happy. The fictional Gordon Gekko once said "Greed is good." Even his greed did not put people's lives at stake.
123
A bit ironic that we can't buy drugs from other countries but this company can incorporate in another country to avoid taxes in the USA and still sell drugs here.
6
And THIS is why there is a Line at every Border crossing - North & South every day with desperate Americans willing to lie about their visits. And the Border Guards who are there to "Protect" Citizens by Confiscating Old Folks Desperately needed Medicines.
I teach corporate law, and when my even most strongly pro-business students discuss this sort of behavior in class, they are horrified. For a long time I sided with the anti-regulation crowd, on the grounds that you should not need the government to create what is disparagingly known as red tape because smart business people are too rational to do something that would ultimately lead to corporate suicide. Their own self-interest would lead them to restrain themselves from engaging in conduct that, while profitable in the short-term, might ultimately hurt the business. The GFC put the lie to the notion that people can self-regulate and do not need external rules. Too many business people, at least in the context of how company are currently managed, do not have the self-control to control their greed. (Or, put another way, under current governance systems, there is too much incentive to make money now, despite the obvious perils of unethical if not illegal corporate misconduct, to just say no.) Here, clearly Congress must act to stop this sort of price gouging. (And long-term, we need legal rules that make clear that the duty to benefit shareholders cannot justify this sort of behavior.) And when companies like Valeant get hurt as a result (since their entire business model is based on this behavior), they will have only themselves to blame.
19
It took this for you to figure out that rules are necessary?
16
Not exactly. In my attempt to be pithy, I used shorthand to refer to what is in fact an extremely nuanced debate. Obviously nobody thinks that no rules are necessary, even the "anti-regulation" people. The question comes down to what exactly should be regulated and at what level of specificity versus generality. Thanks to the word limit, I can't exactly post a law review-length analysis of the issue. But to characterize the anti-regulatory side as saying that "no rules are necessary" is a gross oversimplification of what those people believe.
Everyone has competing duties in life. The duty to make money for shareholders doesn't supersede the universal duty not to kill, even indirectly.
"...Mr. Pearson, a former McKinsey & Company consultant, has been blunt about saying he has a duty to shareholders to wring the maximum profit out of each drug." Anyone who doesn't understand this statement doesn't understand capitalism.
Shareholders demand maximum profits and maximum rates of growth from corporate leaders. What is left out of the above is the fact that CEO's demand them, too. For CEO's main source of compensation is not their salaries but stock they own in the company and their stock options, entitling them to more shares of stock. This aligns CEO interests with shareholders and not with their consumers nor the general public. Reality bites.
Shareholders demand maximum profits and maximum rates of growth from corporate leaders. What is left out of the above is the fact that CEO's demand them, too. For CEO's main source of compensation is not their salaries but stock they own in the company and their stock options, entitling them to more shares of stock. This aligns CEO interests with shareholders and not with their consumers nor the general public. Reality bites.
13
To understand what is happening all you need to do is pay attention to the following line from this clown:
“prices its treatments based on a range of factors, including clinical benefits and the value they bring to patients, physicians, payers and society.”
He is essentially saying "how much is your life worth?".
I am all about rewarding the inventor for something that carried risk to develop and bring to the market, but this is reprehensible and not at all the kind of society I would like to live in - one were finding drugs that are low in price and raising them astronomically with the following mind set:
“products are sort of mispriced and there’s an opportunity, we will act appropriately in terms of doing what I assume our shareholders would like us to do,”
This isn't some yard sale arbitrage where mis-priced items can be resold for greater monetary value - this is about drugs that affect peoples lives and in many cases keep them alive.
Anyone who rails against "regulation" should really pay attention. What this individual is doing is acceptable by the "invisible hand of the markets" and the only way to stop this atrocious behavior is through gov't regulation to keep us safe from these predators.
“prices its treatments based on a range of factors, including clinical benefits and the value they bring to patients, physicians, payers and society.”
He is essentially saying "how much is your life worth?".
I am all about rewarding the inventor for something that carried risk to develop and bring to the market, but this is reprehensible and not at all the kind of society I would like to live in - one were finding drugs that are low in price and raising them astronomically with the following mind set:
“products are sort of mispriced and there’s an opportunity, we will act appropriately in terms of doing what I assume our shareholders would like us to do,”
This isn't some yard sale arbitrage where mis-priced items can be resold for greater monetary value - this is about drugs that affect peoples lives and in many cases keep them alive.
Anyone who rails against "regulation" should really pay attention. What this individual is doing is acceptable by the "invisible hand of the markets" and the only way to stop this atrocious behavior is through gov't regulation to keep us safe from these predators.
259
In that case, penicillin's price should be raised big time. Antibiotics have made it possible for people to live long enough to need expensive cancer drugs. Whatever happened to ethics? I'm afraid drug corporations have sold their soul and investors are co-conspirators. It's time for government regulation of these medicines.
Maybe it is government regulation that is creating this problem. If we could buy these drugs from online pharmacies in other countries and medicare could negotiate drug prices (both forbidden by law) maybe we wouldn't have this issue. Big business pays good money to assure US law makers pass laws to benefit and protect big business.
Until we get money out of our politicians, this is what we get, government to the highest bidder.
Government funded elections, 120 day campaign period, five year restriction on government to industry jobs and illuminating professional lobbying may fix all this.
Until we get money out of our politicians, this is what we get, government to the highest bidder.
Government funded elections, 120 day campaign period, five year restriction on government to industry jobs and illuminating professional lobbying may fix all this.
If we follow this market based argument of unfettered capitalism to its logical end, then hospitals should jack up their prices during epidemics and disasters, supply and demand, you know - Uber does it. I hope when these guys get sick their doctors use the same principles and ask them "What is your life worth?" But given their morals, that is unfortunately nothing.
A simple solution: new legislation immediately terminating all intellectual property rights, including, but not limited to, patents of any company that, more than three years after the release of a drug, raises the price of the medication by more than the previous year's CPI...and, if the product is licensed rather than owned by the company raising prices, apply the same remedy to the licensor of the product.
6
great idea. There's just that pesky matter of the Constitution...
1
Great idea. Now...what incentive is there for anyone to develop any new drugs? Say, for cancer, or Alzheimer's?
Change the laws and regulations. The FDA is responsible for passing grace on this business model because the use of orphan drug status for simple compounds like Turing's is truly ridiculous. A research lab can buy 1 gram of pyrimethamine (Daraprim) from Santa Santa Cruz Biotechnology for $76. See http://www.scbt.com/datasheet-208190-pyrimethamine.html). One gram would make 40 of the 25 mg capsules or tablets Turing is selling with a "street" value of $30,000, at Turing's price.
My father was a pharmacist, entering business after WWII. In our pharmacy we had chemicals/compounds from companies such as Merck in NF (National Formulary) and USP (United States Pharmacopeia) grades, approved for human use. A doctor could (?can) write a prescription for pyrimethamine USP and even ask for it to be weighed and put into gelatin capsules, if the pharmacy was equipped to weigh 25 mg! That is easy but slow with today's electronic balances. The pyrimethamine being sold by Santa Cruz is most likely as pure as Turing's. And Santa Cruz is not losing money. There is a huge overpricing of many items used in medical research labs, because grants from NIH pay.
My father was a pharmacist, entering business after WWII. In our pharmacy we had chemicals/compounds from companies such as Merck in NF (National Formulary) and USP (United States Pharmacopeia) grades, approved for human use. A doctor could (?can) write a prescription for pyrimethamine USP and even ask for it to be weighed and put into gelatin capsules, if the pharmacy was equipped to weigh 25 mg! That is easy but slow with today's electronic balances. The pyrimethamine being sold by Santa Cruz is most likely as pure as Turing's. And Santa Cruz is not losing money. There is a huge overpricing of many items used in medical research labs, because grants from NIH pay.
