Turing Pharmaceuticals, the beleaguered biotechnology firm that acquired then raised the price of an old drug called Daraprim by 5,000%, has asserted that the availability of the drug will not be affected by the arrest of Martin Shkreli, the company’s former CEO.
Shkreli was arrested Dec. 17 on charges of securities fraud and the following day resigned as CEO of Turing Pharmaceuticals, which he founded in February 2015. On Friday, Turing announced the appointment of Chairman Ron Tilles to the position of interim CEO.
Turing has faced heated criticism since September after the company bought the 62-year-old drug Daraprim and hiked its price to $750 a tablet from $13.50. Shkreli adamantly defended the move, saying the money generated from the price hike will go toward Turing's research and development activities for rare diseases. Shkreli further inflamed critics by saying Daraprim’s new price tag was still below market value. (The Securities and Exchange Commission’s charges against Shkreli have nothing to do with the Daraprim pricing issue but are related to Shkreli’s alleged fraud committed at his former company Retrophin during a five-year period when he also was working as a hedge fund manager.)
After Friday’s leadership change, the company issued a preemptive statement and sent out a letter to healthcare providers addressing concerns regarding the continued availability of Daraprim. In the letter, which was shared via email to members of the media, Turing said it is “committed to ensuring patient access and affordability for Daraprim and has pledged that no patient needing Daraprim will ever be denied access.” In addition, Turing said the company has started to expand its distribution partnerships in outpatient settings to ensure optimal patient access.
For all the uproar Shkreli’s announcement caused, Turing has seemingly backpedaled on Daraprim's hefty price increase, at least for some parties.
On Nov. 24, Turing unveiled a pricing program for hospitals, which includes reductions of up to 50% of Daraprim’s list price. According to the company, hospitals are the first to treat about 80% of patients with toxoplasmosis encephalitis, the deadly disease Daraprim is approved to treat. Patients with HIV/AIDS and other individuals with compromised immune systems are more susceptible to acquiring the parasitic infection. Daraprim is also used in combination with sulfadoxine to prevent and to treat malaria.
In response to Shkreli's arrest, the company said it will continue to provide the drug to physicians and their patients through its Daraprim Direct program. As outlined in the Dec. 18 letter to healthcare providers, Turing is offering three major ways consumers in need of assistance can access Daraprim:
- Uninsured patients who meet eligibility criteria have access to Daraprim for no out-of-pocket cost through Daraprim’s patient assistance program.
- Patients with commercial insurance are not obligated to pay more than $10 out-of-pocket for their prescription.
- Patients with Medicare Part D insurance coverage have access to a charitable foundation, which Turing donates to, to assist with affordability for their disease treatment.
A spokesperson for Turing said via email that only commercial insurance companies will be paying the full price of Daraprim.
"Our priority continues to be supporting our healthcare providers and their patients to ensure that patients who need Daraprim have ready and affordable access to it," said Nancy Retzlaff Turing's chief commercial officer, said in the company-issued statement. "We pledge that no patient needing Daraprim will be denied access."
But some aren't convinced by Turing's promises. In an emailed statement, Clare Krusing, a spokesperson for the U.S. trade association America's Health Insurance Plans, said: "Turing's reckless pricing strategy undermines patient access and affordability. Without a comprehensive solution to address the price of the drug, Turing forces all stakeholders in the health system to bear the excessive cost."
