Drug company CEO calls 400 percent price hike ‘moral requirement’ – By Jessie Hellmann – 09/11/18
Nostrum Laboratories, based in Missouri, raised the price of nitrofurantoin last month from $474.74 a bottle to $2,393, according to the Financial Times newspaper. The drug treats urinary tract and bladder infections.
CEO Nirmal Mulye said the price hike was based on market dynamics, according to the newspaper. “I think it is a moral requirement to make money when you can … to sell the product for the highest price,” he said.
And here we doctors and patients are, powerless, with our capitalist system and its primary directive of profit-seeking controlling much of our healthcare.
As our government is spending increasing amount on healthcare for older citizens, we’re allowing public corporations to step into this expensive, yet necessary, “social benefit” and accumulate obscene profits from our tax dollars.
Mulye said the branded version of the drug increased in price to $2,800.
“The point here is the only other choice is the brand at the higher price. It is still a saving regardless of whether it is a big one or not,” he said.
“I agree with Martin Shkreli that when he raised the price of his drug he was within his rights because he had to reward his shareholders,” Mulye said.
“If he’s the only one selling it, then he can make as much money as he can,” he added. “This is a capitalist economy, and if you can’t make money, you can’t stay in business.”
Mulye’s comments prompted swift backlash from Food and Drug Administration (FDA) Commissioner Scott Gottlieb.
“There’s no moral imperative to price gouge and take advantage of patients,” Gottlieb tweeted.
Yes, but he can’t do anything about it because he has no power over these corporations. It seems no one does.
“FDA will continue to promote competition so
speculators and those with no regard to public health consequences can’t take advantage of patients who need medicine.“
The FDA can do nothing about the stock market where these new giant healthcare corporations are reaping colossal profits by charging patients and tax-payers obscene amounts.