6
There is really very little I need to know for the next election. The main item is which one is the incumbent. The next is which of the others is likely to be least crooked.
3
There ought to be a law. This is disgusting, greedy behavior and something has to be done. There are so many ways to make money in this country, it should not be done this way.
For once, perhaps congress can do something worthwhile and stop this gouging.
For once, perhaps congress can do something worthwhile and stop this gouging.
5
"Jacking up prices of old drugs, “with no R&D risk-taking, is just not right,” Bruce Booth, a prominent life sciences venture capitalist, tweeted on Tuesday, adding that the practice “hurts the industry & innovators.”"
Nice to see big pharma waking up to the fact that a few greedy apples are spoiling the whole bushel. This is what happens when industry has created the "expectations" monster out of investors, who no longer expect average rates of return but demand huge increases because of the fact that the industry is known for price gouging.
If there is any time for patient outrage, this is the year. I think people are getting pretty fed up by practices that in any other industry wouldn't fly because of competition. But drug makers have a pretty free rein when it comes to older products--they don't have patent protection but nor do they have protection from unfettered price increases with no labor involved except changing the sign outside company.
The other thing that's pretty raw is the blithe attitude of these non-industry guys saying, in effect, the insurance industry will absorb it. I have a dirty little secret for everyone: prices never get absorbed, they just passed on to consumers in one shape or another. Premiums will rise, and taxes will be raised when Medicare budgets are blown by a few greedy hedge fund investors.
Get...the...profit...out...of...healthcare.
Nice to see big pharma waking up to the fact that a few greedy apples are spoiling the whole bushel. This is what happens when industry has created the "expectations" monster out of investors, who no longer expect average rates of return but demand huge increases because of the fact that the industry is known for price gouging.
If there is any time for patient outrage, this is the year. I think people are getting pretty fed up by practices that in any other industry wouldn't fly because of competition. But drug makers have a pretty free rein when it comes to older products--they don't have patent protection but nor do they have protection from unfettered price increases with no labor involved except changing the sign outside company.
The other thing that's pretty raw is the blithe attitude of these non-industry guys saying, in effect, the insurance industry will absorb it. I have a dirty little secret for everyone: prices never get absorbed, they just passed on to consumers in one shape or another. Premiums will rise, and taxes will be raised when Medicare budgets are blown by a few greedy hedge fund investors.
Get...the...profit...out...of...healthcare.
340
Big pharma is not waking up to the greed, they have been very greedy themselves. They are afraid that this incredible level of greed will shine the light on them. Maybe a good analogy is Don Corleone being smart enough to pass up on the big profits from drugs, so as not to lose his already very profitable business.
2
"Nice to see big pharma waking up to the fact that a few greedy apples are spoiling the whole bushel."
"A few greedy apples...?" Perhaps you should read the article more carefully. The huge price increases of the type Valeant is employing to gouge patients are not as great a threat to our health care system as are the 8%, 10%, and 15% annual increases by other pharmaceutical companies on a much wider range of more commonly prescribed drugs.
"A few greedy apples...?" Perhaps you should read the article more carefully. The huge price increases of the type Valeant is employing to gouge patients are not as great a threat to our health care system as are the 8%, 10%, and 15% annual increases by other pharmaceutical companies on a much wider range of more commonly prescribed drugs.
1
Get the profit out of health care.
Cut the wages and benefits of all health care workers. That will fix them.
Control prices. Give providers and their suppliers strong financial incentives to drop unprofitable services and products. That will fix patients.
Give price controls to Obama and Clinton appointees. Like their peers in the IRS, EPS, NLRB, the regulators will take care of the biggest campaign contributors, and consumers and voters will suffer as they always do when Big Government screws up markets. See Medicaid, Medicare, etc.
Cut the wages and benefits of all health care workers. That will fix them.
Control prices. Give providers and their suppliers strong financial incentives to drop unprofitable services and products. That will fix patients.
Give price controls to Obama and Clinton appointees. Like their peers in the IRS, EPS, NLRB, the regulators will take care of the biggest campaign contributors, and consumers and voters will suffer as they always do when Big Government screws up markets. See Medicaid, Medicare, etc.
There are no regulations that are not the result of some abusive practice.
2
I guess I don't understand. If there is a generic equivalent of Cuprimine being sold at $1 a tablet and a generic equivalent of Glumetza might become available in February, isn't the system taking care of the price problem?
Also, doesn't Bausch & Lomb sell products like contact lenses and contact lens solution that don't come with any Research & Development? That would explain why their research and development is so low as a percent of sales.
You mentioned the stock has lost a quarter of its value since Sept 18th. I hope the NYT wasn't pushed in this direction by short-sellers of the stock, who are profiting from sensationalist reporting.
Also, doesn't Bausch & Lomb sell products like contact lenses and contact lens solution that don't come with any Research & Development? That would explain why their research and development is so low as a percent of sales.
You mentioned the stock has lost a quarter of its value since Sept 18th. I hope the NYT wasn't pushed in this direction by short-sellers of the stock, who are profiting from sensationalist reporting.
1
The generic of Cuprimine is foreign, cannot be imported, therefore Valeant has a monopoly on the drug.
6
Because, AK, the generic equivalent of Cuprimine is being sold by foreign pharmacies and it is illegal for people in the US to buy from foreign pharmacies.
Why can't the government make it a criminal penalty when companies price products and services which, after insurance companies pay a portion but taxpayers are made to pay for the difference?
The same should apply to those companies which underpay their employees, forcing them to apply for food subsidies.
For the record- I'm a business owner with employees.
The same should apply to those companies which underpay their employees, forcing them to apply for food subsidies.
For the record- I'm a business owner with employees.
2
Checki out what the generic drugs now cost. The generics of some of my medications are now double or more what I paid for the brand name drugs a year ago,
1
What's the big deal? This is capitalism at its best, and I mean "best".
2
dear will w,
it is only a "big deal" when your monthly costs for a needed drug goes from $366 monthly to $1,800.
but then again, it may not be a "big deal" to you, just to those retired american workers on fixed incomes. then "capitalism at it's best" seems profoundly wrong.
it is only a "big deal" when your monthly costs for a needed drug goes from $366 monthly to $1,800.
but then again, it may not be a "big deal" to you, just to those retired american workers on fixed incomes. then "capitalism at it's best" seems profoundly wrong.
I am a medical oncologist (cancer specialist) practicing in MA: While I don't treat toxoplasmosis (the infectious disease affected by Turing's stupednous price hike) or Wilson's disease (affected by Valeant's price hike reported in this article), I must say that, day-in and day-out, my cancer patients have often dropped valid/recommended treatment options because of exorbitant copays NOT covered by any of the advertised pharma-sponsored patient support programs. While the media is busy with other issues, there are real live human beings who are not treated in our country because they cannot afford the copays of whatever standard-of-care treatment is offered to them... Please, help me stand up for these patients, It is not their fault that they are suffering from cancer. It would be our fault as society to let them down.
578
You are unusual in your statements. Many doctors don't know or don't care if their patients cannot afford the treatment they recommend. Thank you for caring. Now, if only enough like minded physicians could get together and start a campaign for patients and good health care rather than wealth care, we might see some changes.
15
Amen. Time for those of us who are mortal to leave the country. Much better health care in many other countries, and you don't have to choose between groceries or a medication.
3
Right, Sage, because the government chooses the medications for you in other countries and, no, they are not the same as top of the line care here in the US. In any case, these rare diseases have an incredibly low impact on healthcare costs because the patients are so rare. And that rarity does increase the cost to study these diseases and look for better treatment options. Now, raise the cost of cholesterol drugs 5%...that would have a meaningful impact of healthcare costs.
