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/biz/ - Business & Finance

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901131 No.901131 [Reply] [Original]

>According to the New York Times, Martin Shkreli, 32, the founder and chief executive of Turing Pharmaceuticals, purchased the rights to Daraprim for $55 million on the same day that Turing announced it had raised $90 million from Shkreli and other investors in its first round of financing.
>you will never be an alpha as fuck entrepreneur

>> No.901132

>>901131
http://www.rawstory.com/2015/09/ex-hedge-funder-buys-rights-aids-drug-and-raises-price-from-13-50-to-750-per-pill/

link to story

>> No.901133

>>901131
Except he'll literally get smacked down by regulation and consumer boycotts within a week. Yes a week.

The tallest weed gets cut first.

>> No.901134

keked heartily; gaymosexuals on suicide watch

>> No.901135

>>901131
nah

>> No.901138

>>901133
>boycotting aids meds
breh

>> No.901140

* >you will never be a stupid as shit bro

I'm okay with this

>> No.901145

>Martin Shkreli is a League of Legends player who goes by the name "Cerebral" and began expressing interest in purchasing an esports team in 2014.[16] Enemy eSports announced that they had reject a $1.2 million offer from Shkreli. Eventually he founded his own team, Odyssey eSports, and aimed to qualify for the 2015 North American League of Legends Challenger Series. The team lost to Cloud9 Tempest in the qualifying tournament and failed to qualify. In August Odyssey merged with Imagine, with Shkreli becoming Chairman of the team.[17][18]

Even more okay with this

>> No.901148

>Draw too much attention to yourself for your greed
>get BTFO from all the attention and backlash

He should have creeped up the price gradually, instead of shooting himself in the foot.

>> No.901151

fuck this bitch ass, proof of an ever failing system how can something go from 1$ a pop in the beginning and then some fuckbag buys the rights and sells it at a stupid markup, its cool when you steal from the big guys that shit makes u robin hood but when you take from the people who struggle that makes you a bitch assfaggot who deserves to overdose on this very same pill after 75000$ worth of it is deposited into his rectum

>> No.901156

>>901131

the total tam would yield him $24,500,000,000
his sam is $455,000,000

Unless the WHO litigates for the case of a human rights violation in which case he's left with 90 million loss on his head.

actual outcome, who the fuck knows, but a realistic growth factor of 4x in the next three ish years is not that alpha, and considering the risk it may be downright suicidally stupid. Because his limited liability doesn't protect his reputation.

If you wanna go from millionaire to working at McD for the rest of your life this is the way to do it.

>> No.901175

>>901131
how much medicine does he need to not look like a douche?

>> No.901177
File: 34 KB, 493x402, 1426091302218.png [View same] [iqdb] [saucenao] [google]
901177

>>901131

He's actually doing good though, he's fucking with insurance companies.

Before, since the price was so cheap, insurances made people pay for it out of pocket since it was in their budget.

Now he owns the recipe and raised the price, insurance companies will have to start paying since most people on their plans can't afford $750 for a pill.

If you don't have insurance they will still give you the pill.

Yea he looks like a douche but he's still doing good.

>> No.901180

Shit I'd make $50M in a day if somebody would give me $500 to trade bitcoin

>> No.901185

>>901131
I draw the line at profiteering off of the pain and suffering of others. Karma is real.

>> No.901205
File: 46 KB, 600x600, 1442872305746.jpg [View same] [iqdb] [saucenao] [google]
901205

>>901177
Silly anon-kun, don't you know that insurance companies won't pay for it anyways?

>> No.901206

>>901180
kek

>> No.901229

Doesn't shit like this happen every day though?

It's just that this guy is hungry as fuck for attention

>> No.901231

This is fucking dope, LOVE THIS GUY.

Dude is my idol for the next few minutes.

>> No.901240

his company is Turingpharma
check out the site and judge for yourselves, in the media publications tab it talks about how certain qualifying patients would get the pill free of charge but it all still reeks of shit to me

>> No.901242

>>901156
>Because his limited liability doesn't protect his reputation.
Think he gives a fuck about his reputation? Its all about the money.

>> No.901243

>Shkreli
>Shrekli
>Shekeli
>Shekels

daily reminder that jews are evil

>> No.901258

>>901133
>the tallest weeds get cut down first

I rike dat.

>> No.901366

>>901242

do you know how venture capital works?

>> No.901377

This guy is a total douchelord. Also expect the government to send in the DOJ hitmen to injunction his company. Also rumor on wall street is that he owes a lot of money from his hedge fund days. This happens to all traders, even the successful ones. They end up owing money to some banker or mobster.

