Turing Pharmaceuticals

Turing Pharmaceuticals
Vyera Pharmaceuticals · Public domain · source
Name	Turing Pharmaceuticals
Type	Private
Industry	Pharmaceuticals
Founded	2015
Founder	Martin Shkreli
Headquarters	New York City
Products	Daraprim (pyrimethamine)

Turing Pharmaceuticals was a New York–based pharmaceutical company founded in 2015 that became prominent after a high-profile price increase of the antiparasitic drug Daraprim. The company drew attention from United States Congress, United States Department of Justice, Food and Drug Administration, and numerous media outlets including The New York Times, The Wall Street Journal, and The Washington Post. Controversy surrounding its actions intersected with debates involving Affordable Care Act, Hillary Clinton, and lawmakers such as Bernie Sanders and Elizabeth Warren.

History

Turing Pharmaceuticals was established in 2015 by investor Martin Shkreli after he left Retrophin, Inc. following disputes with its board, and shortly thereafter acquired rights to Daraprim from a specialty pharmaceuticals company. The founding followed prior ventures and controversies linked to Shkreli's involvement with hedge funds and firms connected to KaloBios Pharmaceuticals, Phoenixus AG, and Sarepta Therapeutics executives. Early corporate activity involved acquisitions of legacy drugs used in treatment of toxoplasmosis and malaria, positioning the firm among specialty drug companies similar to Valeant Pharmaceuticals International and Mylan N.V..

Corporate structure and leadership

The company was privately held and led by founder and CEO Martin Shkreli until his arrest in December 2015 by the Federal Bureau of Investigation on unrelated securities fraud charges brought by the United States Attorney for the Eastern District of New York. Leadership included executives with backgrounds at investment firms and pharmaceutical startups; stakeholders and investors were linked to private equity and hedge funds similar to those that had backed companies like Taro Pharmaceutical Industries and Allergan. Corporate governance and board composition drew scrutiny from members of the United States Senate Committee on Health, Education, Labor and Pensions and state attorneys general such as those from New York and California.

Daraprim pricing controversy

After acquiring the rights to Daraprim (pyrimethamine), a decades-old antiparasitic drug used to treat toxoplasmosis, Turing Pharmaceuticals raised the wholesale price from $13.50 to $750 per tablet, a move that prompted immediate backlash from healthcare providers and organizations including American Medical Association, Infectious Diseases Society of America, and Doctors Without Borders. The price increase affected hospitals, community clinics, and nonprofit providers such as Planned Parenthood and state health departments in places like New York City and Los Angeles County, California. Media coverage from outlets including CNN, BBC News, and Reuters amplified scrutiny, while patient advocacy groups like AIDS Healthcare Foundation and March of Dimes condemned the hike.

Legal and regulatory actions

The pricing and subsequent public outcry spurred inquiries and investigations by regulatory and enforcement bodies including the Federal Trade Commission, state attorneys general from Texas, Washington, and Illinois, as well as hearings before the United States House Committee on Oversight and Reform. Criminal proceedings against Martin Shkreli were conducted by the United States Department of Justice on charges of securities fraud and conspiracy, leading to a trial in the United States District Court for the Eastern District of New York. Regulatory discussions involved the Drug Enforcement Administration only insofar as controlled substance considerations for antiparasitics, while lawmakers referenced statutes such as the Food, Drug, and Cosmetic Act during legislative debates about pricing transparency and importation of generics.

Public and political response

Public outrage generated campaigns on social media platforms including Twitter, Facebook, and Reddit, and prompted commentaries from political figures such as Barack Obama, Ted Cruz, and Nancy Pelosi. Congressional hearings featured testimony from company representatives alongside testimony from clinicians affiliated with institutions like Johns Hopkins University, Massachusetts General Hospital, and Mount Sinai Health System. Several presidential candidates during the 2016 cycle, including Hillary Clinton and Bernie Sanders, invoked the episode to advocate for drug pricing reform, and states explored measures akin to drug importation policies championed by governors including Andrew Cuomo and Jerry Brown.

Aftermath and legacy

Following intense scrutiny Turing Pharmaceuticals renamed itself to Phoenixus AG and there were moves by other pharmaceutical companies to expand access to generic alternatives; manufacturers and compounding pharmacies such as Sandoz (Novartis) competitors and independent compounding firms sought licenses to produce pyrimethamine. The episode contributed to policy proposals including hearings that led to draft legislation on drug pricing reform in the United States Senate, with senators such as Amy Klobuchar and Patty Murray taking part in wider initiatives. The controversy influenced public perception of pharmaceutical pricing practices alongside other cases involving Valeant Pharmaceuticals International and Mylan N.V., shaping subsequent debates around Medicare drug price negotiation and proposals from administrations including that of Donald Trump. The legal conviction of Martin Shkreli and subsequent civil and regulatory attention left a legacy within pharmaceutical ethics discussions at institutions like Harvard Medical School and Yale School of Management and among advocacy groups such as Public Citizen.

Category:Pharmaceutical companies of the United States