Monopoly Mistakes
11/05/2015 |
When Turing Pharmaceuticals acquired Daraprim, they raised the price from $13.50/dose to $750/dose because they had a monopoly on it. In 2010 China tried to corner the market in rare-earths by reducing exports; prices quickly rose 1000%. Then economics kicked in. Recently Imprimus Pharmaceuticals offered up an alternative to Daraprim at 99 cents/tablet. US rare-earths firm Molycorp declared bankruptcy as firms recycled, substituted and innovated and demand for rare-earths collapsed.