>> No.901382

>>901229
Not really. The only reason this happens is the government legalized monopolies with healthcare and drugs. They don't allow medicare to negotiate with drug companies. In other words there is no government regulation. Its a big criticism of American healthcare by viewers all of the world. Even Singapore is not that stupid. That country is a free market mecca.

>> No.901385
File: 309 KB, 510x553, relevant.png [View same] [iqdb] [saucenao] [google]
901385

Agree that this guy is a total scumbag, up there with any james bond super-villain. And deserves everything thats coming to him.

But goddamn that stock is so tempting,

>> No.901387

>>901385
The time has passed to invest in that stock. The bull rush has passed.

>> No.901431

meanwhile... kyle bass is being thwarted from stopping douchebags like this

http://www.bloomberg.com/news/articles/2015-08-24/kyle-bass-s-petitions-challenging-two-acorda-patents-rejected

maybe all this media attention will help him indirectly

>> No.901433

>being this much of a piece of shit

>> No.901457

http://www.pharmacychecker.com/brand/price-comparison/daraprim/25+mg/

what's stopping me from buying all these and selling them for $750 a pop.

>> No.901469

>>901457
The fact that you don't have reimbursement contracts set up with every major health insurance provider in the united states

>> No.901486

HIDE YO KIDS, HIDE YO WIFE CAUSE TOXOPLASMOSIS IS RAPING EVERYBODY OUT HERE

>> No.901670

i find it disgusting that there are all these fundraisers and donations poured into finding cures for shit that only gets resold back to us at stupid fucking markups humans are just shit in general and all these corporate fucks should go an hero

>> No.901674

>>901131

Walking pile of scum.

The world would be a better place without him.

>> No.901690

It will be months before other companies can create a cheaper alternative unfortunately.
This guy needs to learn a fucking lesson.
If someone has any personal contact info for this guy, please post.

>> No.901693

>Not raising it to something realistic like $50 a pill
I really wonder how he came up with $750.

>> No.901698

Kek, I'd do the same in his situation. What good is money if you have aids anyway? This man is a hero.

>> No.901710

Well this will go non-formulary with a quickness. I'll check to see if this has already happened at work tomorrow and post back if the thread is still up.

>> No.901718

>>901693
It probably was what "he" found affordable because he's never spent a day in middle class or lower.

>> No.901723
File: 3.16 MB, 390x300, .biz..gif [View same] [iqdb] [saucenao] [google]
901723

>>901148
>He should have creeped up the price gradually, instead of shooting himself in the foot.
This.
13.50 - 16 - 19 - 23 - 29 - 34 -39 - 46 - 59 - 69 - 85 - 99 - 119 - 139 - 175 - 199 - 249 - 299 - 359 - 420 - 499 - 589 - 650 - 750

One price step every six months. People would have noticed but he would not have been (immediately) crucified.
The question now is if his short term profits will make it worth this one drastic price increase.

>> No.901729

>>901723
He's an ex hedge fund guy. So he's thinking short-term profits. Plus he probably owes money to someone.

>> No.901730
File: 7 KB, 250x241, 1432724756686s[1].jpg [View same] [iqdb] [saucenao] [google]
901730

>>901145
>eSports

>> No.901741

I read the below about him on hacker news. Oh lawd, my new idol / businessfu.


bedhead 21 hours ago

>I am a fund manager and I have followed Martin Shkreli since his prior company, Retrophin, went public about two years ago. Simply put, Martin is a sociopathic criminal with a well-established, and consistent track record of deceit, recklessness, failure, and just plain old stupidity. But he is also hyper-aggressive. He is currently living in Switzerland, and it's my understanding that he fled the country in order to avoid prosecution and asset forfeiture.

>Anyway, Martin is running the same playbook at Turing that he did at Retrophin, which is to find some old orphan drug and raise the price by orders of magnitude. It's believed insurers won't have a choice but to pay since there are no competitors. If you want to see how this has worked out in the past, feel free to google "KV Pharmaceuticals Makena" which did something similar a few years ago, only to have it bankrupt the company (which would be an outcome completely consistent with Martin's history and tactics).

>For a fun read, check out the lawsuit filed against him by Retrophin. In all my years of investing, he is one of the most unique scumbags I've ever come across.

>http://www.sec.gov/Archives/edgar/data/1438533/0001193125152......