This is classic rent seeking behavior, what VALUE does this add to our economy? None, zilch, nada. That's why this type of behavior infuriates me.
What would Jonas Salk think of us now?
What would Jonas Salk think of us now?
29
Big Pharma is the world's greatest welfare queen. The nonsense that these outrageous prices are necessary to fund R&D has been known for some time. The Republicans in congress have sold us out. One way to control this price gouging is to allow government funded health programs to negotiate prices in bulk, establish an efficacy list for drugs, and perhaps provide stimuli for these companies to produce needed drugs such as more effective anti-biotics instead of drugs created to maximize their profit. As long as these pirates have the government teat to suck on nothing will change.
39
Truth be told, pharmaceuticals spend more on marketing than R&D. The American people are subsidizing the rest of the world.
32
But companies like Valeant aren't even claiming that they do any R&D. Their greed is quite naked.
1
The drugs cited in this article can be purchased online from licensed Canadian pharmacies at a fraction of the U.S. price. For example, Glumetza costs $10,020 here but $157 in Canada for the same prescription and the same manufacturer--Valeant. https://www.pharmacyrxworld.com/buy-Glumetza.htm
Technically it is illegal to import drugs, but the law is not enforced if the prescription is for no more than a 90 day supply and for personal use. I buy drugs this way and according to the Canadian International Pharamcy Association (CIPA), millions of other Americans do so as well. Go to their website for a list of approved online pharmacies.
Technically it is illegal to import drugs, but the law is not enforced if the prescription is for no more than a 90 day supply and for personal use. I buy drugs this way and according to the Canadian International Pharamcy Association (CIPA), millions of other Americans do so as well. Go to their website for a list of approved online pharmacies.
28
The fact that one can, with sufficient savvy and a willingness to engage in "technically illegal" activities, save huge amounts of money says nothing whatsoever good about this country or about a government that puts Americans in to that sort of position. No one--absolutely no one--should have to resort to "technically illegal" activities to obtain needed medications. Further, I don't know about you but I know many older people who wouldn't have the vaguest idea of how to go about finding these alternatives and who lack computer access even if they did have some idea. Pat yourself on the back if you wish for being so smart--it doesn't lessen the outrage of what is being done one iota.
1
This is why we all need price cintroll regulation when it comes to pharma, oil, gasoline and all utilities.
12
One of the reasons we elect and pay for a government is to pass laws that prevent this type of price gouging. Congress, stop investigating Planned Parenthood (again) and do the job you were elected and paid to do.
476
I wish that were true but after decades of "the government is the problem" and "far and balanced" news , far too many Americans elect and pay for a government they wish to immolate itself.
And now, to some degree, you are seeing their success story.
And now, to some degree, you are seeing their success story.
1
Unfortunately our fine elected officials attacking planned parenthood are also the same clowns who have tried to put an end to Obamacare to many times to count, believing that the free market is the best way to deliver health care.
1
Our 'effective' Congress for the 1% is bankrolled by the companies they are supposed to regulate. It just aint gonna happen. Money politics means Americans lose. We see this pitiful scenario daily.
1
Possible responses to drug company greed:
1) End Congress' legal prohibition on having the Federal government negotiate drug prices for Medicare, one of the biggest consumers.
2) Go back to the age of strict federal price regulation and price controls, like we had decades ago for trucking, airlines and natural gas.
3) Legally prohibit drug companies with patented drug from paying would-be competitors about to manufacture the drug when it goes off-patent from doing so.
4) Have the federal gov't. get into the business of mass manufacturing off-patent drugs. That would serve as a de facto price control on commercial competitors.
5) A great deal of big pharma drug development is based on publicly financed research. Attach legal price limit strings to companies who use public data.
6) End the current legal prohibition on importing drugs from other countries. Allowing international competition, subject to strict quality and safety standards, is fully consistent with free-market competition; the current prohibition is not.
7) End the big pharma practice of tweaking a few molecules to make a marginally better drug, thus extending patent protection, by raising the standard for a new and original invention.
8) Shorten the current 17-year patent protection period.
9) Have the Federal govt. actively get into the drug development business for critical drugs. With outrageous commercial prices, it is no longer true that government costs more than private.
10) Vote for Bernie Sanders.
1) End Congress' legal prohibition on having the Federal government negotiate drug prices for Medicare, one of the biggest consumers.
2) Go back to the age of strict federal price regulation and price controls, like we had decades ago for trucking, airlines and natural gas.
3) Legally prohibit drug companies with patented drug from paying would-be competitors about to manufacture the drug when it goes off-patent from doing so.
4) Have the federal gov't. get into the business of mass manufacturing off-patent drugs. That would serve as a de facto price control on commercial competitors.
5) A great deal of big pharma drug development is based on publicly financed research. Attach legal price limit strings to companies who use public data.
6) End the current legal prohibition on importing drugs from other countries. Allowing international competition, subject to strict quality and safety standards, is fully consistent with free-market competition; the current prohibition is not.
7) End the big pharma practice of tweaking a few molecules to make a marginally better drug, thus extending patent protection, by raising the standard for a new and original invention.
8) Shorten the current 17-year patent protection period.
9) Have the Federal govt. actively get into the drug development business for critical drugs. With outrageous commercial prices, it is no longer true that government costs more than private.
10) Vote for Bernie Sanders.
25
Remember the Republican mantras, "the private sector can always do it better" and "we need to reduce the size of government.
Unregulated capitalism = death panels.
Unregulated capitalism = death panels.
50
This article presents a fair criticism of this aspect of the capitalist system. But it is illogical to draw from this problem the conclusion that the private/capitalist system is inferior to one where the function of pharma development would be handled by the government.
Are these drugs too expensive? Yes, but as others in the comments here have pointed out, the capitalist system already provides alternatives in the form of cheap generics. Moreover, expensive as these drugs are, without the potential for enormous profits, and left to the government to develop, most of these drugs would not exist.
Are these drugs too expensive? Yes, but as others in the comments here have pointed out, the capitalist system already provides alternatives in the form of cheap generics. Moreover, expensive as these drugs are, without the potential for enormous profits, and left to the government to develop, most of these drugs would not exist.
5
And if there are no "cheap generics?"
10
Government is not to 'handle pharma development', but to serve the people.
There is no threat to capitalist enterprise which does likewise.
Serving the people, however, also includes jailing thieves, and seizing their ill-gotten gains.
There is no threat to capitalist enterprise which does likewise.
Serving the people, however, also includes jailing thieves, and seizing their ill-gotten gains.
4
I have always bought the argument that high drug prices are the result of the high cost of research and development.
But this...is just horrifying. Immoral.
But this...is just horrifying. Immoral.
294
The fact is that the R&D budget of big pharma in general (not just these leeches) is outweighed by the advertising budget. The pharma-encouraged meme that they need these high prices to develop new drugs has long been a lie.
And, much of the cutting-edge drug technology is developed with government money under government grants to researchers. It isn't paid for by the pharma industry at all.
And, much of the cutting-edge drug technology is developed with government money under government grants to researchers. It isn't paid for by the pharma industry at all.
4
Why did you "always" buy that argument? Did you never once take the time to do some research on the topic? Although our media outlets frequently do a less than stellar job in keeping us well-informed on the issues and reality, the information about Big Pharma has been out there for years. You could have looked for it.
1
You shouldn't have bought it at all. These companies spend multiples of R&D costs on advertising; and they have the highest profit margins of any industry, including oil and gas. By far.
