A Look At The Legality Behind Daraprim's Price Spike

Law360, New York (September 30, 2015, 12:15 PM EDT) -- Turing Pharmaceuticals AG and its controversial CEO Martin Shkreli recently made headlines when Turing raised the price of its antiprotozal drug Daraprim (pyrimethamine) from $13.50 to $750 per tablet.[1] The price increase received significant media attention.

Here, we evaluate Turing’s Daraprim price hike from a legal perspective, including an analysis of the mechanisms used to balance innovation and drug pricing in the U.S., and their degree of application, if any, to the drug’s recent price hike.

Balancing Drug Prices and Innovation

The United States has traditionally incentivized drug development innovation. Patents and the U.S. Food and Drug Administration's regulatory exclusivities allow...

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