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PROFIT ON THE DRUG. THE DRUG WAS BEING SOLD BY SEVERAL COMPANIES. IT CAME AS A PACKAGE. NO ONE EVEN KNEW THEY OWNED IT. BETTY: IT WAS ORIGINALLY GLAXOSMITHKLINE. MARTIN: IT HAS BEEN PASSED AROUND. WE HAVE A FIRST COMPANY TO FOCUS ON THIS PRODUCT. THAT IS A GREAT THING. ULTIMATELY THE COMPANIES BEFORE US WERE GIVING IT AWAY. THE PRICE THEY WERE PRICING IT AT -- BETTY: $13.50. MARTIN: YOU ONLY NEED LESS THAN 100 PILLS. THE PRICE PER COURSE OF TREATMENT TO SAVE YOUR LIFE WAS ONLY $1000. THESE DAYS, CANCER DRUGS SELL FOR $100,000. RED DISEASE DRUGS CAN COST HALF $1 MILLION. DARAPRIM IS STILL UNDERPRICED RELATIVE TO PEERS. BETTY: TO PRODUCE THE PILL IT COSTS A DOLLAR. MARTIN: IT COSTS VERY LITTLE TO MAKE DARAPRIM. BETTY: HOW ARE THEY LOSING MONEY? MARTIN: YOU HAVE DISTRIBUTION COSTS, FDA COSTS, MANUFACTURING COSTS NOT INCLUDED FOR THE INGREDIENTS BUT ALSO THE PEOPLE THAT MAKE ME PILL AND MAKE SURE IT IS MADE TO SPECIFICATIONS AND THOSE HAVE INCREASED. BETTY: THEY ARE UP 5000%? MARTIN: THE DRUG WAS DOING $5 MILLION IN REVENUE. I DON'T THINK YOU CAN FIND A DRUG COMPANY ON THE PLANET THAT CAN MAKE REVENUE ON $5 MILLION. BETTY: THEY WERE LOSING MONEY -- MARTIN: AND NOT PROVIDING DEDICATED PATIENT SERVICES. RARE DISEASES ARE NOT LIKE BUYING ADULT. THIS REQUIRES A LOT OF ATTENTION FROM THE DRUG COMPANY. THEY HAVE TO PARTNER WITH THE PATIENTS AND DISTRIBUTORS. THAT COSTS A LOT OF MONEY. BETTY: SOME REACTION IN THE MEDICAL COMMUNITY FROM VARIOUS DOCTORS, ONE IN PARTICULAR AT SINAI, THE HEAD OF INFECTIOUS DISEASES SAID WE ARE GOING TO HAVE TO LOOK FOR ALTERNATIVE TREATMENT. WE CANNOT TAKE DARAPRIM ANYMORE AND WE WILL NOT BE ABLE TO KEEP THE DRUG IN STOCK. THAT MIGHT DELAY TREATMENT FOR SOME PATIENTS. MARTIN: WE'VE PUT THE RIGHT PROTOCOLS IN PLACE TO MAKE SURE THAT PATIENTS GET THE DRUG FASTER AND WITH ALMOST NO COST. WE HAVE A CO-PAY SYSTEM THAT WILL LIMIT THAT THERE WAS LIMITED FREE DRUG PROGRAM AND WE HAS EXPANDED THAT. HALF OF OUR DRUG WE GET AWAY FOR ONE DOLLAR. THAT SHOWS OUR COMMITMENT TO PATIENTS. IF YOU CANNOT AFFORD THE DRUG, WE WILL GIVE IT AWAY FOR FREE. ESPECIALLY IF A PATIENT IS IN NEED. BETTY: HOW DOES THAT INTERSECT WITH YOUR -- YOU KNOW, YOUR STATED OBJECTIVE THAT YOU NEED TO MAKE MONEY. MARTIN: IT IS AN IMPEDIMENT. WE WILL NEVER DENY SOMEONE TREATMENT FOR THEIR INABILITY TO PAY. EVEN IF WE ARE HAVING A DISAGREEMENT WITH THE INSURER, WE WILL SEND THEM THE DRUG FOR FREE. THAT IS ANOTHER THING PRIOR COMPANIES HAVE NOT DONE. BETTY: BECAUSE IT IS MORE EXPENSIVE, ARE THERE GOING TO BE OTHER DRUG COMPANIES THAT WILL SAY WE WILL SELL IT FOR CHEAPER. MARTIN: THAT IS A GREAT THING. IF YOU LOOK AT DISEASES LIKE MULTIPLE SCLEROSIS, THEY HAVE BEEN TRANSFORMED BY PROFIT INCENTIVES. NOW THAT TOXOPLASMOSIS IS GENERATING A PROFIT, THIS DRUG IS FROM THE 1940'S. WE CAN MAKE A BETTER JOB. BETTY: IS THAT WHAT YOU ARE TRYING TO DO? PUT THE DRUG OUT OF BUSINESS QUESTION MARK MARTIN: WE ARE SPENDING TENS OF BILLIONS OF DOLLARS TO MAKE DARAPRIM LESS TOXIC. PATIENTS DESERVE A DRUG THAT IS BETTER FOR THEM. THEY DESERVE MODERN MEDICINE THAT CAN SHARE TOXIC PLASMAS IS. BETTY: YOU ARE FIND WITH RAISING THE PRICE BECAUSE YOU WANT TO MAKE MONEY, WHICH YOU WILL PUT INTO ALTERNATIVE RESEA RCH TO SEE IF THERE'S A BETTER WAY TO TREAT NOT WITH DARAPRIM. MARTIN: WE KNOW THERE'S A BETTER WAY. WE ARE DEVELOPING THREE OR FOUR DIFFERENT DRUGS. NO ONE HAS CARED ABOUT THIS ILLNESS FROM A PARK CITY GROUP -- FROM A PHARMACEUTICAL PERSPECTIVE. NOW YOU HAVE AN ALLY IN OUR COMPANY LOOKING TO SPEND THAT MONEY. WE ALL KNOW THAT DRUG DEVELOPMENT IS EXPENSIVE. IT IS ONLY FAIR THAT WE TAKE THE MONEY AND PUT IT INTO THE PATIENTS' HANDS. I DO NOT ADVOCATE FOR COMPANIES THAT RAISE THE PRICE AND DO NOT DO RESEARCH. THE SPOTLIGHT ON THE IS INTERESTING. I KNOW WHAT WE ARE DOING IS RIGHT. BETTY: DOCTORS WOULD SAY IF IT WAS WORKING, LIBRARY GET? -- WHY BREAT IT. MARTIN: THESE BUGS EVOLVE. IF WE STILL HAD A FOCUS ON PENICILLIN, WE WOULD BE IN TROUBLE. BY MAKING A BETTER VERSION OF DARAPRIM, 2 BILLION PEOPLE HAVE THIS. THE LATENT FORM IS A BUT IF YOU BECOME IMMUNOSUPPRESSED IT CAN KILL YOU. IF IT EVOLVES IT WILL BE A TICKING TIME BOMB AND WE NEED TO BE PREPARED IN CASE IT MUTATES. DARAPRIM DOES NOT CURE YOU 100% OF THE TIME. I THINK WE CAN GET IT UP TO 100% WITH RESEARCH. BETTY: THANK YOU. TURING PHARMACEUTICALS CEO MARTIN SHKRELI JOINING US. STILL AHEAD, THE AIRPLANE