1
Jump of these types are pure greed and nothing else. We don't need companies like this operating inside our country. We have laws to prevent price gouging during natural disasters (gas for example). When those controls don't work consumers don't forget and the businesses often pay for it after the fact. Unfortunately the same "shop elsewhere" can't be applied, which means we need government controls to keep these unethical businesses in check.
158
The drug companies should b scared. Their outrageous greed has gotten the public so angry that some of their bought and paid for politicians may be forced to take action. Note to political hacks: The American public is just about up to here with representatives who represent themselves and anyone else who is paying.
260
The problem is until a majority of the country does what would be expected and removes the GOP from office nothing regarding this is getting done.
As if capitalism wasn't ghoulish enough already.
31
How can this happen? First and foremost, as Jimmy Carter recently discussed in his interview with Oprah, we are no longer a democracy but an oligarchy. His is an evidence-based statement given a study from Princeton, and similar affirmations from other independent scholars, and reported by the BBC, but understandably not highlighted in American newspapers which are now largely owned or funded by our oligarchs.
We have impotent antiquated regulation that promotes the facade that we are still a functional democracy, but in reality, our government is now shaped, staffed, and supervised by the oligarchs. The obscene and utterly inhumane behavior of this company and its leader, Dr. Evil, is a direct reflection of who our government really serves, and who no longer matters.
We have impotent antiquated regulation that promotes the facade that we are still a functional democracy, but in reality, our government is now shaped, staffed, and supervised by the oligarchs. The obscene and utterly inhumane behavior of this company and its leader, Dr. Evil, is a direct reflection of who our government really serves, and who no longer matters.
487
A revolt including torches and pitchforks seems inorder. No sarcasm internded.
16
Governments can't control drug prices. Ask the folks who ran Nixon's price controls in the 1970s, which not only failed to contain prices, but also created shortages of critical materials and goods. After the price controls were lifted in 1976, prices soared, saddling Jimmy Carter with unbearable inflation and interest rates that helped cost him the 1980 election.
Also a direct reflection on how well Obamacare is working for the middle class.
I'm disappointed in the authors of this article. They waited until the 3rd to last paragraph to note that our Republican-run Congress has no problem with this form of criminal enterprise. All profit is good profit, after all.
On television, Turing's Martin Shkreli reminds one of Peter Lorre in his oiliest most psychopathic role. Lies drip from his lips like pus from a boil. I've not had the pleasure of seeing Mr. Pearson being interviewed. Mr. Shkreli will be a hard act to follow under the limbo bar of how low can you go. I'm in no hurry to meet Mr. Pearson; I'm still nauseous from Shkreli's performance.
What these two men epitomize is healthcare Republican style.
On television, Turing's Martin Shkreli reminds one of Peter Lorre in his oiliest most psychopathic role. Lies drip from his lips like pus from a boil. I've not had the pleasure of seeing Mr. Pearson being interviewed. Mr. Shkreli will be a hard act to follow under the limbo bar of how low can you go. I'm in no hurry to meet Mr. Pearson; I'm still nauseous from Shkreli's performance.
What these two men epitomize is healthcare Republican style.
47
It's the same principle we see with car repairs. Every part that breaks on my ancient car costs hundreds -- if not thousands -- of times more than what I effectively paid for it when I bought the car. Without that part, the car is undriveable. So I pay. Eventually, it will become cheaper for me to junk the car than to pay for another expensive repair.
The pharmaceutical industry works on the same general principle. The pill may cost just pennies to manufacture (and in the cases described in this story, the owner didn't pay a dime to develop the drug, so don't trot out that argument), but they can charge an unlimited price -- and get it -- because the alternative is junking the body (dying) and replacing it with another.
The pharmaceutical industry works on the same general principle. The pill may cost just pennies to manufacture (and in the cases described in this story, the owner didn't pay a dime to develop the drug, so don't trot out that argument), but they can charge an unlimited price -- and get it -- because the alternative is junking the body (dying) and replacing it with another.
13
Um, no. Your car parts are more expensive because there are fewer of them in demand and supply do ensure to manufacture. But these pills are not expensive to manufacture. The main cost was in their development, an expense which was recouped long ago. And the car/human body analogy is just silly. As you know.
Bad analogy. The manufacturing costs for older car parts are far higher than the manufacturing costs for older drugs. Same with warehousing costs. As galling as it is to those of us with older cars (and some other older items as well), at some point providing parts for those older cars and appliances, etc., really does become prohibitively expensive. There is absolutely nothing to be surprised about when they cost far more than when you bought the car. That is not the case for drugs of this type.
There is no room for the profit motive when it's a matter of life and death.
234
Without the profit motive none of the drugs that have quadrupled the average person's lifespan over the past 200 years would have been invented. Food is a matter of life or death in some circumstances as is energy, transportation, information and other entities. The assertion that something is important does not serve well to remove it from the private sector when the public sector is so bureaucratic, so inept, so ineffective as to be incapable of doing its own jobs well.
Apparently there is in fact unlimited room for the profit motive when it comes to matters of life and death, on the basis of the evidence.
Do be sure to vote for at least right-wing Republicans, if far-right lunatics such as Ted Cruz and Rand Paul and Mike Huckabee and Jason Chafetz aren't available, won't you?
Do be sure to vote for at least right-wing Republicans, if far-right lunatics such as Ted Cruz and Rand Paul and Mike Huckabee and Jason Chafetz aren't available, won't you?
1
Profiteering is the new capitalism...
2
This is classic case where government should step in. If US goverment has to bear these ridiculous drug prices and unemployment benefits for all the workers that Valeant's lays off, it should use its anti-trust muscle to stop Valeant from acquiring companies. Better yet, it would be fun if US Government could arbitrarily raise the tax rate to 99.9% just on Valeant or Turing Pharma's management and shareholders.
21
Governments stepping in created this problem. FDA blocks import of generics from outside USA giving valeant it's monopoly
Yet another example of how our bought and paid for legislators fail to protect us.
Thank you, Citizens United. Thank you, Republicans. Thank you, lobbyists.
Thank you, Citizens United. Thank you, Republicans. Thank you, lobbyists.
62
For a fraction of the cost these legacy drugs the Dept. HHS could contract for another company to produce them at a fraction of the price, and put Valeant out of business.
30
The drugs cited here are already available online from legitimate Canadian pharmacies at a fraction of the U.S. price. For a list of these pharmacies go to the website of the Canadian International Pharmacy Association (CIPA). For example, Glumetza costs $157 instead of $10,020. The manufacturer? Valeant! Millions of Americans, in the know, purchase drugs this way.
2
I'm sorry but this type of response infuriates me. Not everyone is computer literate. Not everyone has access to a computer they can use for personal reasons. Many elderly and poor people are totally left out by this. Busy families with two working parents, while they may be more comfortable with computers, may lack the time to go searching for cheap--and "technically illegal" drugs instead of picking up a prescription at the pharmacy in their local supermarket while shopping. Why should any American have to be "in the know" to pay a decent price for their medications?
1
So this is how 21st century vulture capitalists reap their rewards. May there be a very special place in hell for these "entrepreneurs."
27
This is evil ... sorry, I can't find any other word to describe it.
42
It might be legal, but everyone knows; If it looks like a crime, it is a crime no matter what the law says.
13
These pharma companies are exhibiting unconsousonal greed. The users of these drugs are not the only ones being hurt, although they are the most affected. Since the insurance companies must pay these excessive prices, they recoup these excessive costs by raising the rates which all insured people pay.
10
Ghouls.
15
Why shouldn't the government use the theory of eminent domain to assume copyright control of these generics (and then license that copyright to a manufacturer content to produce these medications at a reasonable profit) - and thus put a permanent damper on this sort of financial chicanery?
