A Law Professor’s Big Idea for Combating Greedy Drug Company Titans Like Martin Shkreli

In 2015, CEO of Turing Pharmaceuticals Martin Shkreli infamously raised the price of the life-saving drug Daraprim by 5,000%. Daraprim, developed more than 60 years ago, is used to treat the deadly parasitic infection toxoplasmosis. It was selling for $13.50 a pill; then Turing raised the price to $750. The move sparked massive backlash and Congressional hearings, and Shkreli himself was eventually arrested for, and convicted of, unrelated securities fraud charges. But the original, horrible problem didn’t get fixed. Turing kept the price sky-high; as of August 2016, many patients were paying $375 per pill.

Shkreli is not an outlier, according to Indiana University law professor Fran Quigley’s new book Prescription for the People. The pharmaceutical industry jacks up prices on life-saving drugs to extort windfall profits from desperate patients as a matter of course. That’s an immoral way to treat medicine, Quigley argues. The solution? Stop treating treating medicine as private property—and start treating it as a public good, like education or infrastructure.

It’s one thing to allow private companies and markets to set prices for items like big-screen TVs or cars, Quigley explains via email. In those cases, “purchasers can compare prices and walk away from the transaction if they wish.” But a patient with cancer or a child diagnosed with Type II diabetes can’t just walk away. “That kind of choice is not present when the good in question is life-or-death and there are no options for comparison shopping,” he writes. Societies generally accept that it’s in the best interests of the public to ensure that patients have access to medicine. The US, for example, spends an enormous amount of money on developing new medicines and treatments. The National Institutes of Health spends $32 billion a year on medical research...