Senate launches Turing Pharmaceuticals investigation
The U.S. Senate sent the CEO of Turing Pharmaceuticals, Martin Shkreli, a letter on Wednesday informing him that the company is under investigation for the massive price increase of Daraprim.
Turing Pharmaceuticals was hit with a lot of negative PR after they raised the cost of Daraprim from $13.50 to $750 per pill, but the potential legal troubles they could be facing may be even more damaging. The letter was sent by the two leaders of the Senate Special Committee on Aging, U.S. Senators Susan Collins and Claire McCaskill. This committee has been investigating multiple pharmaceutical companies for their drug pricing practices.
“In particular, the Committee wishes to learn more about Turing Pharmaceuticals’ recent acquisition of the rights to sell Daraprim, a drug used to treat and prevent infections, from Impax Laboratories and Turing’s subsequent decision to increase the price of Daraprim from $13.50 per tablet to $750.00,” wrote Collins and McCaskill in the letter.
Why is price gouging by pharmaceutical companies a major concern to the Senate Special Committee on Aging? While these huge drug cost spikes are costly to many Americans, senior citizens are especially affected by price gouging in the pharmaceutical industry.
A Government Accountability Office analysis found that 29 percent of households with Americans aged 55 or older have no retirement savings and are without a pension plan. These are some of the people that are affected most by drug price gouging when they are in need of medication after they are no longer a part of the workforce.
The investigation has drawn more attention to Turing Pharmaceuticals’ price hikes, so even if the investigation rules in the company’s favor, the negative PR they have already received will have done some damage. Turing Pharmaceuticals’ hearing has been set to take place on Dec. 9, and could determine the magnitude of the company’s PR problem.
How will this investigation affect Turing Pharmaceuticals? Can they recover from the PR damage done? Leave a comment or talk to me on Twitter @Karbowski_Devon.