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Using Antitrust Law to Challenge Turing's Daraprim Price Increase

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TypeOfResource
Text
TitleInfo
Title
Using Antitrust Law to Challenge Turing's Daraprim Price Increase
Name (authority = orcid); (authorityURI = http://id.loc.gov/vocabulary/identifiers/orcid.html); (type = personal); (valueURI = http://orcid.org/0000-0001-8494-775X)
NamePart (type = family)
Carrier
NamePart (type = given)
Michael A.
Affiliation
Dean's Office (School of Law-Camden), Rutgers University
Role
RoleTerm (authority = marcrt); (type = text)
author
Name (type = personal)
NamePart (type = family)
Levidow
NamePart (type = given)
Nicole L.
Role
RoleTerm (authority = marcrt); (type = text)
author
Affiliation
Brigham and Women's Hospital
Name (type = personal)
NamePart (type = family)
Kesselheim
NamePart (type = given)
Aaron S.
Role
RoleTerm (authority = marcrt); (type = text)
author
Affiliation
Harvard Medical School; Brigham and Women's Hospital
Name (authority = RutgersOrg-Department); (type = corporate)
NamePart
Dean's Office (School of Law-Camden)
Name (authority = RutgersOrg-School); (type = corporate)
NamePart
School of Law-Camden
Genre (authority = RULIB-FS)
Article, Non-refereed
Genre (authority = NISO JAV)
Version of Record (VoR)
OriginInfo
DateIssued (encoding = w3cdtf); (keyDate = yes)
2017
Abstract (type = Abstract)
As CEO of Turing Pharmaceuticals, Martin Shkreli made worldwide headlines by obtaining marketing rights to pyrimethamine (Daraprim) and quickly increasing the price 5000 percent, from $13.50 to $750 per pill.

In addition to increasing price, Turing initiated another less widely appreciated move — it changed the distribution scheme for the drug. Before its acquisition by Turing, pyrimethamine was widely available. But in the months before the price hike, apparently as a condition of the sale to Turing, pyrimethamine was switched to a controlled distribution system called Daraprim Direct, in which prescriptions or supplies could be obtained only from a single source, Walgreen’s Specialty Pharmacy.

The Daraprim Direct system made it impossible for anyone other than registered clients to obtain the drug. This could include other manufacturers wishing to obtain samples for use in bioequivalence studies supporting a generic application. The restricted distribution scheme thus could allow Turing to prevent generic versions of the drug from reaching the market.

This Essay addresses the question of whether Turing's behavior violates the antitrust laws. Part I describes the typical distribution systems in the pharmaceutical industry. Part II examines monopoly power and considers whether Daraprim possessed such power. Part III considers the second element of monopolization claims, exclusionary conduct, and explores whether Turing engaged in such behavior. Part IV then reaches beyond pyrimethamine to offer additional examples of similar conduct. Given that the Federal Trade Commission and N.Y. Attorney General are currently conducting antitrust investigations of this behavior, this Essay offers a framework for analysis.
Language
LanguageTerm (authority = ISO 639-3:2007); (type = text)
English
PhysicalDescription
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application/pdf
Extent
30 p.
Extension
DescriptiveEvent
Type
Citation
DateTime (encoding = w3cdtf)
2017
AssociatedObject
Name
Berkeley Technology Law Journal
Type
Journal
Relationship
Has part
Detail
1379-1408
Identifier (type = volume and issue)
31(2)
Reference (type = url)
https://heinonline.org/HOL/P?h=hein.journals/berktech31&i=1413
RelatedItem (type = host)
TitleInfo
Title
Carrier, Michael A.
Identifier (type = local)
rucore30244100001
Location
PhysicalLocation (authority = marcorg); (displayLabel = Rutgers, The State University of New Jersey)
NjNbRU
Identifier (type = doi)
doi:10.7282/T3KD2277
Genre (authority = ExL-Esploro)
Journal Article
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Copyright for scholarly resources published in RUcore is retained by the copyright holder. By virtue of its appearance in this open access medium, you are free to use this resource, with proper attribution, in educational and other non-commercial settings. Other uses, such as reproduction or republication, may require the permission of the copyright holder.
Copyright
Status
Copyright protected
Availability
Status
Open
Reason
Permission or license
RightsEvent
Type
Permission or license
AssociatedObject
Type
License
Name
Multiple author license v. 1
Detail
I hereby grant to Rutgers, The State University of New Jersey (Rutgers) the non-exclusive right to retain, reproduce, and distribute the deposited work (Work) in whole or in part, in and from its electronic format, without fee. This agreement does not represent a transfer of copyright to Rutgers.Rutgers may make and keep more than one copy of the Work for purposes of security, backup, preservation, and access and may migrate the Work to any medium or format for the purpose of preservation and access in the future. Rutgers will not make any alteration, other than as allowed by this agreement, to the Work.I represent and warrant to Rutgers that the Work is my original work. I also represent that the Work does not, to the best of my knowledge, infringe or violate any rights of others.I further represent and warrant that I have obtained all necessary rights to permit Rutgers to reproduce and distribute the Work and that any third-party owned content is clearly identified and acknowledged within the Work.By granting this license, I acknowledge that I have read and agreed to the terms of this agreement and all related RUcore and Rutgers policies.
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Technical

RULTechMD (ID = TECHNICAL1)
ContentModel
Document
CreatingApplication
Version
1.6
DateCreated (point = end); (encoding = w3cdtf); (qualifier = exact)
2017-06-18T21:35:33
DateCreated (point = end); (encoding = w3cdtf); (qualifier = exact)
2018-05-22T14:13:21
ApplicationName
Acrobat Distiller 17.0 (Windows)
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