>> No.901760

>>901698
>This man is a hero.
Hopefully he'll become an hero.

>> No.901772

>>901741
kek this guy is going to get the long dick of the DOJ. They have pressured the Swiss before to give up criminals running from the US.

>> No.901938

I had two uncles and a aunt succumb to AIDS in the '90s and this asshole has the gall to raise prices on medicine.

I'll let Yawveh deal with him...

>> No.901972

>>901938
maybe they wouldnt succumb to AIDS if they werent degenerates anon

>> No.901976

>>901131
>AIDS drug
>has literally nothing to do with AIDS

fucking clickbait articles

>> No.901988

>>901976
Its used by AIDS patients. But also newborns, and cancer patients.

>> No.902002

>>901177
this is wrong, insurance companies can just cordon it as special medication and refuse payment

>> No.902021

>>901972
and I'm blocking you

>> No.902107

>>901243
It's an Albsnian tribe, he's Albanian

>> No.902111

>>901723
>13.50 - 16 - 19 - 23 - 29 - 34 -39 - 46 - 59 - 69 - 85 - 99 - 119 - 139 - 175 - 199 - 249 - 299 - 359 - 420 - 499 - 589 - 650 - 750
>Actually writing out the price gradually rising
Autism in action.

>> No.902114

>>902111

top kek

>> No.902155

>>901972
>>>/pol/

Go have fun kiddo

>> No.902160

>>901138
There's alternatives. We've come a long way since the 80's.

>> No.902175

>>901185
its only that price for people insured, he says uninsured will only have to pay $1, of course the jews are mad at him so are starting this hate.

>> No.902183
File: 24 KB, 460x296, lennyhenry.jpg [View same] [iqdb] [saucenao] [google]
902183

>Based Albanian Muslim BTFOing Americucks and AIDS whores

I'm OK with this

>> No.902191

>>901138

1. there's alternatives
2. if you cause enough of a shitstorm the feds will get involved, bureaucrats have lots of power and can be compelled to do things if they feel enough heat

>>901723

Probably not especially if there's litigation. Even if said litigation fails, lawyers still get paid.

>> No.902200

>>901723
The price will drop once hospitals and insurance companies start negotiating
It'll probably drop 80% because it's a fairly useless drug

>> No.902205
File: 51 KB, 600x800, 1442946599574.jpg [View same] [iqdb] [saucenao] [google]
902205

>tfw I will never be this alpha

>> No.902230

>>902205

>tfw you must by drug rights to compensate for your child-like body despite having a normal-sized head

>> No.902316

>>902205
>be rich as fuck
>Buy clothes 3x my size
>style my hair to look like a leisure suit larry
> Start scewing up peoples lives for teh lelx and dosh

I think he is drinking tigers blood :^)

>> No.902387

>>902175
Did he really say that uninsured would only have to pay 1$?

I guess the reason everyone is hating on him is 'cause the Jews and insurance companies are raging.

Or he's a sociopath.

>> No.902421

>>902183
He is not a Muslim. He is Catholic.

>> No.902423

>>902175
>drug cost $13.50 per pill
>now he's charging $1 per pill to normal people and $750 to insurance companies
if this is true that's actually a cool idea

>> No.902433

A bandait costs like $1000 in america

>> No.902484
File: 38 KB, 418x467, 1438815601980.jpg [View same] [iqdb] [saucenao] [google]
902484

>>902423
>he thinks insurance companies will pay for it

>> No.902485

>>902387

Everyones hating on him because everyone is poor.

People actually think they'll have to pay $750, which is so fucking funny lol

>> No.902489

>>902484
>>902423

Insurance companies will pay for most of it, and they will increase premiums on everyone, even those who do not use the drug, but it will be such a small amount, you will pay literally cents more, since this 'drug' is very direct and isn't the ONLY treatment around.

So again, its no big deal, and he's just found a way to MAKE BANK, from doing nothing.

He's a business, man.

>> No.902629

>>902421

>Albanian
>not a Muslim

good one, cuck

>> No.902711

Not all insurances will cover that kind of cost. I've had prescriptions that weren't even close to that price and I still was refused coverage.

>> No.902732

correcr me if im wrong but he is only able to do this because of government protection, right? He has some patent rights so there are no other alternatives available because of the market restriction imposed by government?

>> No.902733

THIS JUST IN, SHKRELI IS A CUCK

http://www.cnbc.com/2015/09/22/oll-back-pricing-for-daraprim-amid-controversy.html

>> No.902740

>>902732
>He has some patent rights so there are no other alternatives available because of the market restriction imposed by government?