18
Eminent domain doesn't just mean that the government can take something. Rather, eminent domain is a forced sale. And so when the government takes something by eminent domain, it has to pay "just compensation" for the property taken. The owner of the drugs still has to get paid.
Also, under your theory of eminent domain, what happens the next day? Why would anyone spend millions, or hundreds of millions, or billions, to develop any form of intellectual property that could simply be taken away?
Also, under your theory of eminent domain, what happens the next day? Why would anyone spend millions, or hundreds of millions, or billions, to develop any form of intellectual property that could simply be taken away?
"That could change now that the prices are higher, but it would probably take several years for a generic-drug maker to win approval from the Food and Drug Administration to start selling such a product."
That's why this business model is successful. The government creates artificial barriers to competitors trying to make generic equivalents. They should try to encourage them to make competing drugs, rather than discouraging with elaborate procedures for approving drugs that are already approved for sale.
That's why this business model is successful. The government creates artificial barriers to competitors trying to make generic equivalents. They should try to encourage them to make competing drugs, rather than discouraging with elaborate procedures for approving drugs that are already approved for sale.
7
Amazing. You read a story about PRICE GOUGING on medication by a corporation and through some mystical/magical process you arrive at the conclusion that government is the problem....wow!
Does it ever occur to you that THE MARKET is not some perfect system for divining truth but is in fact just a consensual hallucination of many, many people and as such is just as vulnerable to error any any human thought or opinion?
Does it ever occur to you that THE MARKET is not some perfect system for divining truth but is in fact just a consensual hallucination of many, many people and as such is just as vulnerable to error any any human thought or opinion?
2
@chad - So if some other company could offer this drug for $5 a pill, then do you think Valeant would make any sales?
@jonathan - So if we can outlaw price gouging during national emergencies (which we do) why don't we just make this type of equally immoral price gouging/profiteering illegal as well?
My comment to you was more about your immediate jump to 'the government creates artificial barriers' stuff and why that seemed rather bizarre given the piece we had both read. My apologies if you aren't a free market freak...but your comment that somehow government was the problem in this situation seemed (and seems) rather loony.
My comment to you was more about your immediate jump to 'the government creates artificial barriers' stuff and why that seemed rather bizarre given the piece we had both read. My apologies if you aren't a free market freak...but your comment that somehow government was the problem in this situation seemed (and seems) rather loony.
2
I've said ti before and I'll say it again: America does not have a health care system. We have a wealth care system. The health care we receive has no relation to the health care we need. It's related to how much money we have to spend. No money, no decent care. Our corporations and our elected officials, the ones we voted into office, prefer it that way. It's so much easier if we drop dead before we get old enough to collect social security. If we suffer, it's our own fault for not making enough money to pay for the cost of the care we need or the care that would keep us healthy and productive.
96
Risk and reward should be commensurate.
If a company develops novel therapeutics, and takes them through the rigorous scientific and regulatory maze, it should be able to reward the investors and shareholders who took the risk with their money. The price for the successes has to justify the many, many drugs that do not make it all the way through in order to keep attracting investment. There are a lot of really good drugs on the horizon for previously untreatable diseases. We want to keep investment up so we can continue to alleviate human disease and suffering.
The risk here is minimal. There is no justification for the reward. None. It is worse than the high speed traders who drill fiber optic cables through mountains to get a millisecond advantage on distant exchanges. At least they have to lay cable and hire programmers to exploit the advantage.
If a company develops novel therapeutics, and takes them through the rigorous scientific and regulatory maze, it should be able to reward the investors and shareholders who took the risk with their money. The price for the successes has to justify the many, many drugs that do not make it all the way through in order to keep attracting investment. There are a lot of really good drugs on the horizon for previously untreatable diseases. We want to keep investment up so we can continue to alleviate human disease and suffering.
The risk here is minimal. There is no justification for the reward. None. It is worse than the high speed traders who drill fiber optic cables through mountains to get a millisecond advantage on distant exchanges. At least they have to lay cable and hire programmers to exploit the advantage.
13
No cure for greed.
6
BUT there is a cure for this behavior - USA joins other developed countries in Regulating Prices - if our elected officials won't work to help improve the lives of Americans Get Rid of Them and elected people who will.
Greed Plain and Simple and the Rich Rewards come at the cost of lives of American citizens.
It's Disgusting what some of these companies are doing.
Greed Plain and Simple and the Rich Rewards come at the cost of lives of American citizens.
It's Disgusting what some of these companies are doing.
2
The Republicans, led by big business saw another cash cow from the government. This time it was the Medicare Drug insurance. You'll remember the Republicans also want to privatize Social Security and start personal medical savings accounts. You know all those trillions would go into big business and Financial investment firms...........enabled by the paid off Republicans.
26
What is up with all these management consultants and hedge fund managers suddenly getting into biotech? It looks like they've all gotten bored with gambling with retirement funds that they now look to new challenges to screw people over such as price hiking critical medications to the point of death.
35
"Valeant defended itself, ... “prices its treatments based on a range of factors, including clinical benefits and the value they bring to patients, physicians, payers and society. It says patients are largely shielded from price increases by insurance and financial assistance programs the company offers, so that virtually no one is denied a drug they need."
What self serving drivel!
1) Thus if a drug is valuable almost any price can be justified regardless of its costs to manufacture? This is particularly loathsome when the drug company spent no R&D money to bring it to market.
2) Even if insurance were to pick up the total expense for an individual, the cost of these price increases to society (premiums, taxes) is very real.
Would it be okay if a venture capitalist were able to but the water supply system from a bankrupt city and then charge $1.00 a gallon because water was valuable?
What self serving drivel!
1) Thus if a drug is valuable almost any price can be justified regardless of its costs to manufacture? This is particularly loathsome when the drug company spent no R&D money to bring it to market.
2) Even if insurance were to pick up the total expense for an individual, the cost of these price increases to society (premiums, taxes) is very real.
Would it be okay if a venture capitalist were able to but the water supply system from a bankrupt city and then charge $1.00 a gallon because water was valuable?
40
Now there are even more drug dealers and kingpins.
18
Pearson's in New Jersey? Time for someone to pay him a visit and make him an offer he can't refuse.
23
Good one! Maybe our precious Governor Christie could do the job.
1
We allow big oil to tell us there is no global warming and everything is just
peachy. We allow be pharma to steal our money while other countries pay far less. We pay outrageous price for medical care while insc. companies rake in money for shareholders. Fox preaches to the uninformed that they should get rid of Obama care forget about climate change and send immigrants home.The rest of us just sit around and complain. When will we take back this country from the people that are holding down because of avarice or idiocy.
This could and should be a great country but the far right is bent on taking us back to the Middle Ages making the US a theocracy and bringing this country to its knees.
peachy. We allow be pharma to steal our money while other countries pay far less. We pay outrageous price for medical care while insc. companies rake in money for shareholders. Fox preaches to the uninformed that they should get rid of Obama care forget about climate change and send immigrants home.The rest of us just sit around and complain. When will we take back this country from the people that are holding down because of avarice or idiocy.
This could and should be a great country but the far right is bent on taking us back to the Middle Ages making the US a theocracy and bringing this country to its knees.
107
How is taking an existing drug and raising the price a few thousand percent in order to capture the real "value" provide by the drug overnight different from a local hardware store raising the price of plywood or a generator by many times over before a hurricane? Both attempt to capture the true value of the product for the time.
In a sense, if one robbed a 7-11, one would go immediately to jail and not pass Go to collect $200 while if one were to raise the price of a life saving drug many times over one would get to fly around on a private jet and collect billions. Can you imagine, if a lobby of 7-11 robbers was created making such a crime legal? Ah, the American political system only can one imagine the possibilites.
