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Ex-hedge funder buys rights to AIDS drug and raises price from $13.50 to $750 per pill

Dubbington said:
Ok......nope, still can't figure out why other than greed and the fact he can.

Probably also attention as he doesn't look like he's reached puberty yet and on,y gets ass when accompanied by lots of spent hundred dollar bills.
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Most legacy royalty type deals (which this is close to) involve a larger than normal selling price for the asset. That's what my thought was here; the seller upped the price as their capital was best left in the current asset as opposed to selling and converting to a new investment. Whenever that happens, the seller demands a premium for their lack of replacement, low risk asset.

IOW, business deals aren't always what they seem. Just looking at this guy, I think BARF got it correct. He pulled shenanigans somehow and will profit healthily.
 
Holeshot said:
Breathe for a second Kevin. What I was pointing out was that the ultimate buyer may not be entirely responsible for the raise in price. Certainly he has to cover his cost on the acquisition. You get that much about how the economy works, I believe.

I don't think it's ok to raise prices by 5000%. However, there always is a less offensive reason that we discover later. Only fools continue to have outrage when this has been the case time and time again. So breathe a second and try to figure out why (aside from raw greed) prices would be raised so astronomically and then, let's have (or not have) our just outrage.

Americans...
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What makes you think I'm outraged and breathing heavy? I see greedy shits that champion actions like this fairly often.
Take a breath and ease up on your worry about my level of angst. :thumbup

Capitalists. :rolleyes
 
Sometimes, the method of getting rich isn't because they are smarter or more innovative, it's just because they had absolutely no ethics or morals and were willing to do something more dirty and nasty that anybody else would have done.

This type of person is not to be rewarded or admired, they should be disowned and made into a pariah, otherwise their kind of douchebaggery is just going to spawn other similar behavior.

If we allow this guy a free pass, we fail as human beings.
 
Climber said:
Sometimes, the method of getting rich isn't because they are smarter or more innovative, it's just because they had absolutely no ethics or morals and were willing to do something more dirty and nasty that anybody else would have done.

This type of person is not to be rewarded or admired, they should be disowned and made into a pariah, otherwise their kind of douchebaggery is just going to spawn other similar behavior.

If we allow this guy a free pass, we fail as human beings.
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Sometimes? A lot of the times... :laughing
Yet the very people they exploit admire them and gawk over them the most.. :wtf. If there was a social norm that valued people based on how considerate, educated, innovative, and helpful people were, we wouldn't have what we have now..

However, central to America's dominant ideology is valuing a person based on how much money they make and how successful they are .. And well, you get scumbags like this

I'm not sure why this is a surprise. This kind of crap happens everyday in business on all sorts of levels. It's called : capitalism :laughing

Are people just now waking up to how this works?
Screw people over, charge as much as you can and try to profit as much as you can from someone else's work.... This is par for the course.
Rent works the same way.. How bad do you want it .. and how much a landlord can take away just to the point that you can stay afloat..
 
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phocup said:
Been thinking about this a lot to day. No argument the guy isn't going to win any humanitarian awards .. but in some ways you have to respect the guy...
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No. No I do not. I will save my respect for decent, admirable humans. Men and women of science who understood what was really important.

Hero:

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the story sounds super fishy. the numbers don't support the ridiculously high sell price paid for the company. collusion? if i worked for the FTC or DOJ, this one would seriously pique my curiosity. would love to see this snake led away in handcuffs. will probably happen at some point.
 
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Whether someone makes money has zero impact one respect for them.


How they make it is more important to me:
 
phocup said:
Been thinking about this a lot to day. No argument the guy isn't going to win any humanitarian awards .. but in some ways you have to respect the guy. Finding a way to create new income from old products isn't an easy feat. He's definitely a smart guy and he found a unique opportunity no one else did. Can you really fault him for seizing the opportunity?
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The term "Magnificent Bastard" comes to mind.
 
littlebeast said:
the story sounds super fishy. the numbers don't support the ridiculously high sell price paid for the company.
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Sure they do. He paid $55 million for a $5 million revenue drug pre pricing increase. With the increase, the revenue would jump to almost $280 million. Even if he sees over half his patients refuse to buy now, he's still going to make a huge return on this product. The manufacturing costs are low and there is zero competition over the long term for a chronic condition. And the selling costs for a drug like this are always much lower than the typical drug. He's going to make a huge return on his investment in a very short time.
 
Archimedes said:
Sure they do. He paid $55 million for a $5 million revenue drug pre pricing increase. With the increase, the revenue would jump to almost $280 million. Even if he sees over half his patients refuse to buy now, he's still going to make a huge return on this product. The manufacturing costs are low and there is zero competition over the long term for a chronic condition. And the selling costs for a drug like this are always much lower than the typical drug. He's going to make a huge return on his investment in a very short time.
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Thanks. As I suspected, the selling price of the asset had a bit to do with the rise in sales price of the product.
 
Holeshot said:
Thanks. As I suspected, the selling price of the asset had a bit to do with the rise in sales price of the product.
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It's always implicitly part of the negotiation in these types of deals, but the buyer never discloses their full intentions. However, given the low manufacturing costs and the relatively low selling costs on a drug like this, it would not take a big price increase to justify paying $55 million for it.
 
So if I understand this correctly, he basically overpaid for the rights, and now the poor guy had to raise the price just to break even?
Gosh, that's completely different.

Here I thought he was just a greedy capitalist taking advantage of our lack of regulatory oversight.:dunno
 
mean dad said:
So if I understand this correctly, he basically overpaid for the rights, and now the poor guy had to raise the price just to break even?
Gosh, that's completely different.

Here I thought he was just a greedy capitalist taking advantage of our lack of regulatory oversight.:dunno
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10X earnings looks pretty damn healthy for the seller. Then again, I've got no idea what stuff like that sells for in the Health care field. That's why I pointed to the likeness to an annuity of sorts. Let's not discount: both parties are reaping dollars from the users of the drug. That's the part to recognize.

Capitalism is commonly mischaracterized. It's most important tenant is that of Bid/ Ask.
 
Archimedes said:
Sure they do. He paid $55 million for a $5 million revenue drug pre pricing increase. With the increase, the revenue would jump to almost $280 million. Even if he sees over half his patients refuse to buy now, he's still going to make a huge return on this product. The manufacturing costs are low and there is zero competition over the long term for a chronic condition. And the selling costs for a drug like this are always much lower than the typical drug. He's going to make a huge return on his investment in a very short time.
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yeah - we'll see.
 
Ethical within the context of business.

Morally reprehensible as fuck. Guy should be left on a barge and sunk
 
Karbon said:
Ethical within the context of business.

Morally reprehensible as fuck. Guy should be left on a barge and sunk
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What about the sellers that asked 10X earnings?
 
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