Kansas City has its own price-gouging pharmaceutical company
Down in the East Bottoms, at 1800 North Topping Avenue, is a pharmaceutical company called Nostrum Laboratories. This company makes a drug called nitrofurantoin, which is an antibiotic that treats urinary tract infections. Nitrofurantoin is categorized as an essential medicine by the World Health Organization.
Last month, Nostrum’s CEO, a man by the name of Nirmal Mulye, decided to quadruple the price of this drug. It used to be $475 for a bottle of this medication. It now costs $2,300 a bottle.
Why did Mulye do this? Because he believes he has a “moral requirement to sell the product at the highest price.”
That is a direct quote he gave to the Financial Times. A moral requirement to gouge sick people who need the drug he makes.
The other excuse Mulye gave for the triple-digit price hike is that a competitor also raised the price of this drug — to $2,800 — so since Nostrum is only charging $2,300, the company is actually doing us poor sick rubes a favor. Again, direct quote: “The point here is the only other choice is the brand at the higher price. It is still a saving regardless of whether it is a big one or not.”
Nirmal’s just getting going. Here he is defending Martin Shkreli:
“I agree with Martin Shkreli that when he raised the price of his drug he was within his rights because he had to reward his shareholders.”
Scott Gottlieb, commissioner of the Federal Drug Administration, responded to Mulye’s comments on Twitter.
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Gottlieb added that the price Nostrum was charging is “excessive” and “detached from market principles.”
Mulye also told the FT that the fees the FDA charges drug companies amounts to “highway robbery.” This from a guy who raised the price of his company’s essential medication 400 percent overnight. These people’s brains are broken. Soaked to the stem.
Read the full FT piece here; it’s worth your time.
Update: The Star got ahold of Mulye. He calls himself a “savior” and warns that KC could lose 100 jobs if all this negative attention persists: “If they keep attacking me like this I will have to shut down the plant, and all the people in Kansas City will lose their jobs.” Jesus Christ.