In a sense, if one robbed a 7-11, one would go immediately to jail and not pass Go to collect $200 while if one were to raise the price of a life saving drug many times over one would get to fly around on a private jet and collect billions. Can you imagine, if a lobby of 7-11 robbers was created making such a crime legal? Ah, the American political system only can one imagine the possibilites.
24
The extent to which hardware stores raise the price of plywood or generators or whatever in the face of a natural disaster is debatable. After all, most of them have to depend on customers' good will after the disaster is over. But, leaving that aside, one can at least make the argument that when the disaster is approaching, certain supplies are limited and cannot be increased quickly. Basic economics teaches us that supply and demand determine prices, so to some extent, there's a logic to the sellers' jacking up the prices to take advantage of a temporary situation. Just what is the equivalent situation with these drug companies?
2
That our congress does nothing to curtail such evil, predatory practices proves whose side they are on. A government by, of and for the people? Excuse me while I vomit.
140
There's a drug for that!
Unfortunately, you can't afford it.
Fortunately, we can bill the government so everybody pays!
Unfortunately, you can't afford it.
Fortunately, we can bill the government so everybody pays!
6
our congress did this!
I have proposed to my State's Medical Society that we doctors stop prescribing drugs made by Valeant. The only way they will get the message is if they are hit in the wallet by those of us who prescribe their products. In the meantime we need to help our patients get products without alternatives from foreign sources.
141
capitalism at its worst, and probably at its essence. we need something different.
15
It is increasingly evident that Faustian bargain to pass the ACA, to spare the drug companies from central planning such as permitting the Health and Human Services Department to negotiate lower drug prices, agreed to be the President in return for poltical and $ support from big pharma, defanged the government to deal appropriately with these vultures.
8
And just what is your alternative to that "Faustian bargain" that could have possibly been passed given current political thinking in this country?
3
It would be interesting to see where the SCOTUS would side if the argument ever went toward regulation of drug prices.
4
It is no longer capitalism if you are playing with people's lives. If the poor and ordinary folk cannot afford life saving drugs, its not right or ethical but criminal. Its social Darwinism at its worst where only the rich have the right to survive.
37
Welcome to the free market and why capitalism has a bad name.
14
Greed has reared its ugly head under every economic system ever devised. If you don't think so, then read some historic documents, including the Old Testament section of the Christian Bible. Some political systems do better at controlling greed than others. But, IMO, greed is something like water--it never ever stops trying to get a foothold, chipping away and chipping away at those customs, laws, and other measures meant to protect against it. In part thanks to a media industry that is largely controlled by those who most benefit from greed, in part thanks to the power of propaganda on even educated populations, and in part thanks to own laziness and apathy of the population, greed has once again risen to the heights of power in the U.S., just as it did during various other periods in our history, including the gilded age. Properly regulated capitalism has the power to lift the masses out of poverty; unregulated capitalism, hi-jacked for the good of only a tiny minority, has the power to destroy us all. Unfortunately, too many Americans don't get the distinction.
84
I don't understand the part about the Glumetza. This is a branded version of a generic Metformin extended release drug. Metformin XR is available for $10 at WalMart and other chains for a 90 day supply 180 tablets 500mg. It's the same thing. In some places generic diabetes drugs are dispensed without copy's as promotions in chain super markets. I believe Dhop Dite does this in some locations in NYC and New Jersey.
3
I can buy the generic Cuprimine - penicillamine - from Allday Chemist in India for $0.72 - that's 72 cents - per pill. It's a reliable company and for years has provided me with life-saving medication at a price I can afford.
They sell generic metformin - Glumetza - for no more than 8 cents per pill. From what I understand, Mephyton is simply Vitamin K1 - available in health food stores and online. Whether this is the exact formulation needed for clotting is irrelevant since vitamin K1 has been around for decades.
Chances are that many of the drugs mentioned and not mentioned in the article are made in India for American Big Pharma. There is simply no excuse for Valeant's prices, but for some drugs there are other sources.
They sell generic metformin - Glumetza - for no more than 8 cents per pill. From what I understand, Mephyton is simply Vitamin K1 - available in health food stores and online. Whether this is the exact formulation needed for clotting is irrelevant since vitamin K1 has been around for decades.
Chances are that many of the drugs mentioned and not mentioned in the article are made in India for American Big Pharma. There is simply no excuse for Valeant's prices, but for some drugs there are other sources.
68
I buy meds from Canada to save major $... Almost reluctant to post about it b/c I'm sure there's so Big Pharam sociopath CEO trying to close our avenues to affordable overseas options.
7
FDA can run valeant out of business in one day by allowing import of these generics from India, so easy no need for melodrama and more regulations. But I can bet that in our lobbyist driven government-healthcare apparatus, this simple action will never be undertaken
3
Unfettered capitalism is deadly
47
You live in a mixed economy!
@michael: "Unfettered capitalism ..."
The FDA and the SEC *regulate* pharmaceutical companies. The pharmaceutical industry is definitely not "Unfettered".
@Apex: What do you mean by "a mixed economy"?
The FDA and the SEC *regulate* pharmaceutical companies. The pharmaceutical industry is definitely not "Unfettered".
@Apex: What do you mean by "a mixed economy"?
The little town I live in recently lost a six year legal battle against a developer who wanted to be the first to operate a type of business that nobody here wants. The ultimate reason the developer won was, "You can't stop somebody from making money! It's a fundamental right."
We need to change that here in America. There are things that are more important than just making money.
We need to change that here in America. There are things that are more important than just making money.
183
Yes, this madness has got to stop. Watch who,you vote for.
45
There appears to be a word choice error in the lead in to the story. Might one surmise that the intent was not to write that Valeant's policies make the drug industry nervous, but rather envious?
Valeant is acting in complete accord with the rules of capitalism, as espoused by a majority of the members of Congress and the financial industry, just to mention two constituencies. Even though the company is incorporated in Canada, it is in perfect compliance with the requirements as set forth in the corporate charters in 49 of 50 states, namely, in their own words, "Our most important objective is to serve our stakeholders".
There was a time that corporations were also required to serve their communities, and were we operating in those times, there would be cause to question Valeant's practices. But, thanks to efforts by the US Chamber of Commerce, ALEC, and legislators in the various states, serving the community is no longer an option. That is capitalism in action.
Is it any wonder that progressives, and even many social conservatives (the Pope, to name one) are of the opinion that capitalism has gone too far?
Valeant is acting in complete accord with the rules of capitalism, as espoused by a majority of the members of Congress and the financial industry, just to mention two constituencies. Even though the company is incorporated in Canada, it is in perfect compliance with the requirements as set forth in the corporate charters in 49 of 50 states, namely, in their own words, "Our most important objective is to serve our stakeholders".
There was a time that corporations were also required to serve their communities, and were we operating in those times, there would be cause to question Valeant's practices. But, thanks to efforts by the US Chamber of Commerce, ALEC, and legislators in the various states, serving the community is no longer an option. That is capitalism in action.
Is it any wonder that progressives, and even many social conservatives (the Pope, to name one) are of the opinion that capitalism has gone too far?
413
24b4jeff
I think you age conflating and misunderstanding things.
Capitalism woks just fine when rational thought is applied. We had a well regulated economy for nearly 50 years and the country did the best it ever has.
The members of congress you speak of are not referring to capitalism. They are talking about the economy we have now where the wealthiest can do what they can paty to get done including holding back competition and making the government (The Common Taxpayer) cover all their losses including investments in new ideas even if they turn out to make money.
Anyway it is not capitalism it is the irrational destruction of good proper regulation that insisted on business being of benefit to the people and nation it was in and that they think through and show their work before doing anything that could be dangerous in any way.
