Vyera Pharmaceuticals, formerly called Turing Pharmaceuticals, lost more than $1 million in the first quarter of 2018, according to financial documents obtained by STAT. Sales, driven by the $750-a-pill Daraprim, have been on the wane over the past two years, falling more than 14 percent in 2017 and on pace to drop another 7 percent in 2018.
The company gained notoriety in 2015 after [Martin] Shkreli, then CEO, acquired Daraprim, which treats a rare infection called toxoplasmosis, and raised the price more than 5,000 percent. Despite a public outcry, Shkreli claimed the move would bring in hundreds of millions of dollars a year in profits for the company’s shareholders and fund the development of new, better treatments for toxoplasmosis and other rare diseases.
But audited financial statements obtained by STAT show Vyera is nowhere near meeting either goal. The documents suggest Shkreli’s move was a short-term success: The Daraprim price hike helped Vyera achieve stellar gross margins, but the company’s expenses cut deeply into its net income. After turning small profits in 2016 and 2017, Vyera is now losing money. Daraprim sales are falling, and Vyera has laid off at least a handful of salespeople; expenses remain high.
Sales are falling? After a 5000-percent price hike? Who could have imagined such a thing?
U.S. prescriptions for Daraprim have consistently fallen over the past two years, from 427 in the first quarter of 2017 to just 107 in the first quarter of 2018, according to IQVIA, a pharma consultancy that tracks drug sales.
But it’s apparently not just the price:
A former employee said the company’s problems in part reflect a shrinking patient population.
Toxoplasmosis is a rare infection that largely affects patients with HIV. As HIV therapies gain wider use across the country, there are fewer and fewer patients who need Daraprim. That, coupled with the drug’s famously high price, has put a damper on sales, the former employee said.
“It’s a dying disease — which is a good thing — but it’s bad for the company,” said the former employee, who spoke on condition of anonymity so as not to violate an agreement with Vyera.
So not only does PharmaBro’s company languish in the market while he himself languishes in jail, but fewer people are getting sick. Karma scores the trifecta.