I bet a few companies are not too happy about what Turing Pharmaceuticals just did.
Turing acquired rights to the drug Daraprim and pretty much right away increased its price from $13.50 a tablet to $750. The NYT has the story.
Well, that created quite an uproar. Hillary Clinton tweeted, "Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on. -H"
Today the biotech sector had a bad day on Wall Street.
Now what was Turing up to? Maybe the previous owner, Impax Laboratories, was simply mispricing it? Maybe there is a difference in opinion as to the price elasticity of demand?
Or maybe there is a difference in time horizon/discount rate between the old owner and the new owner, with the new owner caring more about cash in the present than a lower but longer annuity?