Also it made them pay a proper amount of tax to fund the system that they got so wealthy from.
S it is not capitalism that has done anything since its an idea not a person. It is a group of people operating for their own benefit whom have lied and cheated their way to gaining control over our government so they could destroy it and be free to be the criminals they always were. Hence this company buying drugs and jacking up the prices for no other reason than they can get away with it. That is almost exactly the same as loan sharking and it used to be illegal for obvious reasons.
I think you age conflating and misunderstanding things.
Capitalism woks just fine when rational thought is applied. We had a well regulated economy for nearly 50 years and the country did the best it ever has.
The members of congress you speak of are not referring to capitalism. They are talking about the economy we have now where the wealthiest can do what they can paty to get done including holding back competition and making the government (The Common Taxpayer) cover all their losses including investments in new ideas even if they turn out to make money.
Anyway it is not capitalism it is the irrational destruction of good proper regulation that insisted on business being of benefit to the people and nation it was in and that they think through and show their work before doing anything that could be dangerous in any way.
Also it made them pay a proper amount of tax to fund the system that they got so wealthy from.
S it is not capitalism that has done anything since its an idea not a person. It is a group of people operating for their own benefit whom have lied and cheated their way to gaining control over our government so they could destroy it and be free to be the criminals they always were. Hence this company buying drugs and jacking up the prices for no other reason than they can get away with it. That is almost exactly the same as loan sharking and it used to be illegal for obvious reasons.
2
"it is in perfect compliance with the requirements as set forth in the corporate charters in 49 of 50 states, namely, in their own words, "Our most important objective is to serve our stakeholders"."
That is simply not true. If you have any proof whatsoever, please provide the citations that support your claim. The fact is, you can't.
The idea that shareholder interests are paramount was an idea put forth by Milton Friedman about 1970. No state or federal laws support it, and, according to Professor Lynn Stout of Cornell University, no corporate charters include it. It is a myth that is oft-repeated--by the right as a rationalization for greed and by some on the left to demonstrate their failure to understand the benefits of properly regulated capitalism.
Take the time to do a bit of research and don't simply repeat everything you hear.
That is simply not true. If you have any proof whatsoever, please provide the citations that support your claim. The fact is, you can't.
The idea that shareholder interests are paramount was an idea put forth by Milton Friedman about 1970. No state or federal laws support it, and, according to Professor Lynn Stout of Cornell University, no corporate charters include it. It is a myth that is oft-repeated--by the right as a rationalization for greed and by some on the left to demonstrate their failure to understand the benefits of properly regulated capitalism.
Take the time to do a bit of research and don't simply repeat everything you hear.
I think you are mistaking Capitalism for Monopolism, something which your great nation recognised in the 1890's with the passage of ground breaking anti-trust laws. Then as now the creation of monopolies large or small does no public good. Then as now it generates public anger and results in legislators taking action. The only people to blame are the imbeciles who made the decision to implement such extraordinary price increases. A very simple independent SWOT analysis would have told them so.
2
'While we appreciate the public’s concern, we have a responsibility to our shareholders to murder people and the free market dictates that there is a demand for that murder. Those who complain clearly don't understand how an unbridled and extremist view of capitalism has become a justification for just about everything.'
-Any Pharmaceutical
-Any Pharmaceutical
78
"But Valeant’s habit of buying up existing drugs and raising prices aggressively,"....This comment is very misleading. Just who is Valeant buying the drugs from? You can't "buy" generic drugs. Generic drugs are freely available to anyone who thinks they can make a profit by selling them. The price of generic drugs are strictly a market issue - yes of course if no one else want to make them, Valeant can sell them for whatever they want, but if there is really any money to be made it is extremely unlikely that other drug makers won't quickly jump in and create a competitive price.
1
Valeant is exploiting a loophole in the law : A generic competitor must get FDA approval by showing their version is equivalent to an existing FDA approved generic. This requires purchase of the existing generic drug. By refusing to sell the generic drug to anyone but to a patient directly, a US company who is the sole manufacturer of the generic drug has an effective monopoly.
The solution is to allow unrestricted importation of generic drugs from a list of countries that already have strong drug safety laws.
The solution is to allow unrestricted importation of generic drugs from a list of countries that already have strong drug safety laws.
55
It costs $20 million and three to five years for a drug manufacturer to get approval from the FDA to manufacture and sell a generic equivalent. If it took six months and $1 million, Valeant wouldn't be able to get away with quadrupling the price. The problem should be attacked from the FDA side, with an explanation as to why it is so time consuming to get a generic drug approved by them.
41
41
3
I understand that generic drugs are often difficult to produce. It is not enough to have the patented chemical formula for a drug. There is also know-how required which can affect the efficacy of the drug, the rate of absorption into the system and other important factors. If a generic is to be sold as a substitute for the original, it must have the same efficacy as the original, and it takes time and money to establish this to the satisfaction of the FDA. There would be an outcry if the FDA did not do this.
1
The best possible argument for drug price controls.
26
This behavior shows a stunning lack of ethics which could be solved if lawmakers chose to. That they have not, implicates our current lawmakers in the price gouging of the American people.
193
This extreme opportunism by certain players in the drug industry should be a case study in business schools like Harvard to help train future business leaders how not to corrupt the free enterprise system and bring down upon businesses the kind of regulation they so richly deserve. We are not talking about an overpriced smartphone here but human lives and people's economic survival, all facilitated by a Republican controlled Congress.
When will enough voters make the connection between economic injustices and the GOP?
When will enough voters make the connection between economic injustices and the GOP?
549
This is exactly the kind of business strategies that are taught at ivy league business schools - selfishness, cruelty and greed 101. Ethics is for suckers.
4
MDM -
Valeant's business practices are not promoted by Harvard or other prestigious business schools. I have used many of Harvard's case studies which try to distinguish between good and bad business practices, showing when businesses act with and without scruples. The gray areas stimulate healthy debate among students.
Valeant's business practices are not promoted by Harvard or other prestigious business schools. I have used many of Harvard's case studies which try to distinguish between good and bad business practices, showing when businesses act with and without scruples. The gray areas stimulate healthy debate among students.
2
The Democrats talk a good story, but ObamaCare was designed to shovel money into the pockets of the 1%. When will Democrats realize that big government is very costly and favors the rich?
The problem of drug manufacturers jacking up the price of generic drugs would disappear overnight if it weren't that it costs $20 million and three to five years to get approval from the FDA to sell a generic drug. Clean up the regulatory regime which is maintained in order to favor the big and well connected.
It would take a competent executive branch to fix the problem.
The problem of drug manufacturers jacking up the price of generic drugs would disappear overnight if it weren't that it costs $20 million and three to five years to get approval from the FDA to sell a generic drug. Clean up the regulatory regime which is maintained in order to favor the big and well connected.
It would take a competent executive branch to fix the problem.
1
This is what happens when the unprincipled Wall St. ethos of virulent greed infects everything else. Valeant and hedge-fund parasite William Ackman teamed up to attempt a takeover of Allergan in order to feed on the company's vast R&D budget, lay off thousands, and profit from jacked up prices on successful Allergan products. Allergan fended them off only by being bought by Actavis, and Ackman still made $2 billion on the deal, amidst lawsuits for insider trading, etc. Employees, patients, sick people, entire communities, whomever, must be sacrificed to these gods of unmitigated greed. The sordid depths to which unregulated capitalists have plunged our lives is beyond obscene.
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How much in political contributions do the hedge funds and Wall Street elite donate to Democrats and big government RINOs? This particular abuse takes place because it costs $20 million and three to five years to get the FDA to approve a generic drug for sale. The believers in big government are in it for the money.