No, there's no patent here. It's a 60 year old medication. It's just a niche drug - demand is steady, but not high or increasing - so there's only room for one manufacturer in the market. It's a situation where competition between drug companies on this medication would destroy both of them. This is why there is only one maker despite it being out of patent for literally over half a century.

Sorry, no libertarian parable here.

>> No.902785

>>902711

This. It depends on your provider and what schedule the drug is currently under.

Keep in mind that Daraprim is the TRADE NAME, generic is Pyrimethamine. I don't know if anyone provides the generic, but at $750 a pill there will be a market for the generic.

All he is doing is trolling the insurance industry.

>> No.902786

>>902740

Exactly. What's going to happen is at this price, it will encourage someone else to start making the generic and undercutting him, and eventually the market will work itself out to a new base price, which will be higher than the old price but lower than the $750-800+.

It's also an anti-malaria medicine, but we don't have much of a malaria issue within the United States, so again, there's not a huge demand for the drug.

>> No.902928

>>902740
Ok makes sense. But then honestly what is stopping other companies from making a generic? Is it that costly for them to get it started?

>> No.903129

>>902786
>>902928

Wrong, because it is a perfect information market with identical goods the only way two companies in it can compete is by price.

However the starting company (aka Martin Shkreli's company) has already set up the distribution net.
While it is true at the price of 750USD both actors would make a profit and could compete at a lower price it is not that simple.
This is where game theory comes in.

If someone would like to join the market and compete with Shkreli they would have to invest into distribution and some regulatory costs.
But like you said at 750 they would still be able to make a profit.
However the other companies will not go into this market because Shkreli can, at the first sight of competition bring the price down to brake even. Meaning at this new brake even price makers of the drug can only just barley stay in businesses which would not justify investing in a generic alternative.

The simple knowledge that Shkreli has total power over the price of the drug and if they where to be entering the market he would lower the price so it would be a net loss for them.

>> No.903295

>Shkreli
Was /pol/ right??

>> No.903339

>>902107
albanians, arabs, palestines, all semites ffs. jewish motherfucker nonetheeless.

>> No.903346

>>903129
The real answer is that this is a relatively niche drug (toxoplasmosis isnt that common, only compromised immune systems care) so there is no incentive to invest in a distribution network to compete in such a small market

Even at 750, both actors would go out of business if they competed, the market is too small so no one will enter

>> No.903362

>Expects not to be lambasted for raising a cheap drug by obscene amounts
>Also ASSFAGGOTS player
Why am I not surprised

>> No.903363

>>901131
He also tweeted in late august to short his own company

So he did this on purpose to make himself millions and then bail (hes done shit like this before)

Public outrage is just what he expected

>> No.903381
File: 179 KB, 1308x1332, kebab pepe.png [View same] [iqdb] [saucenao] [google]
903381

>>903363
>playing it like dota
>normies get pissed
>robots get hard

albanians, the jews of tomorrow

>> No.903761

>>901385
>dat hair
>dat bear
>dat little girl arms
>call it douch
omg guer e mai

>> No.903775

vae victis faggots

>> No.903792

>>902160
> we
>>>/lgbt/

>> No.903873

>>903761
>flo rida
>sunglasses indoors
>pink polo shirt
>faggy watch as a fashion accessory
>retardiculous attitude
>not a douche
nigga what

>> No.904304

This guy is "playing capitalism" by gaining exclusive rights to market pharmaceuticals that have 'life and death' implications.

This is a form of extortion. Especially when these drugs are so highly regulated that it is illegal for regular people to have or procure them independently. If you are an affected individual (using a previously available medication), pay this guy all the money you have or die.

More importantly, he is taking this money from the US public via our (now required) participation in the US Healthcare system.

I don't need that drug, but I have to have healthcare insurance. The patients who do need this medication to live are getting it, and the healthcare system is paying for it. Thus my heath insurance payments keep going up and up.

>> No.904328

£50 says a hitman takes him out by the end of 2016

>> No.904331

>>901138
Insurance companies and the government will just stop buying it.

The government can also FRAND it. https://en.wikipedia.org/wiki/Reasonable_and_non-discriminatory_licensing

Forcing him to allow other people to make it at reasonable price.

>> No.904333

>>904331
This is not a patented med. Other companies can make it now, but they don't because the one company making it fulfilled the demand. Now that the price was jacked up, other companies need time to begin producing a generic alternative and that can take years.

