May 16, 2019

May 15, 2019: Scion of Greed, Kleptocracy At Work, The Jolly Roger




When it comes to naming the scion of greed the countenance of one snot-nosed little son-of-a-bitch named Martin Shkreli leaps immediately to mind. One may recall that in 2015 as head of Turing Pharmaceuticals he acquired Daraprim. “The drug's most prominent use as of late 2015 was as an anti-malarial and antiparasitic, in conjunction with leucovorin and sulfadiazine to treat patients with AIDS-related and AIDS-unrelated toxoplasmosis...The price of a dose of the drug in the U.S. market increased from US $13.50 to US $750. per pill, overnight, a factor of 56” (1)

This outraged followed previous behaviors.

In May 2014, Shkreli had difficulty accessing public markets for capital, but received a $4 million series A funding round and a PIPE deal valued at $10 million underwritten by Roth Capital Partners. After obtaining the financing, Shkreli was able to acquire rights to market tiopronin (brand name, Thiola) a drug used to treat the rare disease cystinuria and Chenodal and subsequently raise the price of each drug substantially, with Thiola subsequently being marked up about 20 fold, from $1.50 to $30 per pill (patients must take 10 to 15 pills a day), and Chenodal about five fold. Retrophin did not lower the price of these drugs after Shkreli's departure.” (2)

There are other examples. He was hauled before Congress but refused to answer any questions other than confirm his name.  After receiving a tongue-lashing from outraged Democrats (the ReSCUMlickans were in control of the body), Shkreli was released to quickly return to rapine and plunder.

The real outrage is that he was finally sent off to prison...but for securities fraud! Yes, you can pluner the public but by god the capitalist is sacrosanct. Shkreli had finally gone too far—committed the capital sin—ripping off the stockholders.  In America, you can put the health of millions at risk but by god you don't mess with shareholders.

This is the state of the American health care system. I bring this up because this week yet another outrage was brought to our attention the editors of The New York Times.

At first blush,” wrote the editors, “the news that Gilead—the company that makes Truvada, the medication that prevents H.I.V. infection—will donate enough of the drug to treat 200,000 patients a year through 2030 seems like unequivocally good news. Some 40,000 Americans are newly infected with H.I.V. Every year. Reducing that transmission rate is the key to eradicating the virus in the United States...

But, as drug policy experts regularly note, such donations have a long history of doing more for drug makers than for patients.” (3)

Indeed as the Times points out, the tax breaks for the donation will amount to an estimated $1 billion on a product that costs around $10 million to produce. (4) So much for enlightened self-interest or disinterested benevolence.

A month's supply of Truvada costs roughly $6 to make and sells for more than $1,600 in the United States, according to the PrEP for All Collaboration, an advocacy group...Owing partly to those prices, only about 18 percent of the million or so at-risk Americans who need the drug have access to it, according to the Kaiser Family Foundation...

...As the Washington Post has reported, Truvada was developed largely with taxpayer dollars. The Centers for Disease Control and Prevention holds a patent on the medication, and the Justice Department is investigating whether the company owes the federal government back royalties on the patent, which experts say could amount to as much as $1 billion...

Officials at the Department of Health and Human Services have resisted calls to sue the company for those royalties, saying that such a lawsuit would be expensive and time-consuming and would ultimately not make much of a dent in the drug's price. They're probably right. But the prospect of such a lawsuit should have given the government considerable leverage in its negotiations with Gilead.

Mr. Trump appears to have used that leverage poorly. Regardless of how much access to the drug is increased by the new donation, most Americans who need Truvada will still be charged thousands of dollars a year for the drug, which citizens of most other countries get for a small fraction of that price. Those other countries made no investment in the development of Truvada, but most have access to generic versions of it. Gilead has managed to keep its rivals from introducing generics to the American market through a combination of lawsuits and private deals with would-be competitors.” (5)

It is evidently lost on the Department of Justice that making deals with would-be competitors in order to restrict access is price-fixing and a violation of anti-trust laws.

Clearly Disgustus, who had pledged to eradicate H.I.V., is no negotiator. Not only did the administration fail to bring legal action on the patent rights, but the government has failed to prosecute Gilead on charges of price-fixing. Disgustus didn't even employ the threat of such action in order to bring compliance.

The whole system is outrageous. This is what happens when profit governs the nation's health care system.  This is what happens when the government fails to protect the people by not enforcing laws long on the books against price-fixing.  This is what happens when Capital is allowed to form cartels controlling the marketplaces in the pharmaceutical, insurance and medical industries.   Here is yet another example of a product developed at public universities, at public expense, the patent for which is somehow found under the control of Corporate America. Why the people, who paid for the creation of this product, are not reaping the rewards is a national outrage. Here is yet another example of how we allow corporate greed not only plunder the marketplace but the public domain as well. The Kleptocracy at work, with the great kleptocrat sitting on the throne, overseeing his den of thieves. The ship of state has taken down the Grand 'Ole Flag and has run up the Jolly Roger.

An Br'er Putin, he jus' laugh and laugh

Impeach and Imprison.
_________________



  1. Ibid
  2. Editors. “Gilead's Gift Horse” The New York Times. Tuesday, May 14, 2019. Page A22
  3. Ibid
  4. Ibid

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