The reason for the revolution within the Republicans is that the fiscal conservatives want to break the unholy alliance between the corporate welfare Democrats and Republicans. Not all regulation should be eliminated, but there is no possible excuse for the high cost of getting a generic drug approved, except to favor the 1%.
The reason for the revolution within the Republicans is that the fiscal conservatives want to break the unholy alliance between the corporate welfare Democrats and Republicans. Not all regulation should be eliminated, but there is no possible excuse for the high cost of getting a generic drug approved, except to favor the 1%.
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@ebmem - You seriously think this is the fault of the Democrats and the supposed RINOs? Seriously? Hey, I've got a bridge in NY I'd like to sell you....
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I think its time for a new tax on excessive drug profits. Say around 110%.
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Amazing.
Drugs cost billions to develop. Are you really just suggesting that they be given away? If the original drug maker sells it, should the buyer be enjoined from conducting business as he sees fit?
Yet another attack piece, long on opinion but short on fact-finding and journalism. Seriously, is there anyone left at this paper who ISN'T nakedly advocating for a liberal/progressive agenda?
Drugs cost billions to develop. Are you really just suggesting that they be given away? If the original drug maker sells it, should the buyer be enjoined from conducting business as he sees fit?
Yet another attack piece, long on opinion but short on fact-finding and journalism. Seriously, is there anyone left at this paper who ISN'T nakedly advocating for a liberal/progressive agenda?
2
If you'd read the article you'd see that this company doesn't spend its money developing new drugs.
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If a particular drug Costs X to develop then we should all be able to see the books that prove that money was spent on research and development. Eve if it does, that cost does not make it OK to profiteer. Having that ledger of expenses the company can lay out a pricing plan that gets them that money back over time and then lower the price having recouped that expense.
This is after all medicine not some other not necessary for life product. Though all products should be priced at a reasonable 10% over cost of production. It would make life better for everyone even the greedy scum who jack up prices fort no good reason.
This is after all medicine not some other not necessary for life product. Though all products should be priced at a reasonable 10% over cost of production. It would make life better for everyone even the greedy scum who jack up prices fort no good reason.
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Yes, California Man, we really are suggesting that they be given away. Any other straw men you want to throw out there?
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At the beginning of the article, we learn about the case of Bruce Mannes, who has been using the drug Cuprimine for the past 55 years. He is worried worried now that Valeant has raised the price of the drug dramatically.
But later in the article, we learn that there is a foreign manufacturer makes a generic version of Cuprimine for $1 a tablet - which is $259 less than the Valeant version. So the question is: why is Mr. Mannes not buying the generic version of the drug instead of the Valeant version?
But later in the article, we learn that there is a foreign manufacturer makes a generic version of Cuprimine for $1 a tablet - which is $259 less than the Valeant version. So the question is: why is Mr. Mannes not buying the generic version of the drug instead of the Valeant version?
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Because the FDA, and the ACA, prohibits Americans from buying drugs from overseas. The FDA, and the industry, claim that overseas made drugs are unsafe. Even though most drugs are not made in manufactured in the US to begin with; that was off shored years ago.
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It is currently illegal to buy generics from outside the USA. In practice law enforcement looks the other way if patients themselves import up to a 90 day supply but not everyone is comfortable breaking the law. It also is not a good solution if the drug requires refrigerated transport (eg insulin).
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Of course we should never have a discussion about what pricing model to use or even whether or not it is ok to charge whatever the market can bear.
Isn't being rational and humane in how you do business just Socialism in disguise?
Isn't the mere mention of "Profiteering" really just communism in disguise?
Come on now, Mr. Pearson & his wife are coming up with the scratch, what's the prob. Heck it seems they weren't even maximizing their earning potential until Valeant goaded them out of laziness. Sheesh some capitalists they are, not spending every moment trying to make money is just pure lazy. I bet they collect pensions too. Probably Social Security and Medicare on top of that. dam commies.
If you don't get the snark here you are part of the problem.
Isn't being rational and humane in how you do business just Socialism in disguise?
Isn't the mere mention of "Profiteering" really just communism in disguise?
Come on now, Mr. Pearson & his wife are coming up with the scratch, what's the prob. Heck it seems they weren't even maximizing their earning potential until Valeant goaded them out of laziness. Sheesh some capitalists they are, not spending every moment trying to make money is just pure lazy. I bet they collect pensions too. Probably Social Security and Medicare on top of that. dam commies.
If you don't get the snark here you are part of the problem.
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Sorry, Magic. I don't get snark - just poorly written satire with a confused liberal agenda. Guess I'm part of the problem.
The problem understanding people like you.
The problem understanding people like you.
1
Well, I got the snark, and I agree that it is poorly written satire, but "a confused liberal agenda"? What does that mean? That profiteering from the misfortunes of others is part of the conservative agenda and is therefore not confused but a model of clarity to be applauded and upheld?
6
This article is a perfect case why the US government should be regulating drug prices and the drug industry, in general. The so called "free market", in this case, is designed to exact the highest prices and to kill people in the process. This is pure greed by Valeant, its stock holders and their out of leagl touch Candaian based CEO. And not just Valeant, but all the drug manufacturers.
A perfect example of President Obama throwing America under the bus to get a health care law; any health care law. A law that never had any cost containment or industry restrictions, because the health care industry wrote the bill. And Congress passed a health care law, without reading it.
The drug industry can exact any price they choose to set. This leads to higher costs the consumer has to bear either taking the drug or others paying higher premiums for providing the drug. In the past, i have said, that all drug advertising should be banned to lower costs. No I add that all drug prices should be regulated and set, like it is done in every other country.
Bernie Sanders is running fro president to fix the broken health care system and our 1% serving government. The ACA did not fix the problem, all it did was force people to buy insurance; period. Profits are higher than ever and the health care industrial complex continues to show their greed; rising prices much faster than inflation.
This article shows what happens when unregulated "free markets" are allowed to operate unchecked.
A perfect example of President Obama throwing America under the bus to get a health care law; any health care law. A law that never had any cost containment or industry restrictions, because the health care industry wrote the bill. And Congress passed a health care law, without reading it.
The drug industry can exact any price they choose to set. This leads to higher costs the consumer has to bear either taking the drug or others paying higher premiums for providing the drug. In the past, i have said, that all drug advertising should be banned to lower costs. No I add that all drug prices should be regulated and set, like it is done in every other country.
Bernie Sanders is running fro president to fix the broken health care system and our 1% serving government. The ACA did not fix the problem, all it did was force people to buy insurance; period. Profits are higher than ever and the health care industrial complex continues to show their greed; rising prices much faster than inflation.
This article shows what happens when unregulated "free markets" are allowed to operate unchecked.
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The problem is that this is NOT a "free market". In a free market any pharmacy could buy drugs from anywhere in the world. Patents and copyrights would not apply. This the kind of free market capitalism advocated by Adam Smith, the inventor of the field of Economics, who was advocating against the British system dominated by government granted monopolies. The US constitution guarantees two of those monopolies for patents and copyrights, but actual US law provides protection for many other types of monopolies. US law needs to changed to revert to just the minimum protection guaranteed under the US constitution as it existed 200 years ago : 14 years of patent protection and 34 years of copyright protection and no other monopolies.
5
And health insurers are not subject to anti-trust laws, thus creating monopolies.
And, no, pharmacies are not allowed to purchase drugs off shore. They must purchase from the US drug companies themselves or outlets approved by the FDA.
And, no, pharmacies are not allowed to purchase drugs off shore. They must purchase from the US drug companies themselves or outlets approved by the FDA.
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It would be interesting to see how the TPP is going to affect the U.S. drug industry and drug prices.
1