>> No.904371

>>902316
>using the smiley with a carat nose

>> No.904374

>>901131
An alpha would find a way to make more money off the drug without fucing everyone

>> No.904375

you guys realize that because of this price hop, insurance companies are required to cover it now? that's why you're hearing about it. If it were actually fucking poor people no one would care

>> No.904392

>>904375
this

>> No.904408

>>904375
That is why this guy is a crook, he is rigging prices, skimming money out of all of our pockets (via insurance) and calling it capitalism.

Greed.

The worst part is how many douche bags look up to him as a mad financial player. It is despicable, this guy isn't a business hero, he is a vampire and is extorting everything from a few people who are in life & death situations.

>> No.904454

>>901131
How did he start such a big business before he was 35?

>> No.904460
File: 129 KB, 400x541, biospace-news-martin-shkreli.jpg [View same] [iqdb] [saucenao] [google]
904460

Why is it legal to charge $13 for the pill in the first place if it costs under a dollar to manufacture?

>> No.904468

>>904454
>>904460

>>>/global/rules/2

>> No.904481

>>904460
Here, let's break it down. You see, in business, there are actually two types of costs. Variable and fixed costs. Variable costs are costs that raise on a per unit basis; this means if you sell more units, these costs go up. This is your "<$1 to manufacture".

Then there are fixed costs. These will be charged the same whether you sell 0 units or 10,000,000,000 units. R+D, clinical trials and other FDA hoop jumping falls in this category. The best you can do is spread these costs thinner and thinner over selling more units. So if it costs you $10,000,000 to bring the drug to market, then it really isn't just "< $1 to produce it", is it?

>> No.904485

>>903339
Serb spotted.

>> No.904488 [DELETED] 

>>904481
This makes no sense the faster you sell shit the cheaper it should be

>> No.904510

>>904460
>>904488
These are the people who post on /biz/ and give you advice about stocks.
You just developed this new vaccine, X12 which cures malaria. Now here's the thing, the development of X12 cost you $100, but before that you had to develop X1 to X11 until you got it right. Each 11 versions also cost you $100 each. Additionally it will cost you $200 to patent X12 and pass it through the FDA requirements. Afterwards you purchase a factory which has the right equipment to develope X12, these set you back $600.

Now you are ready to start producing X12, you imagine you can sell only 20 boxes of pills, it costs you $1 in salary and $1 in materials to produce a box of pills. So does that mean that you can sell it for $2? No. You have to sell it for $12.01 to make a profit, otherwise the project would not give you a return on your investment.

Now that's an extremely simplified example, I didn't even account for administration overhead, cost of financing, shipping, etc, etc. Even then, you still have to price X12 according to the appropriate ROI that your company requires, you know so that your company can pay for dividends, pay off outstanding debt and maybe have some money left over for future investments.

>> No.904521

>>904481
The drug has been unchanged since the 1950s. The only fixed costs are the manufacturing capital (which I'd imagine a PHARMACEUTICAL manufacturer already has) and the cost of acquiring the patent. Once you take your explanation of economies of scale, those costs spread over tons of pills, there's no way this is costing him that much.

>>904460
He has a patent. It gives him a complete monopoly on the market. The demand for a life-saving drug is completely inelastic. He can choose to set its price essentially wherever he wants (within reason) and people will still buy it.

Patents are actually usually a good thing. The promise of complete market control for a period of time encourages innovation and continued innovation of the product. However, the system is subject to abuse, particularly with super inelastic goods.

>> No.904786

>>901131
If I had aids and I was about to die
I'd make it my life mission to kill this mother fucker
Thankfully I don't have aids

>> No.904852

>>904521
>He has a patent.

If that were true, I would sympathize with you, but he has no patent. The drug is out of patent protection. Has been for decades. Literally *ANYBODY* with the $10-50M it would take to set up a production line from scratch and get the line certified by FDA could make a generic version of this drug starting tomorrow. The fixed costs per >>904510 and >>904481 are the problem.

He reasoned, correctly, that if he could buy the world's existing production for less than that amount, nobody would take the risk of going into business against him because he could undercut them per >>903129, so he keeps his monopoly.

In the meantime, for a $50M investment to get a monopoly on an off-patent drug, and a shot at making maybe $10-50M over the next couple of years, this motherfucker has wiped 10% off the value of the entire biotech sector in 3 days.

To the tune of tens of billions of dollars, he is a value destroyer, not a value creator.

>> No.904976

>>901723
whos the kid in the vid?

source please?

>> No.905882

>>904976
bump