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US: Turing Pharm faces antitrust inquiry following 5000% drug price hike

 |  October 21, 2015

Turing Pharmaceuticals, the company that elicited public outcry after raising the price of its drug Daraprim by 5,000 percent overnight, faces an antitrust inquiry regarding its marketing and distribution of the drug, according to a report from JD Supra.

Martin Shkreli, the 32-year-old CEO of Turing Pharmaceuticals, headed the company’s purchase of Daraprim in August from Impax Laboratories for $55 million. Daraprim is an antiparasite medication developed 62 years ago.

In September, he increased the price of the drug from $13.50 to $750 per pill overnight, a decision that precipitated public backlash. Ultimately, Mr. Shkreli backed down and said he would lower the price of the drug to an undisclosed amount, according to the report.

However, Turing’s original announcement and subsequent public scrutiny captured the attention of the New York Attorney General’s office. According to the report, the antitrust chief under Attorney General Eric Schneiderman sent Mr. Shkreli and Turing a letter requesting he contact the Attorney General’s office to discuss the company’s distribution channel.

Full content: JD Supra

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