Price increases of drug Daraprim could impact the global pharma sector
Overnight price increases of Daraprim drug by the US start-up, Turing Pharmaceutical is impacting pharmaceutical sectors worldwide. The company had acquired the right of the drug in August and immediately increased its price. The increase is causing a backlash within the pharmaceutical industry creating most of the shares down in a massive sell-off.
Shares heavily affected by the move is Valeant whose shares fell from $229 to $178.38. As well as Valeant, Eli Lilly and Mallinckrodt may see their potential earnings drop as much as 10 percent per share.
However, analysts from Morgan and Stanley say that the downtrend is temporary and will not be affecting the global industry in the long term.
The New York Times reported that the price has been increased to more than 5,000 percent from its previous $13.50 to $750 per pill. The drug which has been used to treat toxoplasmosis, AIDs, Cancer and Malaria is a drug that is in high demand in the pharmaceutical industry.
